Pacific rim includes the countries around the shores of the Pacific ocean including Japan and the western seaboard of the United States and Canada.

Packaging Functional roles: 1) Protect a products before consumer use, 2) can act to facilitate a product's use by the consumer, 3) must satisfy legal requirements, 4) can act to inform the consumer, 5) play an important communication role for the product, acts on an symbolic level, associating the product with specific brand values and attributes. May be used to send strong messages to customers. Development: 1) Design and redesign, 2) Shape and size, 3) Color and graphics, 4) Names.

Parallel processor High-performance computer which uses numerous microprocessors to process a number of pieces of information at the same time.

Pareto (80/20) distribution is a frequency distribution with a small proportion (say 20 per cent) of the items accounting for a large proportion (say 80 per cent) of the value/resources.

Participation involves employees and make them committed to their task.

Conditions of successful participation: 1) Genuine, 2) Continual, 3) Clear purpose, 4) Manager's wish.

Partnership see Trading organization.

Partnership marketing involves close collaboration and mutually advantageous relationships with linked distributors in the supply chain.

Partnership souring is the use of a supplier with whom the organization has a long-term relationship including new product development and efficiency improvements.

Party manifesto is a program of intended policies if successfully elected.

Payback method is a method of investment appraisal.

Penalty clause Clause in a contract providing for a specific sum to be payable in the event of a subsequent breach.

Penetration pricing A value-pricing technique in which you set prices aggressively low in order to gain as much market share as possible; the opposite of skim pricing. (Courtland L. Bovee, John V. Thill)

People The marketing mix element for services, to highlight the fact that the quality of many services depends on the quality of people delivering it (e.g. a pay can be ruined by bad acting).

Perceived risk The extent of uncertainty and potential losses that a buyer perceives about a purchase decision. (Courtland L. Bovee, John V. Thill)

Definition #1 Perception is the process by which people select, organize and interpret sensory stimuli into a meaningful and coherent picture. The way consumers view an object (for example their mental picture of a brand or the traits they attribute to a brand).
Definition #2 Perception is the process by which data is selected, sorted, organized and interpreted in order to form a meaningful and coherent 'picture' of the world.

Perceptual map A diagram that illustrates how customers perceive a variety of competing products according to their key attributes. (Courtland L. Bovee, John V. Thill)

Perfect information Information which removes all doubt and uncertainty from a decision and gives decision-makers complete confidence that they have selected the most profitable course of action.

Perfect market is a perfectly competitive market is one in which there is a large number of firms, each with a very small share of the market, producing a homogeneous product, with firms and consumers possessing perfect information, and with free entry to and exit from the industry.

Perfectly elastic demand The case when changes in demand have no effect on price; the opposite of perfectly inelastic demand. (Courtland L. Bovee, John V. Thill)

Perfectly inelastic demand The most extreme case of inelastic demand, in which changes in price have no effect on demand; this applies to products that people can't or won't live without. (Courtland L. Bovee, John V. Thill)

Pioneer advertising Advertising that tries to build primary, rather than selective, demand. (Courtland L. Bovee, John V. Thill)

Person specification
Definition #1 Person specification identifies the type of person the organization should be trying to recruit (character, aptitudes, educational or other qualifications, career aspirations etc.)
Definition #2
Person specification is a statement of the type of person to be recruited for a job.

Person specification - Roger's 7 point plan: 1) Physical attributes (neat appearance, ability to speak clearly, health), 2) Attainments (educational qualifications etc.), 3) General intelligence, 4) Special aptitudes (neat work, speed and accuracy, written communication skills etc.), 5) Interests (practical, social, intellectual and physical), 6) Disposition (or manner, e.g. friendly, helpful), 7) Background circumstances.

Person specification - J. Munri Fraser's 5 point pattern of personality: 1) impact on others, 2) acquired knowledge or qualifications, 3) innate ability, 4) motivation, and 5) adjustment and emotional balance.

Also see Recruitment, Job specification.

Personal competence (for managers): 1. Planning: 1.1 To plan to the achievement of results, 1.2 To pursuit of excellence, for themselves, for the organization, the staff and suppliers. 1.3 To monitor outcomes against the plan and to respond appropriately. 2. Managing others: 2.1 To be sensitive to the needs of the staff and superior (good interpersonal skills), 2.2 To be able to present themselves positively and professionally, 3. Managing oneself: 3.1 To demonstrate self-confidence, self-motivation, enthusiasm and personal drive, to control personal emotions and manage stress, 3.2 To learn and to develop, 4. Intellectual capabilities (competencies): 4.1 To be able to use their intellect effectively (to collect relevant information, to identify and apply concepts, to use their initiative), 4.2 To understand the culture of the organization and to help it to adapt to change.

Personal development: 1) Additional occupation training, 2) Professional qualification, 3) On-the-job experience, 4) Clarification/discussion with superiors.

Personal development plans (PDPs) are essentially action plans for people's career development which put the onus on them - the individual employees - to seek and organize training.

Personal effectiveness
Developing a strategy for personal improvement
: 1. Review the current situation: 1.1 Personal strengths and weaknesses, 1.2 Investigation of organizational skills and systems, communication ability and procedures. 2. Objectives: 2.1 Conjunction with superiors, 2.2 SMART, 2.3 Identifying best way forward. 3. Strategies (two possibilities): 3.1 Improving existing skills, and/or 3.2 Developing new skills; 4. Possible methods: 4.1 Training, 4.2 Additional training, learning to formal qualifications, 4.3 Delegation and more assistance from superiors, 4.4 Discussions with superiors (clearness one's own obligations and objectives)

Also see Manager's characteristics, Management skills assessing, Learning, On-the-job training, Learning contract, Time management, Delegation, Meetings.

Personal influence The effect of statements made by one person on another's attitude or probability of purchase. (Philip Kotler)

Personal selling
Definition #1. Personal selling is the oral presentation in a conversation with one or more prospec-tive purchasers for the purpose of making sales. (Philip Kotler)
Definition #2. Personal selling is the process of achieving mutually profitable economic exchanges between buyer and seller, based on inter-personal contact between buyer and seller, and on the seller's persuasive communication of his product or service qualities and benefits to the buyer.

Personal selling mix: 1) Sales presentations, 2) Sales meetings, 3) Incentive programs, 4) Samples and 5) Fairs and trade shows.

The primary purposes of personal selling: 1) To find prospects, 2) To convince prospect to buy, 3) To keep existing customers satisfied.

The stages of personal selling process: 1) Prospecting and evaluating (potential customers and acceptable prospects), 2) Preparation (prospect's specific product needs, current brands being used, available brands and personal characteristics), 3) Approach (contacting the prospect), 4) Presentation (holding prospect's attention, stimulate interest, develop desire for the product), 5) Objections (overcoming ones), 6) Closing (asking the prospect to buy), 7) Follow up (post-sale services).

Functions of personal selling: 1) Pre-negotiatory (finding potential buyers, discovering latent needs, producing feed back resulting in creating of satisfactory products); 2) Negotiatory, (persuasively presenting product and negotiating mutually agreeable prices and terms of sale, efficient sales administration, providing technical back-up service); 3) Post-negotiatory (providing after sales service, forecasting future sales, maintaining relationships)

The role of the salesperson involves more than merely selling: it includes communicating with customers in the wider sense and market research.

Basic methods of compensating sales persons: 1) Straight salary - advantages: (i) maximum security, (ii) large degree of control, (iii) easy to administer, (iv) predictable selling expenses; disadvantages: (i) lack of incentive, (ii) the necessity of close supervision, (iii) declining of selling expenses level; 2) Straight commission - advantages: (i) maximum amount of incentive, the ability to encourage salespeople to sell certain items by increasing the commission rate on these items, disadvantages: (i) lack of control over the sales force, (ii) the possibility of inadequate service to smaller accounts, (iii) decreased predictability of selling expenses; 3) Combination - advantages: (i) certain level of financial security, (ii) some degree of incentive, (iii) fluctuation selling expenses with sales revenue; disadvantages: (i) unpredictable sales expenses, (ii) difficulties in administration.

The forms of communication using in personal selling: 1) Language communication, 2) Kinetic communication (body language), 3) Proxemics communication (varying the physical space between the parties involved in communication), and 4) Tactile communication (involves touching, such as hand shaking).

Sources of prospects: 1) Company sales records, 2) Trade shows, 3) Referrals, 4) Newspaper announcements, 5) Public records, 6) Telephone directories, 7) Trade associations, 8) Direct mail lists.

The general characteristics of a good salesperson: 1) A good level of product knowledge, 2) Previous experience, 3) A pleasant personality, 4) The ability to persuade, 5) The ability to communicate with variety of individuals, 6) A high level of motivation, 7) A clean and tidy appearance, 8) Negotiation skills, 9) Presentation skills, 10) Initiative, 11) Ambition, 12) Confidence.

See also Selling process, Support and attributes of international salespersons.

Personality is the total pattern of characteristic ways of thinking, feeling and behaving that constitute an individual's distinctive method of relating to the environment; affected by childhood, schooling, genetic endowments etc.

Elements of personality (Eysenck): 1) Personality traits, 2) Trait clusters, 3) Types.

Types of human beings: 1. The 'E' dimension: 1.2 Extrovert traits (expressiveness, impulsiveness, risk-taking, sociability, practicality, irresponsibility, activity). 1.2 Introvert traits (inactivity, carefulness, responsibility, control, reflectiveness, unsociability, inhibition. 2. The 'N' dimension: 2.1 Neuroticism traits (anxiety, guilt, obsessiveness, hypochondria, unhappiness, lack of autonomy, low self-esteem and instability), 2.2 Stability traits (calm, freedom from guilt, casualness, sense of health, happiness, autonomy, self-esteem).

Persuasive advertising Advertising used to build selective demand for a brand by persuading consumers that it offers the best quality for their money. (Philip Kotler)

PEST factors Factors in an organization's environment (political-legal, economic, social-cultural, technological).
Also see Environment.

Phillips curve is a curve depicting a relationship between the level of unemployment and inflation in prices or wages.

Physical distribution (Logistics) The tasks involved in planning, implementing, and controlling the physical flow of materials and final goods from points of origin to points of use to meet the needs of customers at a profit. (Philip Kotler)

Physical distribution firms :
Warehouse, transportation, and other firms that help a company to stock and move goods from their points of origin to their destinations.

Logistics involves: 1. Order processing; 2. Transportation; 3. Stock management; 4. Warehousing; and 5. Customer services.

The choice of warehouse within an area will depend on : (i) the sites available; (ii) whether the customer will come to the supplier, or whether the supplier will deliver to the customer; (iii) local transport facilities (road, rail, etc); (iv) future development in the area; (v) whether a lease or a freehold is required; (vi) its geographical position within the market area.

Distribution costs are affected by the following factors : (a) Transport costs: higher in overseas markets owing to distance and, in poorer countries, low quality physical infrastructure. A greater variety of transport modes are used. (b) Warehousing: more sites might be needed in regional centers. (c) Stock levels will be higher, as distances are longer, from the manufacturer. (d) Order processing might include customs and VAT documentation. (e) Packaging: some adjustment might be needed. (f) Failure costs include lost sales through lack of available time. Customers in some markets (e.g. Germany) are very unforgiving if time and quality specifications are not met.

See also Distribution channel.

Physical evidence is marketing mix element for services denoting the environment in which service is delivered (e.g. seating comfort and lighting in restaurant).

Pilot is a trial undertaken on a modest scale in order to test the feasibility of something much bigger.

PIMS Profit impact of marketing strategies.

Placement Marketing of a product by its appearance or use in a movie or television show. (Responsive Database Services, Inc.)

Place Element of the marketing mix detailing how the product/service is supplied to the customer (distribution).

Planned obsolescence A strategy of causing products to become obsolete before they actually need replacement. (Philip Kotler)

Definition #1. Planning is the establishment of objectives, and the formulation, evaluation and selection of the policies, strategies, tactics and action required the achieving them. Planning comprises long-term/strategic planning, and short-term operation planning. The latter is usually for a period of one year.
Definition #2. Planning is the regular, systematic, customer-centered and controlled series of activities a company will undertake to meet business objectives, secure long-term profitability and realize its product/market strategy effectively and competitively.
Definition #3. Planning (SOSTAC) is a process of answering three basic questions: 1) Where are we now? (Situation analysis), 2) Where do we want to go - broad direction? (Objectives), 3) How do we get there? (Strategies), 4. How do we get there - individual steps? (Tactics); 5. How do we ensure arrival? (Actions); 6. How do we know when we have arrived? - (Control).

Marketing planning process: 1) Business mission (Purpose, Strategy, Standards and behaviors, Company values), 2) Marketing audit (Microenvironment, The market, Competition; Operating results, Strategic issues analysis, Marketing mix effectiveness, Marketing structures, Marketing systems), 3) SWOT analysis, 4) Generation and evaluation of strategic options (For increasing sales: Market penetration, Market expansion, Product development, Market development; Entry into new markets; For Improving profitability: Reduce costs, Rationalize operations, Increase prices), 5) Marketing objectives (Strategic thrust), Strategic objectives: Build, Hold, Harvest, Divest), 6) Core strategy (Target markets; Competitive advantage: Being better, Being faster, Being closer ; Competitors targets), 7) Marketing mix decisions, 8) Organization and implementation, 9) Control.

The marketing plan should include: 1) sales target; 2) total marketing budget analyzed (including (a) salaries, (b) above the line expenditure [advertising], below the line expenditure [sales promotion, price reduction, allowances etc.]); 3) the marketing mix; 4) the allocation of expenditure to products.

Smith's SOSTT-4Ms mnemonic elaborates of planning: (a) External analysis: 1) Situation, 2) Objectives, 3) Strategy, 4) Tactics, 5) Targets; (b) Internal analysis: 6) Men, 7) Money, 8) Minutes, 9) Measurement.

Planning cycle : 1) Examination of the marketplace: (i) External (sales trends, levels of competition, product development, promotional activity, patterns of consumption), (ii) Internal (brand share, product advantages, promotional activity, patterns of consumption); 2) Development of objectives and strategies: (i) Objectives (sales, market share, consumer purchasing), (ii) Strategies (7 P's); 3) Evaluation stage: (i) panel research, (ii) tracking studies, (iii) sales measures.

Tactical planning Planning the utilization of resources to achieve specific objectives in the most effective and efficient way.

Strategic planning is the formulation, evaluation and selection of strategies for the purpose of preparing a long-term plan of action to attain objectives. Also known as corporate planning and long range planning.

Levels of planning (from high details to high scope):
1) Operations and transactions - now (What operations should be performed with existing facilities to meet the specified output requirements in the next operational period?),
2) Operational planning - 1-12 months (What is the best position/marketing etc. plan to meet objectives? What materials, facilities are needed for operations? What is the best method of organizing operations?); Marketing and selling decisions: Pricing, including discounting, Competitor tracking, Customer research, Consumer research, Distribution channels and logistical choices, Sales and marketing budgets and sub-budgets, e.g. promotion/advertising, Database management.
3) Tactical planning - 1-5 years (What products should be added or deleted? What capital investment or divestment is necessary to meet strategic plans? What is best pricing pattern? What new facilities, systems or methods are needed to meet strategic plans?); Marketing and selling decisions: Setting short term prices, Discounting, Promotional campaigns, Advertising, Distribution, Product service levels, Customer service levels, Packaging, Planning sales territories, Short-term agency agreements.
4) Strategic planning - 5 years + (What business should the organization be in? How should the organization be structured? How should resources be allocated?) Marketing and selling decisions: Product/market decisions, Product life cycles, Product development, Entry into new markets, Investment in new technology to provide better information, Database development.

Also see Central planning, Communications strategy and planning, International marketing planning, Resource planning, Simon Majaro's planning hierarchy, SOSTAC.

Planning horizon is the furthest time ahead for which plans can be quantified. It need not be the planning period.

Pleasing products Products that give high immediate satisfaction but may hurt consumers in the long run. (Philip Kotler)

Point-of-purchase Advertising that targets shoppers within the retail environment. Often aimed at impulse purchases. POP includes counter displays, window displays, store banners, aisle displays, etc. (Responsive Database Services, Inc)

Point-of-purchase promotions Displays and demonstrations that take place at the point of purchase or sale. (Philip Kotler)

Point of sale materials : 1) Outside signs, 2) Window displays, 3) Counter pieces, 4) Display racks, 5) Self-service cartons.

Policies General statements providing guidelines to managers.

Political advertising Advertising whose central focus is the marketing of ideas, attitudes, and concerns about public issues, including political concepts and political candidates. In political advertising, the product is either a person or philosophy rather than goods and services. (Responsive Database Services, Inc)

Political environment embraces the activities of the state in setting national objectives, legislating, policy making and implementation.

Also see Privatization, Deregulation, Enterprise culture, Social chapter, Party manifesto, First past the post, Electoral cycle.

Political risk is the risk that political action will affect the position and value of a company.
Exposure to political risk:
1. The actions of legitimate government authorities: 1.1 Total or partial expropriation, 1.2 Forced divestiture, 1.3 Confiscation, 1.4 Cancellation or unfair calling of performance bonds, 1.5 Nonapplicability of "national treatment", 1.6 Restriction in access to financial, labor, or material markets, 1.7 Controls on prices, outputs, or activities, 1.8 Currency and remittance restrictions, 1.9 Value-added and export performance requirements;
2. Events caused by factors outside the control of government: 2.1 War, 2.2 Revolution, 2.3 Terrorism, 2.4 Strikes, 2.5 Extortion, 2.6 Nationalistic buyers or suppliers, 2.7 Threats and disruption to operations by hostile groups, 2.8 Externally induced financial constraints, 2.9 Externally imposed limits on imports or exports.

Polycentrism Subsidiaries are established in overseas markets, with their own objectives, strategies, plans, promotional budgets etc.

Population is all those people who have the characteristics in which the researcher is interested.

Trends of the population: 1) The context of word population, 2) Development as against less-developed country growth rates, 3) The age and gender structure of a population, 4) The age and gender structure of a population, 5) Its distribution by region and locality, 6) Migration within and between national borders.

The implications of population trends to the marketer: 1) The demand size, the size of different market segments, 2) Supply side, the availability of labor, 3) Mix of public services required, 4) Taxation impact of the dependent population, 5) Aggregate spending and its distribution.

Population structure: 1) Age, 2) Gender, 3) Marital status, 4) Region, 5) Region, 6) Ethnic group, 7) Occupation.

Porter's competitive forces see Structural analysis.

Porter's generic strategies see Generic strategies.

Position refers to the place where the advertisement is shown.

Position audit Part of the planning process which examines the current state of the entity in respect of: (1) resources of tangible and intangible assets and finance; (2) products, brands and markets; (3) operating systems such as production and distribution; (4) internal organization; (5) current results; (6) returns to stockholders.

Positioning see Market positioning.

Postal research questionnaires are sent to respondents for self-completion using postal services or other appropriate means of distribution.

Questionnaire design process: 1) Clear purpose, 2) Careful selection of target group and/or sample, 3) Avoiding bias, 4) No difficult and long questions, 5) Unambiguous questions, 6) Not-providing too many choices, 7) Relatively short questionnaire, 8) Analyze non-responses, 9) Making sure responses are representative of the whole sample, 10) Use of some open questions, 11) Thinking about data processing and analyzing, 12) Balancing cost and benefits, 13) Always testing pilot questionnaire.

Also see Questionnaire and Interview.

Potential market is the set of consumers who prodess some level of interest in a particular product or service. (Philip Kotler)

Power is the ability (as opposed to the right) to do something, or stop something being done; power can be physical, based on access to resources, derived from formal position, derived from expertise, or personality, or the ability to disrupt (negative power).

PR See Public relations.

Predatory pricing The practice of lowering prices to a point where they inflict financial damage on competitors; the extreme case of predatory pricing seeks to drive competitors out of business entirely, and it is illegal. (Courtland L. Bovee, John V. Thill)

Premium-luxury products Highest-priced product or service in the competitive marketplace. (Responsive Database Services, Inc)

Premiums Goods offered either free or at low cost as an incentive to buy a product. (Philip Kotler)

Present value is the cash equivalent now of a sum receivable or payable at a future date.

Presentation. 1) Planning. Why are you saying it? 2) Purpose. To whom are you saying it? 3) Audience. What are you going to saying? 4) Structure. How are you going to say? Style. Also: 5) Timing, 6) Expectation, 7) Speaker, 8) Resources, 9) Layout, 10) Audience interaction.

Presentation structure: 1. Introduction - Good morning, and thank you for inviting me to this presentation. As you know I have been asked to prepare a presentation on the subject of direct marketing. I will use overhead projector to illustrate key issues and would appreciate it if you could ask questions at the and of the presentation. Thank you." 2. Content. 3. Summary - Within the limited time available I trust that I have highlighted the key issues pertaining to the & Thank you very much for you time and attention. If you have any questions I will be happy to try to answer them.

Presentation plan: 1.Title, 2. Equipment needed, 3. Aim/objective, 4. Beginning of presentation: 4.1 Time of opening, 4.2 Approach, 5. Middle: 5.1 Key points, 5.2 Visual aids.

Linking words or phrases of presentation: 1. Conclusion: 1.1 This has led to ..., 1.2 Therefore ..., 1.3 So ..., 1.4 As result ...; 2. Contradiction: 2.1 However ..., 2.2 But ..., 2.3 On the other hand ...; 3. Confirmation: 3.1 Similarly ..., 3.2 Again; 4. Building on the previous point - Moreover.

Press conferences Gatherings of media representatives for an announcement. (Courtland L. Bovee, John V. Thill)

Press release A short document, also called a news release, that outlines some newsworthy event or activity and that companies send to reporters and editors with the hope of getting press coverage; press releases for television are often done on videotape. (Courtland L. Bovee, John V. Thill)

Pressure group Group of people who have got together to promote a particular cause (e.g. nuclear disarmament). Sometimes called a cause group. However also used to mean any interest group.

Pressure groups are composed of people with common interests or attitudes who seek to influence relevant decision makers to act on their concerns: 1) Welfare (Age Concern, RSPCA, Action on Smoking & Health), 2) Recreation (National Cyclists. Union, Ramblers Association), 3) Cultural (Citizen's Advice Bureau, Lord's Day Observance Society), 4) Environmental (Conservation Society, Noise Abatement Society, AA), 5) Political (Tenants association, Campaign against Racial Discrimination), 6) International (Oxfam, Anti-Apartheid movement, Save the Children Fund).

Characteristics of pressure groups: 1) Specific common interests or attitudes, 2) Own special purpose, 3) Influence the context of government decisions, 4) Are not political parties.

Actions of pressure groups: 1) Complain, 2) Inform and persuade, 4) Debate and challenge, 5) Canvas and opinion form, 6) March and demonstrate, 7) Demand and negotiate.

Formal channels of pressure: 1) Pressure through government, 2) Pressure through parliament, 4) Pressure through public campaign.

Prestige pricing A technique that attempts to use a high price to establish an image of quality or exclusivity. (Courtland L. Bovee, John V. Thill)

Price The amount of money charged for a product or service, or the sum of the values consumers exchange for the benefits of having or using the product or service. (Philip Kotler)
Element of the marketing mix.
Pricing factors: 1. Cost - 1.1 Variable cost, 1.2 Fixed cost, 1.3 Markup; 2. Competition - 2.1 Direct competitors, 2.2 Lower-price segments of the market, 2.3 Substitutes from other industries; 3. Customer - 3.1 Price expectations, 3.2 Fair/just price, 3.3 Past prices, 3.4 Quality perceptions.
See also Pricing policies.

Price adjustment strategies see Pricing policies.

Price discrimination is the practice of charging different prices for the same product to different groups of buyers when those prices are not reflective of cost differences.

Price elasticity is a measure of the extent of change in market demand for a product in response to a change in its price.

Price elasticity of demand is a measure of the responsiveness of demand to changes in price: the percentage change in the quantity of a good demanded, divided by the percentage change in its price.
Demand is less price sensitive when...
(i) ... the product is more unique - Unique value effect
(ii) ... customers are less aware of substitutes - Substitute awareness effect
(iii) ... customers cannot easily compare the quality of substitutes- Difficult comparison effect
(iv) ... the expenditure (price) is low compared to customers' income - Total expenditure effect
(v) ... the expenditure (price) is low compared to total cost of the project - End benefit effect
(vi) ... the product is assumed to have more quality, prestige, etc. - Price quality effect (vii) ... customers cannot store the product - Inventory effect

Price elasticity of supply is a measure of the responsiveness of the quantity supplied of a good to changes in its price: the percentage change in the quantity supplied divided by the percentage change in price.

Price fixing An illegal collaboration between two or more competitors who agree on the prices they II charge for products in the same category. (Courtland L. Bovee, John V. Thill)

Price leader Indicates to other firms in the market what a price will be.

Price mechanism is the way in which prices act as signals which co-ordinate the actions of economic agents in a free market economic system.

Price lining The establishment of a limited number of price levels that cover an entire product line. (Courtland L. Bovee, John V. Thill)

Pricing research is a form of Marketing research, which includes studies of price sensitivity and price perception.

The key stages in the pricing research: 1. Definition of the information required: 1.1 Costing information (raw materials, cost of production, distribution and warehousing, etc.); 1.2 Competitors' prices and discounts given to distributors; 1.3 The price the consumer would be willing to pay; 2. Identification of the sources of information and how that information is to be obtained: 2.1 Costing - accounts department; 2.2 Competitive prices and details of special offers are available from Retail audits or via our sales force; 2.3 Customers - marketing research (Hall test, Telephone research or Instore trials); 3. Collection of data: 4. Analysis of the data; 5. Conclusions and recommendations.

Price sensitivity An indication of the effect price has on buyers' intentions to purchase a given product or class of product; if buyers are considered price sensitive, changes in price will cause definite changes in their buying behavior. (Courtland L. Bovee, John V. Thill)

Price packs (cents-offdeals) Reduced prices that are marked by the producer directly on label or package. (Philip Kotler)

Price war is a systematic reduction in the price of a good or service by two or more competing firms, often occurring after the breakdown of an agreement.

Prices and incomes policy is a policy which aims to restrain both prices and incomes.

Pricing approaches: 1) Full cost plus pricing, 2) Marginal cost plus pricing/mark-up pricing, 3) Minimum pricing, 4) Limiting factor pricing, 5) Demand-based pricing.

Pricing policies (pricing strategies):

1. New product pricing strategies:
1.1 Market penetration pricing is a pricing policy of low prices when the product is first launched in order to obtain sufficient penetration into the market. Circumstances for market penetration pricing: 1) Discouraging new entrants into the market, 2) shorting the initial period of the product life cycle, 3) Significant economies of scale, 4) Highly elastic demand.

1.2 Market skimming is a pricing policy of charging high prices when a product is first launched and spending heavily on advertising and sales promotion to obtain sales. Progressively lower prices are charged as the product moves into the late stages of its life cycle. The profitable cream is therefore skimmed off in stages until sales can only be sustained at lower prices.
Circumstances for market penetration pricing: 1) New and different product; 2) Unknown demand characteristics; 3) High prices might generate high initial cash flows; 4) Different market segments; 5) Short product life cycle.

1.3 Average price strategy is a pricing strategy based on setting prices, which are average for the industry.

2. Product mix pricing strategies:
Product line pricing involves developing a product line in which each successive item in the line offers more features/higher quality for a higher price.

2.2 Optional product pricing involves selling optional or accessory products along with a main product.

2.3 Captive product pricing involves selling products that must be used along with a main product.

2.4 By-product pricing involves accepting any price for a low value by-product that covers more than the cost of storing and delivering it.

2.5 Product bundle pricing involves combining several products and offering the whole bundle at a reduced price.

3. Price adjustment strategies:
3.1 Discount pricing and allowances: 3.1.1 Cash discount is a price reduction for buyers who pay their bills promptly; 3.1.2 Quantity discount is a price reduction for buyers who buy large volumes; 3.1.3 Trade discount (Functional discount) is a price reduction given to an intermediary for performing certain functions such a storage; 3.1.4 Seasonal Discount is a price reduction for buyers who buy products or services out of season; 3.1.5 Allowances include trade in allowances and promotional allowances.

3.2 Discriminatory pricing: 3.2.1 Negotiation with individual customer, 3.2.2 On the basis of quantities purchased, 3.2.3 By time, 3.2.4 By location, 3.2.5 By product type.

3.3 Psychological pricing considers the psychology of prices and not simply the economies.

3.4 Promotional pricing involves temporary pricing products below list price, and sometimes below cost, to increase short-run sales: 3.4.1 Loss leader are used to attract customers to supermarkets and department sores in the hope that they will buy other goods at normal mark-up, 3.4.2 Special event pricing might be used in certain seasons. 3.4.3 Cash rebates are offered to consumers who buy the product from dealers within a specified time. 3.4.4 Discounts may be offered, 3.4.5 Geographical pricing strategies cover different freight charging strategies.

Necessary data to pricing decisions: 1) Cost data, 2) Demand data, 3) Competitor data (also see Sources of information about competitors).

Primary data In market research, this is data collected specifically for the study under consideration (e.g. by questionnaire).

Primary demand The level of total demand for all brands of a given product or service. For example, the total de-mand for motorcycles. (Philip Kotler)

Primary/connected stakeholders see Stakeholders.

Principal budget factor see Budget.

Print ad coupons Coupons that appear in print sources, such as magazines and newspapers. (Responsive Database Services, Inc)

Print advertising Discussions of print advertising in general, including both magazine and newspaper advertising. (Responsive Database Services, Inc)

Privatization Policy to transfer economic activities to private ownership and control, including the sale of shares (51% or more) in previous nationalized industries to private individuals and institutions, contracting out of publicly funded services to private companies, and the sale of public housing.

Private brand A brand that is designated, owned, and used by a wholesaler or retailer. (Courtland L. Bovee, John V. Thill)

Private sector is the part of the economy in which productive activity is carried out by privately owned/run enterprises and includes the household and personal sector as well as businesses.

Private of contract is the relation between two contracting parties which allows either to sue the other for breach.

Proactive marketing A marketing style in which organizations take steps to change the marketing environment so that it will be more conducive to their needs. (Courtland L. Bovee, John V. Thill)

Probability is best estimate of the outcome of each decision alternative.

Problem children see Boston classification.

Problem classification matrix
Specific projects such as launching new product, conquest of new markets, international join ventures, etc., require different level of analysis. The corresponding depth and degree of detail of the analysis should be determined according to the complexity of each problem, and the importance of the project for the company.

Importance of the project for the company   High     Medium     Low  
Novelty/complexity of the problem    
High   I     I     II  
Medium   I     II     III  
Low   II     III     IV  

This matrix must be interpreted as follows:
Type I requirements: 1.1 Very precise and comprehensive analysis of the market and the competition; 1.2 Detailed consideration of further strategic options; 1.3 Gradual refining of functional stages with checking or justification of underlying critical assumptions.
Type II requirements: 2.1 Thorough analysis and problems; 2.2 General consideration of the most important strategic alternatives; 2.3 Gradual refining of critical functional strategies.
Type III requirements: 3.1 Assessment and description of the problem relating to the project; 3.2 Drafting out the main concept. Type IV requirements: 4.1 Straightforward assessment of project conditions; 4.2 Preparation of a concept based on the most important or critical aspects only.

Procedure Chronological sequence of actions.

Process research Research into the ways goods/services are produced.

Processes Marketing mix element for services denoting how the service is actually delivered.

Producer markets see Organizational markets.

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organizations, and ideas. Element of the marketing mix: Anything that can be offered to a market that might satisfy a need or a want. It may be an object, a service, a place, an organization, or an ideal.

Dimensions of a product: 1. Basic product: 1.1 Material, 1.2 Components, 1.3 Are of usage, 1.4 Basic performance; 2. Features: 2.1 Quality, 2.2 Design, 2.3 Technological sophistication, 2.4 Reliability/durability; 3. Service: 3.1 Technological advice, 3.2 Installation, 3.3 Maintenance, 3.4 Repair.

Product type: I. Consumer: 1) Convince products; 2) Shopping product; 3) Specialty product; 4) Unsought product. II. Industrial: 1) Raw materials; 2) Major equipment; 3) Accessory equipment; 4) Components parts; 5) Process materials; 6) Customer supplies; 7) Industrial services.

Product modifications: 1) Quality modifications. That relate to a problems dependability and durability and usually are executed by alterations in the materials or production process employed. 2) Functional modifications are changes that affect a product versatility, effectiveness convenience, or safety. 3) Style modifications are changes in the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics.

Company's product mix (or Product assortment or Product portfolio) is all the product lines and items that the company offers for sale.

Augmented Product Concept (Levitt and Kotler):
1. Core product - The problem-solving services or core benefits that consumers are really buying when they obtain a product.;
2. Actual product;
3. Augmented product (The expected products plus all of their added value): 3.1 Brand name, 3.2 Delivery, 3.3 After-sales service.

See also New product and Choice criteria.

See below Product advertising, Product class, Product concepts, Product cost, Product form, Product liability, Product life cycle, Product line, Product mix pricing strategies, Product position, Product quality, Product research, Product testing, Production concept and Production efficiency

Product advertising Advertising that promotes specific goods and services while promoting the supplying company to a lesser degree or not at all. (Courtland L. Bovee, John V. Thill)

Product class (generic product) is a broad category of product (e.g. cars, washing machines, newspapers).

Product cost see Overheads/costs/expenses.

Product concepts The idea that consumers favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements. A detailed version of the new-product idea stated in meaningful consumer terms. (Philip Kotler)

Product development A type of intense growth strategy that improves present products or develops new ones for the firm's current markets. (Courtland L. Bovee, John V. Thill)
Also see New product development.

Product form within a product class there are different forms that the product can take (e.g. five-door hatchback cares or two-seater sports cars, twin tub or front loading automatic washing machine, etc.)

Product liability refers to the legal obligation on companies to avoid acts or omissions that could have reasonably been expected to cause harm to consumers.

Product life cycle is a model which suggests that sales of a product grow and mature and then decline as the product becomes obsolete and customer demands change. Applicable in some cases (e.g. horse-drawn transportation) but perhaps less so in others (e.g. corn flakes); use with caution. It is defined in the CIMA Official Terminology as 'the pattern of demand for a product over lime'.

Stages of PLC: 1) Introduction Stage of the product life cycle; sometimes referred to as launch. Product sells in small volumes, and sales promotion is expensive. 2) Growth Stage of product life cycle characterized by increasing sales volumes, profitability and competition. 3) Maturity Stage of product life cycle characterized by relatively stable sales volumes and profitability. 4) Decline Stage of the product life cycle characterized by declining sales volumes and profits.

The strategic implication of the product life cycle:

1. Introduction (Development and launch: 1.1 Strategy - Aim to recover marketing expenditure in medium or long term; 1.2 Product  - 1.2.1 Initially, poor quality, 1.2.2 Product design and development are a key to success, 1.2.3 No standard product and frequent design changes; 1.3 Customers - 1.3.1 Initial customers willing to pay high prices, 1.3.2 Customers need to be convinced about buying; 1.4 Marketing and promotion - 1.4.1 Creating awareness - high advertising and sales promotion costs, 1.4.2 Heavy use of personal selling, 1.4.3 High prices possible; 1.5 Competition - Few or no competitors; 1.6 Price and Profit margin - 1.6.1 High prices but losses due to high fixed costs, 1.6.2 Skimming (premium pricing strategy - high price of a small group of consumers, 1.6.3 Or Penetration - for elastic demand. 1.6.4 Price - low - for attract consumers and acquire market share; 1.7 Manufacturing and distribution - 1.7.1 Overcapacity - High production costs, 1.7.2 Few distribution channels 1.7.3 High labor skill content in manufacture; 1.8 Critical success factor - Increasing time to launch; 1.9 Information needs - Market research; 1.10 Financial controls: 1.10.1 Strategic `milestones`, 1.10.2 Physical evaluation, 1.10.3 Timetables and benchmarks.

2. Growth: 2.1 Strategy - Retain distinctiveness of product and rising sales; 2.2 Product - 2.2.1 Competitor's product have market quality differences and technical differences, 2.2.2 Quality improves, 2.2.3 Product reliability may be important; 2.3 Customers - Customers increase in number; 2.4 Marketing and promotion - 2.4.1 Generating awareness and appreciation, 2.4.2 High advertising cost still, but as a % of sales, cost are falling, 2.4.3 Prices falling; 2.5 Competition - 2.5.1 More competitors enter the market, 2.5.2 Barriers to entry can be important; 2.6 Price and Profit margin - 2.6.1 High prices. 2.6.2 High contribution margins, and increasing profit margins, 2.6.3 High P/E ratios for quoted companies in the growth market, 2.6.4 Maximum profitability; 2.7 Manufacturing and distribution - 2.7.1 Undercapacity, 2.7.2 Move towards mass production and less reliance on skilled labor, 2.7.3 Distribution channels flourish and getting adequate distribution is a key to marketing to success; 2.8 Critical success factor: 2.8.1 Market share, 2.8.2 Sustaining competitive advantage; 2.9 Information needs: 2.9.1 Relative market share, 2.9.2 Overall market grown, 2.9.3 Diminishing returns, 2.9.4 Competitor marketing strategies; 2.10 Financial controls: 2.10.1 Discounted cash flow evaluation; 2.10.2 Market shares, 2.10.3 Marketing objectives.

3. Maturity: 3.1 Strategy - Preoccupation of deception market; 3.2 Product - Product become more standardized and differences between competing product less distinct; 3.3 Customers - 3.3.1 Mass market, 3.3.2 Market saturation, 3.3.3 Repeat-buying of product becomes significant. Brand image also important; 3.4 Marketing and promotion - 3.4.1 Markets become segmented, 3.4.2 Segmentation and extending the maturity phase of the life cycle can be key strategies, 3.4.3 A market expansion strategy - converting non-users into users, extending use, 3.4.4 New promotional mix; 3.5 Competition - Competition at its keenest: on prices, branding, servicing customers, packaging, etc.; 3.6 Price and Profit margin - 3.6.1 Falling prices but good profit margins to high sales volume, 3.6.2 High prices in some market segments, 3.6.3 Low cost position (developing a basic product, innovate product design, cheaper raw materials, innovate production procedure, low cost distribution, reducing overheads - downsizing labor and upgrading plant., 3.7 Manufacturing and distribution - 3.7.1 Optimum capacity, 3.7.2 Low labor skills, 3.7.3 Distribution channels fully development, but less successful channels might be cut, 3.8 Critical success factors: 3.8.1 Contribution per unit of limiting factor, 3.8.2 Customer retention; 3.9 Information needs: 3.9.1 Comparative competitor costs, 3.9.2 Limiting factors; 3.10 Financial controls: 3.10.1 Return on capital employed, 3.10.2 Profit margin, 3.10.3 Maintaining market share.

4. Decline: 4.1 Strategy - Five options: 4.1.1Divestment or liquidation; 4.1.2 Harvesting; 4.1.3 Maintenance; 4.1.4 Profitable survivor; 4.1.5 Niche; 4.2 Product - 4.2.1 Product even less differentiated, 4.2.2 Quality becomes more variable; 4.3 Customers - Customers - sophisticated - buyers of a product they understand well; 4.4 Marketing and promotion - Less money spend on advertising and sales promotion; 4.5 Competition - 4.5.1 Competitors gradually exit from the market, 4.5.2 Exit barriers can be important; 4.6 Price and Profit margin - 4.6.1 Still low prices but falling profits as sales volume falls, since total contribution falls towards the level of fixed costs. 4.6.2 Some increases in prices may occur in the late decline stage; 4.7 Manufacturing and distribution - 4.7.1 Overcapacity because mass production techniques still used, 4.7.2 Distribution channels dwindling; 4.8 Critical success factor - Timely exit; 4.9. Information needs: 4.9.1 Rate of decline, 4.9.2 Best time to leave, 4.9.3 Reliable values of assets; 4.10 Financial controls: 4.10.1 Free cash flows, 4.10.2 Opportunity costing.

Product mix pricing strategies see Pricing policies.

Product position The way the product is defined by consumers on impor-tant attributes-the place the product oc-cupies in consumers' minds relative to competing products. (Philip Kotler)

Product quality The ability of a product to perform its functions; it includes the product's overall durability, reliability, precision, ease of operation and repair, and other valued attributes. (Philip Kotler)

Product research attempts to make product development customer orientated. Product research includes product life cycle research and product testing.

See also Adoptions process.

Also see product, sources of new product ideas, product life cycle, product class, product form.

Product line A group of products that are closely related either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. (Philip Kotler)

Product-line featuring Selecting one or a few items in a product line to feature.

Product-line filling Increasing the product line by adding more items within the present range of the line.

Product-line pricing Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitor's prices.

Product line-stretching Increasing the product line by lengthening it beyond its current range.

Product testing is the evaluation and development of the product themselves from marketing point of view.

Product test design: 1. Management information required; 2. The market in which the product will be sold; 3. The type of product being tested: 3.1 How new the product is to users, 3.2 How easy the product can be assessed by users, 3.3 How mach information consumers gather before selecting a product; 4. The availability of time and finance, 5. The need for standardization of the procedures across a wide range of products.

Differences between product testes center: 1. Sample size; 2. The type of people used as testers (current users of brand, potential users of product, etc.); 3. The type of test given to testers: 3.1 Monadic, 3.2 Comparative, 3.3 Sequential, 3.4 Conjoint; 4. The analysis techniques used on the collected data.

Production efficiency Production of a good is efficient in an economy if, for a given level of output of all other goods, and given the resources and technology available, the maximum possible quantity of the good is produced.

Productivity is the productivity of labor is indicated by its average product, measured at the level of the firm, the sector of the economy or the whole economy. Labor productivity can be defined as the output per worker in a given period of time.

Production concept The philosophy that consumers favor products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiency. (Philip Kotler)

Professional advertising Advertising that targets members of a profession such as law, medicine, engineering, architecture. (Responsive Database Services, Inc)

Profit and loss account is an account which shows the gross profit or loss generated by an entity for a period (trading account) and after adding other income and deducting various expenses shows the profit or loss of the business (the profit and loss account). The two accounts are usually combined, particularly by companies.

Also see Distribution and selling expenses and Administration expenses.

Profit center is a part of a business accountable for costs and revenues. In profit centers, managers are responsible for both cost and revenues and are accountable for the performance overall. Their profit center may be regarded as a strategic business unit but may take the form of a subsidiary company or simply a core activity if the activity is recharged across the rest of the organization.

Profit margin a ratio used to measure how efficiently the operations of a business have been managed. Profit margin = (Profit before interest and tax / Sales) %

Profit orientated organization Organization whose primary goal is to make a profit for owners.

Profitability is the rate of return on capital or the excess of revenue over total cost of production.

Profitability control Evaluation and corrective action to assure the profitabil-ity of various products, territories, customer groups, trade channels, and order sizes. (Philip Kotler)

Strategies of maintaining or improving profitability: 1) Product differentiation to steepen demand curve, 2) Cartel, 3) Merger and acquisition for cost economies and minimization, 4) Focus, 5) Continuous innovation.

Project an undertaking that has a beginning and an end, and is carried out to meet established goals within cost, schedule and quality objectives (Haynes). A project: 1) has specific start and end points; 2) has a well defined objective; 3) is self-contained or a 'one-off'; 4) often cuts across functional boundaries; 5) usually contains cost and time schedules for the duration of the project and performance specifications for the end results.

Project life cycle: 1) Conceiving and defining the project, 2) Planning the project, 3) Implementation and control, 4) Completion and evaluation (post-audit).

Projective techniques (of motivation research) are research techniques which draw out attitudes, opinions and motives from individuals in response to given stimuli.

Projective techniques: 1) Inkblot tests, 2) Third person, 3) Word association, 4) Sentence completion, 5) Thematic apperception tests, 6) Story completion, 7) Cartoons completion, 8) Psychodrama.

Problems of projective research techniques: 1) Lack of evidence of validity, 2) Small samples, 3) High subjectivism and prone to bias, 4) Developed not for the study of marketing or consumer behavior, 5) Ethical problems.

Promotion Element of the marketing mix which includes all communications with the customer, thus including advertising, publicity, PR, sales promotion etc.

Factors affecting the selection of promotional methods : 1. The promotional objectives for this market; 2. Cultural constraints; 3. Legal constraints; 4. Facilities available for promotional effort in the market; 5. Economic development; 6. Distribution infrastructure; 7. Media availability; 8. Competition.

Promotions industry structure
1) Agencies
(In-house, Full service agencies, Creative shops, Media independents, A la carte). Although these still tend to be called advertising agencies they do in fact provide a wide range not only of promotional services but also marketing services. The main ones include:
(i) the planning of campaigns;
(ii) the design of creative components;
(iii) the scheduling and buying of media;
(iv) the buying and integration of other pro national materials;
(v) the administration and accountancy for the process;
(vi) the implementation of campaigns; (vii) the monitoring and evaluation of the results.
In effect an agency acts as an additional resource to the client company's own marketing resources. Also see Advertising agency.
2) Clients. These are properly known as the 'advertiser' and are really the lynchpin in the whole structure. Their role is a very obvious one which can be summarized as:
(i) providing the original need for the campaign;
(ii) selecting and briefing the agency;
(iii) discussing and agreeing campaign plans;
(iv) integrating the promotional planning into marketing planning;
(v) evaluating and controlling the campaign;
(vi) financing the whole process.
3) Media suppliers. The media suppliers consist of the commercial television companies, commercial radio companies, newspapers and magazine owners, poster companies and a whole variety of new media owners. For example, Manchester United Football Club, who feature the brand name of Sharp on their strips can be regarded as a media supplier.
4) Suppliers of promotional materials. A vast range of other specialist suppliers exists, from printers to producers of promotional gifts, from exhibition organizers to organizers of corporate hospitality. These specialist services are provided cost effectively and are bought directly by client companies or managed through advertising agencies.

Promotion recently changes: 1) Print industry (investment - no longer a barrier to entry), 2) Television (Satellite and cable), 3) Internet.

See also Sales promotion.

See below Promotion objectives, Promotional allowance, Promotional mix, Promotional budget and Promotional pricing.

Promotional allowance A payment or price reduction to reward dealers for participating in advertising and sales-support programs. (Philip Kotler)

Promotional mix:
A Traditional components: 1) Advertising, 2) Personal selling, 3) Public Relations, 4) Sales Promotion;
B Additional components: 5) Direct marketing, 6) Internal marketing, 7) Merchandising, 8) Packaging, 9) Sponsorship, 10) Branding, 11) Exhibitions, 12) Corporate image, 13) Customer Service, 14) Word of mouth.

Promotion objectives : 1) Increase market share: (i) Awareness within target audience, (ii) Communication of brand values to the target, (iii) Generation feedback points; 2) Introducing new products; 3) Brand recognition (through brand awareness), 4) Establishing the values attached to the brand, 5) Distribution (demonstration the easy availability of product).

Promotional budget is the total amount of money that a marketer allocates for advertising over a period of time.

The factors affecting the timing of promotion: 1) Optimal period, 2) Seasonally, 3) Burst- and Drip-campaign.

The factors affecting the size of the promotional budget: 1) Geographic market, 2) Type of product (industrial, consumer durable or consumer convenience items), 3) Distribution of buyers, 4) External factors (competitors' promotional budgets, etc.), 5) Other factors (last year promotion budget, last year sales, etc.)

Methods of promotion budgeting:
1. Affordable approach (last year sales + %) is production-oriented method which relies on calculating gross margins, determining required net profit, taking out all other costs and expenses and then what is left is the advertising budget. Advantage - Financial situation is under control. Disadvantages - No reference to reality and there is no scope to change as market conditions change, Ignoring the effect of advertising on demand.
2. The objective and task approach (what the job requires - best method) - the objectives are looked at first and then the funds required to meet them are calculated. Advantage - The assurance that all eventualities have been built into budget. Disadvantage - The objectives and tasks must be very detailed and accurate. See more.
3. Competitive parity (what our competitors spend) uses the competition as a benchmark, in the sense that the more the competition spend then the more their competitors are forced to spend. Disadvantages: Necessity of detailed and time consuming research, Presumption that spending more money on advertising equates with success but there are other factors to take into account including pricing, distribution and the other elements of the promotional mix. 4. Percentage of sales (quantity of money per unit of last year sales or % of sales forecast) is the easiest to calculate. Either historical or predicted figures are used and an agreed percentage is associated against these sales figures. Advantage - clear to all organization method means that control is made easy. Disadvantage - problem arise when sales are falling and the percentage figure is forecast on these reduced figures.
5. Historical approach entails establishing a level of expenditure which is acceptable to managers and sticking to it. Advantage - Conformable and easy method for managers and may work well in a stable market and economy. Disadvantage - The dangers are that more than is necessary will be spend or that the organization will have no idea how to respond to changing conditions.
6. Experiment and testing involves setting up different expenditures in different test markets which are equally matched in other respects. Advantages - The resulting levels of awareness and sales achieving can then be measured and compared, This method is the only viable scientific approach in a very uncertain situation. Disadvantage - This method is difficult and time-consuming to set up. 7. Modeling and simulation use computers and mathematical techniques to build models that allow marketing managers to forecast the performance of different media plans and advertising expenditure. Advantage - This is highly scientific and with accurate input data about costs, consumer response and so on it may give very reliable results. Disadvantage - Extremely difficult to obtain accurate input data and set up the relationship between variables in such a way that the predictions will be borne out (unpredictable factors).
8. 'As much as you can afford'.

Protectionism Discouraging imports by raising tariff barriers, imposing quotas etc.

Psychogalvanometer Used to assess a subject's response to, say, an advertisement by measuring perspiration rate.

Psychographics The technique of measuring life styles and developing life-style classifications; it involves measuring the major AIO dimensions (activities, interests, opinions). (Philip Kotler)

Psychological contract is a set of expectations an individual has about an organization he or she works for; can be coercive, calculative, co-operative.

Psychological repositioning Altering beliefs about a brand, for example if a product is believed to be of poor quality.

Public is a group of people united by a common interest that is specific to them or their situation.

There are four broad types of public: 1) all-issue publics, 2) apathetic publics, 3) hot-issue publics and 4) single-issue publics.

Publics is the range of different bodies which an organization interacts with: 1) Employees, 2) Investors, 3) Customers, 4) Regulators, 5) Government, 6) The local community, 7) Pressure groups, 8) Competition, 9) Shareholders, 10) Suppliers, 11) Trade intermediaries and 12) Media.

Public good is a good whose benefits cannot be restricted to particular customers. Consumption of a public good is non-rivalries, meaning that consumption by one person does not deprive others of the good.

Public opinion is a consensus, which emerges over time, from all the expressed views that cluster around an issue in debate, so that this consensus exercises power.

Public relations
Definition #1. Public relations is the art and science of analyzing trends, predicting their consequences, counseling organization leaders and implementing planned programs of action which will serve both the organizations and the public interest.
Definition #2 . Public relations includes all forms of planned communications, outwards and inwards, between an organization and its publics for the purpose of establishing and maintain mutual understanding.
Definition #3. Public relations is the means by which an organization tries to develop a mutual understanding between itself and its public (Institute of Public Relations).

Public relations mix: 1) Press kits, 2) Speeches, 3) Seminars, 4) Annual reports, 5) Charitable donations, 6) Sponsorships, 7) Publications, 8) Community relations and 9) Lobbying.

PR objectives: 1) Prestige and reputation (change the corporate image), 2) Promotion of products, 3) Dealing with issues and opportunities, 4) Goodwill of customers, 5) Goodwill of employees, 6) Overcoming misconceptions, 7) Goodwill of suppliers and distributors, 8) Goodwill of government, 9) Dealing with unfavorable publicity, 10) Attracting and keeping good employees, 11) Making the company known and understood in new export markets, 12) Preparing the stock market for a new share issue, 13) Strengthening the company against risk of takeover, 14) Supporting a sponsorship scheme.

PR transfer process (Jefkins):
From Negative / To Positive
Hostility / Sympathy
Prejudice / Acceptance
Apathy / Interest
Ignorance / Knowledge.

PR decisions: 1) Appreciate the situation, 2) Defining objectives, 3) Define publics, 4) 5) Select media, 6) Creating message, 7) Select techniques, 8) Develop a budget, 9) Performance and 10) Evaluation.

Characteristics of publicity: 1) The message has high credibility, 2) No direct media cost, 3) Lose control of publication, 4) Lose control of content, 5) Lose control of timing.

Public relations models: 1) Press agency/publicity, 2) Public information, 3) Two-way asymmetric, 4) Two-way symmetric.

Public relation planning process: 1) State of the problem or aim, 2) Do the research, 3) Identify the publics, 4) Choose appropriated media, 5) Monitor the effects, 6) Look to the future, 7) Maintain financial checks.

Qualities of a good PR practitioner: 1) An ability to get on with all kinds of people, 2) An ability to communicate, 3) An ability to organize, 4) Personal integrity in both professional and private life, 5) Imagination in the creative sense, 6) An ability to find out and have access to information.

The main methods by which the information is gathered: 1) Reporters, 2) Special correspondents, 3) Stringers, 4) Foreign correspondents, 5) Feature writers, 6) Contributors, 7) Wire service, 8) News agencies, 9) Picture agencies and libraries, 10) PR sources.

The differences between PR and advertising:
PR / Advertising
Informative / Informative and persuasive
Messages are subdued / Advertisements are sometimes designed to have immediate impact on sales
No repetition / Repetition
Greater credibility / Lesser credibility
Obligatory newsworthy / No such drawback
Low costs / High costs

The PR objectives for different publics:
Staff - To maintain and improve levels of motivation throughout the workforce through effective two-way communication (awareness of business plans and achieved targets; appraisals, surveys, informal meeting discussions of career and job problems).
Users - To continue to develop a friendly and empathetic image (effective communication of who we are, what we do, where we do it, how we operate).
Government - To maintain a high public profile through communication of research findings and success stories (maintenance of a high-profile organization).
General public - To raise awareness of the company through the communication of elements such as achievements, user's needs and our extensive range of experience and services.

PR communication tools: 1) Presentations, 2) Attendance at events, 3) Sponsorship.

Also see Public and Publics.

Public sector includes the activities of central government departments, local authorities, public corporations and nationalized industries.

Public sector organization is an organization controlled, directly or indirectly and/or funded by central and/or local government.

Public service advertising Advertising with a central focus on the public welfare. It is generally sponsored by a nonprofit institution, civic group, religious organization, trade association, or political group. (Responsive Database Services, Inc)

Definition #1. Publics a group of people who detect the same problem or issue, interact either face-to-face or through mediated channels, and behave as through they were one body.

Definition #2. Publics is the range of different bodies which an organization interacts with: 1) employees, 2) investors, 3) customers, 4) regulators, 5) government, 6) the community, 7) pressure groups, 8) competition, 9) suppliers, 10) trade intermediaries, 11) the local community.

Definition #3. The publics is related concept to stakeholders. People/organizations in the environment the firm must deal with. (Staff, Users, Government bodies, General public, Finance, Suppliers, Trade intermediaries, The local community, Media, Pressure groups)

The categories of publics (Grunig): 1) No public - The company has no consequences on the group, 2) Latent public  - The group members affected by the issues the company but do not detect it, 3) Aware public - The group members recognize the issues, 4) Active public - The group members organize themselves to discuss, do something about the problem.

Also see Public.

Publicity See Public relations.

Pull strategy is a sales strategy that relies on massive advertising to consumers to draw them into retail outlets to ask for specific brands.
See Pull incentives.

See also Push strategy.

Purchasing power parity is the theory that, in the long run at least, the equilibrium exchange rate between two currencies is that which equates the domestic purchasing power of each. For example, US$2 = =1 will represent equilibrium if $2 will buy the same amount of goods in the US as =1 will buy in the UK.

Pupilometric camera Used to assess the visual stimulation derived from an image.

Push strategy is a sales strategy that relies on salespeople to persuade retailers to stock and/or promote the product.
See Push incentives.

See also Pull strategy.

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