Marketing C-Text

Cable TV advertising advertising through basic cable networks, such as ESPN, MTV or CNN, and local cable systems, as well as non-commercial movie channels offered on cable. (Responsive Database Services, Inc.)

CAD Computer aided design, the use of information technology in product design.

CAM Computer aided manufacturing, the physical control of the production process or part of it by computers, as applied in robots, computer numerical control tools.

Campaign see Advertising campaign.

Cannibalization A situation in which a new product steals sales or market share from other products in the existing product line. (Courtland L. Bovee, John V. Thill)

Capacity is the ability or power of a person to enter into legal relationships or carry out legal acts.

Capital is the money put into a business by the owners ant it is therefore owed by business to the owners.

Capital items Industrial goods that en-ter the finished product partly, including installations and accessory equipment. (Philip Kotler)

Capital equipment Industrial machinery, office and store equipment, or transportation vehicles that are purchased infrequently and are used to produce goods, provide a service, or support the day-to-day operation of an organization. (Courtland L. Bovee, John V. Thill)

Capital market is the market, or more accurately the group of interrelated markets, for investing and raising capital in financial (monetary) form largely on a long-term basis.

Care, duty of is the care owed by one person to another, which, if broken, may give rise to an action for negligence.

Career management is the planning of a person's career within an organization, with regard to technical specialist, experience, and the organization's personnel needs.

Cartel is the association of suppliers for the purpose of cooperating on the fixing of variables such as price and output levels.

Cash budget is a statement in which estimated future cash receipts and payments are tabulated in such a way as to show the forecast cash balance of a business at defined intervals.

Cash cows see Boston classification

Cash discount A price reduction to buyers who pay their bills promptly. (Philip Kotler)

Cash flow statement is a statement produced for management (or for the annual report showing, by broad category, cash receipts and payments in a period or forecast for future periods.

Cash refund offers (rebates) Offers to refund part of the purchase price of a product after the purchase to consumers who send a "proof of purchase" to the manufacturer. (Philip Kotler)

Catalogs Publications that display a variety of merchandise available from a manufacturer or retailer. (Responsive Database Services, Inc.)

Catalog marketing Direct marketing through catalogs mailed to a select list of customers or made available in stores.

Catalog showroom A retail operation that sells a wide selection of high-markup, fast-moving, brand-name goods at discount prices. (Philip Kotler)

Caveat emptor let the buyer beware - no legal obligation to notify defects.

Caveat vindictor let the seller beware.

Causal research Research that helps marketers identify a specific factor that causes an effect in the marketplace. (Courtland L. Bovee, John V. Thill)

Cause-related marketing Promotional programs that tie charitable contributions to sales of a specific good or ser-vice; the term was copyrighted by American Express. (Courtland L. Bovee, John V. Thill)

Central planning is an economic system in which the government makes all major economic decisions.

Centralized organization An organization in which authority and responsibility are concentrated in the hands of relatively few people, usually the higher levels of management. (Courtland L. Bovee, John V. Thill)

Census A survey of every person or item in the population. (Courtland L. Bovee, John V. Thill)

Ceteris paribus is a Latin term often used in economics, meaning 'other things being equal' or 'other things remaining unchanged'.

CD-ROM is a compact disc with read-only memory forming a cost effective and secure information storage device with multimedia capabilities.

Cinema Advantages of using advertising thorough cinema: 1) High attention span, 2) Impact, 3) Regional flexibility, 4) Duration, 6) Targeting. Disadvantages of using cinema: 1) Product expense, 2) Referral, 3) TV, cable and satellite, 4) Viewing, 5) Slow penetration

Circulation is the number of copies of a publication that are sold. See also Readership.

Chain stores Two or more outlets that are commonly owned and controlled, have central buying and merchandising, and sell similar lines of merchandise. (Philip Kotler)

Champion is one who believes in the value of an idea or approach and supports or advances it in the face of numerous possible obstacles and opposition within the organization.

Change is a process involving movement from one state to another and often requires resistance to be overcome.

Types of change: 1. Environmental, 2. Productional: 2.1 Product and 2.2 Service, 3. Organizational: 3.1 Size, 3.2 Structural, 4. Technological.

Cause of reorganization needs: 1) Changes in the environment of the organization, 2) Diversification into new product-market areas, 3) Grown, 4) New technology, 5) Changes in the capabilities of personnel employed.

Organization development program: 1. Awareness of deficiencies and faults in the current method of operations; 2. Disclosure of the objectives of the program; 3. Data gathering: 3.1 Document's data (job descriptions, organization charts, procedure manuals, etc.), 3.2 Questionnaires, 3.3 Personal and group Incentives; 4. Diagnosis: 4.1 Encouraging informational feedback for employees, 4.2 Analyzing collected data, 4.3 Formulating possible causes of problems.; 5. Approval of chosen strategy; 6. Suggestion and approval of change objectives; 7. Formulating strategy to enable declared objectives to be achieved; 8. Monitoring of implementation.

Main reasons why people resistance to change: 1) Parochial self-interest, 2) Misunderstanding, 3) Different assessments of the situation, 4) Low tolerance for change.

Systematic approach to change: 1. Determine need or desire for change in a particular area; 2. Prepare a tentative plan (e.g. brainstorming); 3. Analyze probable reactions to the change; 4. Make a final decision from the choice of alternative options; 5. Establish timetable for change; 6. Communicate the plan for change; 7. Implement the change; 8. Review the change; 9. Continuous evaluation and modifications.

Facilitating change: 1) Education and communication (aware implication of change, reasons for change), 2) Participation and involvement (lead to increased commitment to change implementation ), 3) Assistance and support (sufficient resource of time and equipment, moral support and encouragement), 4) Negotiation and agreement (concessions and compromises), 5) Manipulating and co-option (support of influential individuals), 6) Coercion (last resort).

Marketing approach to change management: 1. Tell the people: 1.1 Clearly, 1.2 Realistically, 1.3 Openly; 2. Sell: 2.1 The pressure which make change necessary and desirable, 2.2 The vision of successful, realistically attainable change; 3. Evolve the people's attitudes, ideas, capacity to learn new ways; 4. Involve the people where possible in planning implementation.

Evaluating of effectiveness of change management: 1. The impact of change on organizational goals, 2. The success of the change in meeting its specified objective, 3. The behavior of people in the organization, 4. The reaction of the people in the organization.

Change agent is an individual with fresh perspective who acts as a catalyst on helping the organization find new solution to old problem.

Channel conflict Disagreement among marketing channel members on goals and roles-on who should do what and for what rewards. (Philip Kotler)

Channel level A layer of middlemen that perform some work in bringing the product and its ownership closer to the final buyer. (Philip Kotler)

Character symbol Historical figures, animated characters, animals, objects that are used to advertise a brand and that come to be associated with the brand, e.g. Joe Camel for Camel cigarettes, Charlie Chaplin (played by an actor) in IBM ads. (Responsive Database Services, Inc.)

Charity For serious diseases, homelessness, child abuse, third world poverty.

Marketing charity: 1) Goals - contribution value or levels of support over a given period; 2) Structure: individual (no groups), opinion leader no formal management training or retired, 'fixed mindset', highly resistant to change, fixed 'norms' of operating, informally structure (no levels of 'hierarchy' and 'accountability'); 3) Very difficult to measure results; 4) Possible objectives: (a) surplus maximization, (b) revenue maximization, (c) usage maximization, (d) usage targeting, (e) full cost recovery, (f) partial cost recovery, (g) budget maximization, (h) producer satisfaction maximization; 5) Marketing principles: (a) strategic visioning, (b) marketing audit, (c) SWOT and PEST, (d) marketing objectives, strategy and tactics, (e) control, feedback and review mechanisms.

Charismatic leadership Decisions are made by a leader, who is obeyed without question, on the basis of the power of the leader's personality or some other attribute.

Checklist is a succession of important or relevant points or tasks which when duly completed are noted with a tick or a mark.

Choice criteria (decision criteria) are the various features (and benefits) a customer uses when evaluation products and services. They provide the grounds for deciding to purchase one brand or another.

Choice criteria (David Jobber):
1. Technical: 1.1 Reliability, 1.2 Durability, 1.3 Performance, 1.4 Style/looks, 1.5 Comfort, 1.6 Delivery, 1.7 Convenience, 1.8 Taste;
2. Economic: 2.1 Price, 2.2 Value for money, 2.3 Running costs, 2.4 Residual value, 2.5 Life cycle costs;
3. Social: 3.1 Status, 3.2 Belonging, 3.3 Convection, 3.4 Fashion;
4. Personal: 4.1 Self-image, 4.2 Risk reduction, 4.3 Morals, 4.4 Emotions.

Other choice criteria (especially influencing the organizational buying decisions):
1. Quality, 2. Repair and after sales service, 3. Production facilities, 4. Help and advice, 5. Control systems, 6. Reputation, 7. Financial position, 8. Attitude to the buyer, 9. Compliance with bidding procedures, 10. Training support, 11. Communications on the progress of the order, 12. Management and organization, 13. Packaging, 14. Moral/legal issues, 15. Location, 16. Labor relations.

Cobranding A partnership between two major brands that results in a joint new product. For example: Kellogg's "Healthy Choice" cereal, Channel 13 and Visa card. (Responsive Database Services, Inc.)

Code of practice Voluntary guidelines to encourage desirable modes of behavior.

Cognitive dissonance Buyer discom-fort caused by post-purchase conflict. (Philip Kotler)

Committed cost see Overheads/costs/expenses

Common law is the body of legal rules developed by the common law courts and now embodied in legal decisions.

Commodity rates Discounted transportation rates that are reserved for a shipper's best customers; designed to promote customer loyalty. (Courtland L. Bovee, John V. Thill)

Common market is a custom union with a common system of commercial law which permits the free movements of goods, services, capital and labor.

Communication
Definition #1. Communication is the transmission or exchange of information.
Definition #2. Communication is a sharing of meaning.

Communication may be directed at: 1) initiating actions, 2) making known needs and requirements, 3) exchanging information, ideas, attitudes and beliefs, 4) establishing understanding, 5) establishing and maintaining relations.

Reasons of management communications: 1) communicate decisions to those effected by or involved with them, 2) motivate people to implement plans, 3) report on progress.

Communications downwards (from superior to subordinate): 1) delegation of work, 2) induction, 3) job rationale, 4) appraisal, and 5) indoctrination.

Communication upwards (from subordinate to superior): 1) information him/herself, performance problems, 2) information about others and their problems, 3) reports on what has been done, 4) comments about organizational practices and policies, 5) suggestion about what needs to be done and how it could be done.

Communication media available: 1. Face-to-face communication: 1.1 Formal meetings, 1.2 Interviews, 1.3 Informal contract; 2. Oral communication: 2.1 The telephone, 2.2 Public address systems, 2.3 Video conferencing systems; 3. Written communication: 3.1 Letters: external mail system, 3.2 Memoranda: internal mail system, 3.3 E-mail, 3.4 Reports, 3.5 Forms, 3.6 Notice boards, 3.7 Journals, bulletins, newsletters, 3.8 Organization manual; 4. Visual communication: 4.1 Charts, 4.2 Films and slides, 4.3 Video and videoconferencing; 5. Electronic communication: 5.1 Chat (e.g. ICQ) thorough Internet, 5.2 Voicemail, 5.3 Electronic data interchange.

Possible communication problems at work: 1) 'Technical' problems in the problems itself, 2) Failure to communicate, 3) Communicating too much - overload, 4) Sending the 'wrong' message, 5) Encoding or decoding the message wrongly, 6) Choosing an unsuitable medium or channel of communication, 7) Failure of feedback, 8) Problems in the context of communication at work, 9) Differences or conflict between objectives and/or individuals, 10) Different "vocabulary" of different disciplines, 11) Subordinates fear of transmitting 'bad news' to superior, 12) Incorrect or incomplete information available within time constraints, 13) Lack of opportunity and encouragement for subordinates to communicate "upwards" , 14) Giving more importance to communication from "above" than "below".

Communication model (Wilbur Schramm):
1) Sender is the party sending the message to the other party, also referred to as the communicator or the source (Who?);
2) Encoding process encompasses the means by which a meaning is placed into symbolic form (words, signs, sounds etc.) (Say what?) Key factors - language and information about target market,
3) Media is the communicator channel or channels through which the message moves from sender to receiver (How?);
4) Decoding is a process carried out by the receiver who converts the symbolic forms transmitted by the sender into a form that makes sense to him (How?);
5) Receiver is the party who receives the message, also known as the audience or the destination (To whom?);
6) Response is the reaction of the receiver to the message (With what effect?);
7) Feedback is the part of the receiver's response that the receiver communicates back to the sender;
8) Noise All those factors which prevent the decoding of a message by the receiver in the way intended by the sender.

Reasons why the target audience not receive the message:
1) Selective attention is a phenomenon in communication whereby receivers only notice some of the messages that they come into contact with.
2) Selective distortion is a phenomenon in communication whereby receivers distort or change the information received if that information does not fit in with their existing attitudes, beliefs and opinions.
3) Selective recall is a phenomenon in communication whereby a receiver retains in his permanent memory only a small fraction of the messages that reach him.
4) Message rehearsal is a phenomenon in communication whereby the receiver elaborates on the meaning of the message in a way that brings related thoughts from the long-term memory into his short-term memory.

Communications strategy and planning See Marketing communications strategy and planning.

Community advertising Advertising by communities, states, or destinations; for example, the "I Love New York" campaign designed to attract tourists and businesses. (Responsive Database Services, Inc.)

Company culture A system of values and beliefs shared by people in an organi-zation-the company's collective iden-tity and meaning. (Philip Kotler)

See also Corporate culture.

Company forecast is the expected level of sales for the company based on a chosen marketing plan and an assumed marketing environment.

Comparative advantage is the principle that economic agents are best employed in activities which they carry out relatively better than in other activities. A country has a comparative advantage in producing good X over good Y if it can produce good X at a low opportunity cost relative to good Y. Applied to international trade, a country will gain from specializing in producing goods in which it has a comparative advantage.

Comparison advertising Advertising that compares one brand directly or indirectly to one or more other brands. (Philip Kotler)

Competition The rivalry among sellers trying to increase sales, profits, or market share while addressing the same set of customers. (Courtland L. Bovee, John V. Thill)

Competitive activity involves the actions taken by businesses to improve their profitability at the expense of rivals.

Competitive advantage is the factor, which enables a firm to compete successfully with competitors on a sustained basis.

Possible sources of competitive advantage: 1. Superior skills; 2. Superior resources: 2.1 The number of sales people, 2.2 Expenditure on advertising and sales promotion, 2.3 Distribution coverage, 2.4 Expenditure on RD, 2.5 Scale and type of production facilities, 2.6 Financial resources, 2.7 Brand equity; 3. Core competencies; 4. Value chain: 4.1 In-bound and out-bound physical distribution, 4.2 Operations, 4.3 Marketing, 4.4 Service, 4.5 Procurement, 4.6 Technology, 4.7 Humane resource, 4.8 Firm infrastructure.

Competitive behavior is the conduct of businesses in market situations involving actions and reactions to achieve advantage over rivals.

Competitive forces / five Porter's forces see Structural analysis.

Competitive position (competitiveness) is (i) Market share, (ii) Costs, (iii) Price, (iv) Quality, (v) Accumulated experience of an entity or product, (vi) R & D performance, (vii) Production effectiveness/capacity, (viii) Distribution network and (ix) Reputation relative to competition.

Competitive strategies (based on market share): 1) Differentiation offers leadership or focus products which can be regarded as unique in areas which are highly valued by the consumer, creating consumer loyalty which protects the firm from competition (Premium price, Extra value), 2) Cost leadership attempts to control the market through being the low cost producer (lowest cost position), 3) Differentiation focus aims to serve particularly attractive or suitable segments or niches (to differentiate within one or a small number of target market segments), 4) Cost focus aims to serve particularly attractive or suitable segments or niches (cost advantage with one or a small number of target market segments).

Strategies available to the competitive firm:
1) Cost minimization;
2) Cartels (International cartels: OPEC (oil), IATA (airlines) and De Neers (diamonds));
3) Product differentiation: (i) Product. Permutation of the core, tangible (e.g. design, quality, packaging) and augmented product (e.g. brand name, delivery, after-sales service); (ii) Price. Credit and payment terms may vary, as could allowances and trade-in values; (iii) Promotion. To support the differentiation (e.g. sales force, advertising); (iv) Place. Offers opportunities through location adopted, coverage and, most importantly, service provided;
4) Merger and economies of scale;
5) Barriers to entry: (i) Natural, (ii) Legal, (iii) Absolute cost advantages, (iv) Economies of scale, (v) Deliberate action to restrict or discourage entry, (vi) Expected entry impact deters competitors.
6) Innovation.

See also Generic strategies, Ansoff matrix and Product life cycle.

Competitiveness See Competitive position

Competitor analysis is an analysis of competitors' strengths and weaknesses, strategies, assumptions, market positioning, etc. from all available sources of information in order to identify suitable strategies.

Strengths and weaknesses of competitors: 1. Marketing: 1.1 Understanding customers, 1.2 Customer loyalty, 1.3 Promotion effectiveness, 1.4 Distribution coverage; 2. Finance: 2.1 Availability/cost of capital, 2.2 Financial stability, 2.3 Profitability; 3. R & D: 3.1 Innovative response to customer needs, 3.2 Time to market for new products, 3.3 Patent protection; 4. Manufacturing: 4.1 Technical manufacturing skills, 4.2 Facilities, 4.3 Dedication of workforce, 4.4 Quality standards.

The process of competitor analysis : 1) Identify competitors (Product form, Product substitutes, Generics, New entrants); 2) Audit competitor capabilities (Financial, Technical, Managerial, Marketing assets, Strengths and weaknesses), 3) Infer competitor objectives and strategic thrust (Build, Hold, Harvest, Grown directions), 4) Deduce competitor strategies (Target segments, Differential advantages, Competitive scope, Cost leadership), 5) Estimate competitor response pattern (Retaliatory, Complacent, Hemmed-in, Selective, Unpredictable).

Required competitor information: 1) Sales, 2) Market share, 3) Costs, 4) Profit levels, 5) Return on capital invested, 6) Cash flow, 7) Profitability by segment, 8) Production processes and technologies employed, 9) Capacity levels and utilization, 10) Product quality, 11) Range of products processes and new developments, 12) Size and structure of the customer base, 13) Suppliers, 14) Culture of the organization, 15) Level of brand loyalty, 16) Dealer networks and Distribution channels, 17) Core capabilities and competence, 18) Marketing and selling capabilities, 19) Operations and logistics, 20) Financial structure and capability, 21) Management capability and attitudes to risk, 22) Ownership and owner expectations, 23) Human resource capability, 24) Resource patterns.

Sources of information about competitors:
1. Identification competitors: 1.1 Advertising, placed by competitors, 1.2 Customers of the competitors, 1.3 Suppliers, 1.4 Trade associations and databases - information on numbers of competitors and size of market, 1.5 Yellow pages and other directories, 1.6 Chamber of Commerce, 1.7 Observation in the street (retail competitors), 1.8 Trade fairs, 1.9 Exhibitions;
2. Gathering intelligence: 2.1 Send for catalogues and promotional material, 2.2 Visit competitors, 2.3 Send for published reports about the company or its products and services, 2.4 Obtain press cuttings, 2.5 Review company reports, 2.6 Study market research reports, 2.7 Look at ICC tables, 2.8 Examine products, 2.9 Ask customers and suppliers, 2.10 Be vigilant, 2.11 Use sales visits if competitor is also a customer or if a customer come into contract with your competitor, 2.12 Industry experts.

Also see Market signals and Competitor intelligence.

Competitor intelligence The systematic collection and analysis of data about a firm's competitors, with the goals of understanding the competitors' positions in the market and of formulating strategies in response. (Courtland L. Bovee, John V. Thill)

Competitor intelligence system Procedures to obtain data for competitor analysis.

Sources of competitor intelligence include the following:
1. The sales force. Salespeople can be a very good source of competitive information Whether field sales, or sales office based, they will have the opportunity to pick up intelligence from customers. Although a certain amount of information might be offered, salespeople might need encouraging to ask the right sort of questions and probe when chance comments of comparisons with the competition are made. They also might need prompting to pass these onto the managers in the company.
2. Competitors' reps. Representatives often meet up with each other on customers' premises, in the car park, at exhibitions or at trade evenings. 3. Own suppliers. It may be that your sources of certain raw materials or equipment also supply the competition. Knowing how much of a certain raw material is used annually could help assess market share.
4. Trade magazines and quality newspapers. Often features will be written about different companies within the industry. New developments may be detailed or how the sales force is organized might be given.
5. Published market research reports. Organizations such as Mintel, Keynote and Euromonitor regularly publish market reports. These can be used to assess ones own market share and often industry forecast are given.
6. Trade associations. These will provide details of members.
7. Directories. Kelly's, Kompass, Key British enterprises and the Yellow Pages are just a few of the potential directories that can be used. Depending on which source is chosen, these can be used to assess the size, turnover, number of employees etc. of a competitor.
8. Annual reports and accounts. Where these are available, they can be a good source of background financial information of the competition, plus detail on which markets they are in, which other companies they own etc.
9. Competitive literature or catalogues and price lists. These allow a sales/marketing manager to assess the competition's strengths and weaknesses in terms of the product range.
10. The competition's products. A visual examination or trial could provide a certain amount of information. Proper examination by the Research & Development department could also prove beneficial.
11. Ex-employees. Although it would be unethical to advertise a non-existent job to attract applicants from the competition just to quiz them on their companies, there is no reason why ex-employees should not be engaged and they can prove a valuable insight into competition.
Also see Competitors analysis.

Competitor responses : 1) Neutral moves: (a) Hospitable moves, (b) Blind spot moves; 2) Offense moves: (a) Superior strength, (b) Asymmetric cost moves, 3) Defensive moves: (a) Readiness moves, (b) Leverage moves.

Complaint
Steps when faced with complaint: 1) Listen, 2) Sympathize, 3) Do not justify, 4) Ask questions, 5) Agree a course of action, 6) Follow up to ensure the actions happens.

Complements Two goods are complements of each other if changes in the demand for one will have a complementary effect on the demand for the other, e.g. compact disc players and compact discs; cars and petrol.

Computer software is a term for the programs and application packages that make computer hardware useful by storing, manipulating and retrieving data.

Concentrated marketing A marketing approach that focuses on a small part of the market with a single or limited line of similar products; it can be used by firms with limited resources or in markets with specialized customer segments. (Courtland L. Bovee, John V. Thill)

Concentration ratios is the proportion of firms holding most of the market (e.g. the top two firms hold 20%).

Concept testing Testing new product concept with a group of target consumers to learn whether the concepts have wrong consumer appeal. (Philip Kotler)

Conglomerate diversification Making new products for new markets.

Condition Term vital to a contract. Breach of a condition destroys the basis of the contract.

Conditioning Learning to associate a stimulus with a re-sponse. (Courtland L. Bovee, John V. Thill)

Consensus Organizational objectives result from a consensus of the views of different stakeholders.

Consequentialism Approach to ethics suggesting that the goodness or badness of the action can be judged only by the consequences of the actions (as opposed to the state of mind or intention of the person carrying out the action).

Consideration That which is given, promised or done by a party to a contract.

Consistency theories Theories of decision making which assume that an individual Seeks consistency between his values, ideas and behavior.

Constraints Rules restricting managers' freedom of action.

Constructive dismissal Serious breaches of contract by an employer which forces an employee to leave.

Consumer is the end user of a product service. May or may not be the customer.

See below Consumer buying behavior, Consumer goods, Consumer markets, Consumer panels, Consumer promotion and Consumer rights.

Consumer buying behavior is the using products or services.

Factors determining consumer buying behavior: 1) Cultural, 2) Social (opinion leader, the family, reference groups, education, socioeconomic group), 3) Psychological (needs, motivation, perception, learning, beliefs and attitudes), 4) Socio-psychological (attitudes), 5) Personal factors, 6) Economic, 7) For organizational buyers: organizational (company needs, inter-departmental rivalries, performance, buying committee/purchasing officer.

The general stages in the buyer decision process (Kotler) :
1. Problem recognition The first stage of the buyer decision process in which the consumer recognizes a problem or need. The task for marketer is to identify the circumstances and/or stimuli that trigger a particular need and use this knowledge to develop marketing strategies that trigger consumer interest);
2. Information search The stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search. The task for marketer is to decide which are major information sources that the customer will use and to analyze their relative importance. Four group of sources: a) Personal sources, b) Commercial sources, c) Public sources, d) Experiential;
3. Alternative evaluation is the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set. Evaluation of alternatives. Options for actions: a) modifying the brand (real repositioning), b) altering beliefs about the brand(psychological responding), c) altering beliefs about the competitor's brands, d) altering importance weights of attributes, e) calling attention to neglected attributes, f) shifting the buyer's ideas;
4. Purchase decision Four types of decision making: a) complex decision-making, b) brand loyalty, c) low involvement decision making, d) inertia;
5. Postpurchase behavior The stage of the buyer decision process in which con-sumers take further action after purchase based their satisfaction or dissatisfaction.

Buying decision process of organizations (Kotler):
1) Problem recognition The stage of the industrial buying process in which some-one in the company recognizes a problem or need that can be met by acquiring a good or a service.
2) General need description The stage in the industrial buying process in which the company describes the general char-acteristics and quantity of a needed item.
3) Product specification (Development of product specifications designed to solve the problem) The stage of the industrial buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item.
4) Products and suppliers search.
5) Proposal solicitation The stage of the industrial buying process in which the buyer invites qualified suppliers to submit proposals.
6) Selection and ordering.
7) Performance review (Evaluating the product and supplier) The stage of the industrial buying process in which the buyer rates its satisfaction with suppliers, deciding whether to continue, modify, or drop them.

Influences on consumer buying decision process: 1) Perception, 2) Motives, 3) Ability and knowledge, 4) Attitude and personality.

Main types of organizational purchase: 1) New task purchase. The organization is facing a need or a problem for the first time and the full organizational buying process will probably occur. 2) Modified re-buy purchase. This is something about the buying situation has changed, but a lot still remains the same. 3) Straight re-buy purchase occurs when the buyer routinely purchases the same product under the same terms of sale.

The types of buyers (Dickenson):
1. Loyal buyers, who remain loyal to source for considerable periods;
2. Opportunistic buyers, who choose between sellers on the basis of who will best further their long-term interests;
3. Best deal buyers, who concentrate on the best deal available at the time;
4. Creative buyers, who tell the seller precisely what they want in terms of the product, service and price;
5. Advertising buyers, who demand advertising support as part of the deal;
6. Chiselers, who constantly demand extra discounts;
7. Nuts and bolts buyers, who select products on the basis of the quality of their construction.

The differences between individual and organizational buying behavior: 1) Different structure of DMU, 2) Individual spends his own money, in the industrial situation the product is not paid by the real money owners, 3) Different level of loyalty from the same suppliers repeatedly, 4) Individual is more involved to the product use.

See also Legislation.

Consumerists are those groups and organizations who exert legal, moral and economic pressure on business to account the interests of consumers over profit.

Consumers' Association UK interest group representing consumers; conducts product tests and comparisons, lobbies government etc.

Consumption is the use of goods and services to satisfy current wants.

Contests Promotions, such as sweepstakes, that offer a prize and may or may not require a purchase for prize eligibility. (Responsive Database Services, Inc.)

Contingency plan Action to be implemented only upon the occurrence of future events other than those in the accepted plan.

Contingency school/approach Not a coherent body of thought but more an assumption that there is no one best way to manage, to lead, or to structure an organization and that it all depends on a variety of factors, which have more or less weight depending on the circumstances.

Continuous improvement is the aspect of TQM suggests it is possible to find new or better ways of doing things, and it is the task of all to investigate improvements.

Continuous research is a research activity planned to provide regular information from systematic ongoing data collection.

Imputes and Output/action of continuous research: 1) Sales quantity and value by customer - Promotion, 2) Sales quantity and value by product, Price changes, 3) Profitability by customer - Different packaging, 4) Profitability by product - Develop new channels.

Contract is an agreement, which the law will recognize and enforce.

Elements of contract: 1) Offer, 2) Acceptance, 3) Intend to create a legally binding contract, 4) Consideration, 5) Capacity, 6) Legality.

Contract manufacture See Market entry methods.

Contractual relationship is an agreement between two or more parties which the law will recognize and enforce.

Contractual marketing system A Vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone. (Philip Kotler)

Contribution is sales value less variable cost of sales.

Contributions center is a profit center where expenditure is reported on a marginal or direct cost basis.

Contribution/profit-volume (P/V) chart Chart showing the impact on profit of changes in turnover.

Control is the process of that a firm's activities conform to its plans and that its objectives are achieved. (Drury)
See also Budgetary control.

Controllable cost see Overheads/costs/expenses.

Convenience goods (Convenience products)
Definition #1. Consumer goods that the customer usually buys frequently, immediately, and with the minimum of comparison and buying effort. (Philip Kotler)
Definition #2. Relatively inexpensive products that buyers or users choose frequently with a minimum of thought and effort. (Courtland L. Bovee, John V. Thill)

Convenience products See Convenience goods.

Convenience store A small store, lo-cated near a residential area, open long hours, seven days a week, and carrying a limited line of high-turnover conve-nience goods. (Philip Kotler)

Conventional distribution channel A channel consisting of one or more inde-pendent producers, wholesalers, and re-tailers, each a separate business seeking to maximize its own profits even at the expense of profits for the system as a whole. (Philip Kotler)

Co-operative see Trading organization.

Cooperative campaign Collaboration of two or more advertisers and advertising in which the manufacturer of a product provides materials to and reimburses a retailer for part or all of the retailer's advertising expenditures. (Responsive Database Services, Inc.)

Co-ordination is the fundamental reason for the existence of organizations; achieved by mutual adjustment, direct supervision, and standardization of work processes or skills or outputs (Mintzberg).

Copyright The exclusive legal right to reproduce, publish, and sell the matter and form of a literary, musical, or artistic work. (Philip Kotler)

Copy testing Measuring the commu-nication effect of an advertisement be-fore or after it is printed or broadcast. (Philip Kotler)

Core customers A company's most important customers, distinguished from the rest by their long-term value to the company. (Courtland L. Bovee, John V. Thill)

Corporate advertising Advertising whose purpose is to promote the image of a corporation rather than the sale of a product or service. Also called "Image Advertising." (Responsive Database Services, Inc.)

Corporate appraisal is a critical assessment of the strengths and weaknesses, opportunities and threats (SWOT analysis) in relation to the internal and environmental factors affecting an entity in order to establish its condition prior to the preparation of the long-term plan .

Corporate culture Culture residing in an organization; influenced by the organization's founder, history, structure and systems leadership and management style.

Corporate marketing system A type of Vertical marketing system in which one company owns every player in the channel. (Courtland L. Bovee, John V. Thill)

Corporate objectives Objectives for the firm as a whole.

Corporate sponsorship corporate financial backing for a project or event, in return for public exposure and goodwill. Often referred to as brought to you by for cultural events. (Responsive Database Services, Inc.)

Corporate strategy Strategy for the business as a whole (Johnson and Scholes).

Corrective ads Advertising which is intended to correct an advertised claim that has been found by the Federal Trade Commission or another regulating body to be deceptive. (Responsive Database Services, Inc.)

Correlation is the degree to which change in one variable is related to change in another. The interdependence between variables.

Correlation analysis A forecasting method that predicts the sales of an item on the basis of the sale, use, or availability of one or more other items. (Courtland L. Bovee, John V. Thill)

Cost accounting is an internal reporting system for an organization's own management.

Cost allocation is the process by which whole (discrete and identifiable) cost items are charged directly to a cost unit or cost center. In the case of overhead costs, overhead cost items are charged direct to various overhead cost centers.

Cost apportionment is the process by which cost items, or cost center costs, are divided between several cost centers in a 'fair' proportion based on the estimated benefit received.

Cost behavior is the way in which costs of output are affected by fluctuations in the level of activity. The basic principle of cost behavior is that as the level of activity rises costs will usually rise: 1) a fixed cost tend to be unaffected by changes in activity level, 2) a variable cost tends to vary directly with the volume of output, 3) a semi-variable cost is part fixed and part variable.

Cost benefit analysis Measuring resources used in an activity and comparing them with the value of benefits.

Cost center
Definition #1. Cost center is an area of activity or operations that is identified as the responsibility of a manager who is accountable for costs at that center, usually against a budget. They usually represent the smallest type of responsibility center.
Definition #2. Cost center is a production or service location, function, activity or item of equipment whose costs may be attributed to cost units.

Cost driver is an activity which generates cost. (Particularly related to activity based costing.)

Cost focus see Competitive strategies.

Cost leadership attempts to control the market through being the low cost producer (lowest cost position).

Creating cost leadership: 1) Economies of scale, 2) Learning, 3) Capacity utilization, 4) Linkages, 5) Interrelationships, 6) Integration 7) Timing, 8) Policy decisions, 9) Location, 10) Institutional factors.

Also see Competitive strategies.

Cost of capital is the cost of financing an investment, expressed as a percentage rate.

Cost of ownership The total cost of acquiring and owning a product; it includes the search costs, the purchase price, and any other expenses related to installation, maintenance, service, and replacement. (Courtland L. Bovee, John V. Thill)

Cost of sales is the sum or variable cost of sales plus factory overhead attributable to the turnover.

Cost per thousand is a measure of media cost, in terms of the price paid to reach an audience of one thousand readers.

Cost plus pricing Method of arriving at a selling price by adding a desired profit margin to total cost.

Cost pool is a group of all costs that are associated with the same activity or cost driver.

Cost-push inflation Inflation resulting from an increase in the costs of production of goods and services, e.g. through escalating prices of imported raw materials or from wage increases.

Cost unit is a unit of product or service in relation to which costs are ascertained.

Countertrade A trading practice in which the seller agrees to buy products from the customer in exchange for the customer's agreement to buy the seller's products. (Courtland L. Bovee, John V. Thill)

Coupons
Definition #1. Legal certificates offered by manufacturers or retailers that entitle the bearer to a discount on an item at the time of purchase; includes rebates. (Responsive Database Services, Inc.)
Definition #2. Certificates that give buyers a saving when they purchase a product. (Philip Kotler)

Coverage is a measure of the percentage of the specified target who see an advertisement once during a campaign.

Creative strategies of Charles Frazer:
1. Generic strategy is one which is based upon straight facts and does not attempt to make any distinguishing claims between one product and next.
2. Pre-emptive strategy is used where there are only limited differences between the products within a given product class. Pre-emptive strike attempts to say something about product, which other competitors would be reluctant to adopt, in case they were labeled as blatant imitators.
3. Unique selling proposition (USP) relates to the ability of a company to establish and communicate a distinct product benefit which competitors cannot make or refuse to make.
4. Brand image is concerned more with psychological rather than physical differences between products. The aim is to associate the product with symbols and characters who relate to the potential target audience.
5. Positioning attempts to define in the consumer's mind the comparisons between one product and the next. The task is identify weaknesses in competing product and strengths in your own which can be reinforced so as to gain competitive edge.
6. Resonance strategy is one which 'strikes a cord' with the consumer. The intention is to portray a life style orientation which synonymous with the target group and one which us easily recognizable.
7. Emotional strategy is currently widely adopted by companies wishing to play on, as much as play to, the emotions of the consumer.

Credit control
Formulating credit control policy: 1. The administrative costs of debt collection; 2. The procedures for controlling credit to individual customers and also debt collection; 3. The amount of extra capital required to finance an extension of total credit; 4. The cost of the additional finance required to increase working capital; 5. Any savings or additional expenses in operating the credit policy; 6. The ways in which credit policy can be implemented: 6.1 Giving debtors a longer period in which to settle their account, the cost of credit would be the finance cost of the resulting increase in debtors, 6.2 A discount can be offered for early payment; the cost of the credit policy would then be cost of the discounts; 7. The effect of easing credit might be to encourage a higher promotion of bad debts or to increase sales volume.

Benefits of extra expenditure on debt collection procedures: 1) Reduce bad debt losses, 2) Reduce the average collection period.

Main points of initial investigation of potential credit customers and the counting control of outstanding accounts: 1) New customers should give two good references, including one from bank, before being accepted, 2) Credit ratings should be checked through a credit bureau (e.g. Dun&Bradstreet), 3) A new customer's credit limit should be fixed at a low level and only increased if payments records warrants it, 4) For large value customers, files should be produced and reviewed at regular intervals, 5) The credit limit for existing customers should be periodically reviewed, but should only be raised at the request if the customer and if his credit standing is good.

Method of positive debt collection: 1) Request for payment by telephone, 2) Fax or letter, 3) Personal visit, 4) Withdrawal of credit facilities, 5) Place debt in hands of a debt collection agency, 6) Legal proceedings.

Factors determining extension of total credit: 1) The additional sales volume, 2) The profitability of the extra sales, 3) The extra length of the average debt collection period, 4) The required rate of return on the investment in additional debtors.

Creditor is a person or an entity to whom money is owed.

Cross elasticity of demand is a measure of the responsiveness of demand for one good to changes in the price of another: the percentage change in the quantity demanded of one good divided by the percentage change in the price of the other good.

Cross-cultural consumer classification See Segmentation.

Crisis communications Action taken by a company to maintain its credibility and good reputation after a situation has occurred that may affect the company in a negative manner. (Responsive Database Services, Inc.)

Crisis management: 1) Identifying problem, 2) Corrective action, 3) Subordinate interview, 3) Explanations, 4) Prevention.

Critical path analysis (CPA) is project management technique which maps the sequential relationships between different tasks in a project in order to assist planning, and to find the shortest possible time for doing them; costs can be factored into the analysis.

Advantages of CPA approach: 1) identifying the shortest possible time for a project, 2) identifying activities to schedule simultaneously, 3) ability of adjusting allocation of resources by identifying which activities can be 'worked' or speeded up.

Critical path analysis provides information for making decision: 1. Focus, 2. Creation of plan, 3. Communication, 4. Understanding, 5. Monitoring and control, 6. Resource planning, 7. Scheduling.

Cross impact analysis Qualitative forecasting technique which involves the assessment of the impact of key trends.

Advantages of cross impact analysis :
1. Cheap method; 2. Can be updated regularly as situations develop.

Cultural environment Institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors. (Philip Kotler)

Culture
Definition #1. The set of basic values, per-ceptions, wants, and behaviors learned by a member of society from family and other important institutions. (Philip Kotler)
Definition #2. The sum total of beliefs, knowledge, attitudes of mind and customs to which people are exposed in their social conditioning. Comprises beliefs and values, customs (and laws), artifacts, and rituals.
Definition #3. The values, attitudes, beliefs, ideas, artifacts and other meaningful symbols represented in the pattern of life adopted by people that help them interpret, evaluate and communicate as members of society.

Cultural Framework:
1. Language: 1.1 Spoken language, 1.2 Written language, 1.3 Official language, 1.4 Linguistic pluralism, 1.5 Language hierarchy, 1.6 Inernational languages, 1.7 Mass media;
2. Aesthetics: 2.1 Beauty Good taste, 2.2 Design, 2.3 Color, 2.4 Music, 2.5 Architecture, 2.6 Brand names;
3. Law and politics: 3.1 Home country law, 3.2 Foreign law, 3.3 International law, 3.4 Regulation, 3.5 Political risk, Ideologies, 3.7 National interest;
4. Religion: 4.1 Sacred objects, 4.2 Philosophical systems, 4.3 Beliefs and norms, 4.4 Prayer, 4.5 Taboos, 4.6 Holidays, 4.7 Rituals;
5. Technology and material culture: 5.1 Transportation, 5.2 Energy systems, 5.3 Tools and objects, 5.4 Communications, 5.5 Urbanization, 5.6 Science, 5.7 Invention;
6. Values and attitudes - Toward: 6.1 time, 6.2 achievement, 6.3 work, 6.4 health, 6.5 change, 6.6 scientific method, 6.7 risk taking;
7. Education: 7.1 Formal education, 7.2 Vocational training, 7.3 Primary education, 7.4 Secondary education, 7.5 Higher education, 7.6 Human resources planning, 7.7 Literacy level;
8. Social organization: 8.1 Kinship, 8.2 Social institution, 8.3 Authority structures, 8.4 Interest groups, 8.5 Social mobility, 8.6 Social stratification, 8.7 Status systems.

Culture embraces the following aspects of social life : 1. Beliefs and values; 2. Customs: 2.1 Folkways, 2.2 Conventions, 2.3 Mores, 2.4 Laws; 3. Artifacts; 4. Rituals.

Hofstede model of national cultures
The dimensions of national cultures:
I Power-distance. This dimension measures how far superiors are expected to exercise power. In a high power-distance culture, the boss decides and people do not question.
II Uncertainty-avoidance. Some cultures prefer clarity and order, whereas others are prepared to accept novelty. This affects the willingness of people to change rules, rather than simply obey them: I - High, II - High, III - High, IV - High, V - High, VI - Low, VII - Low to medium, VIII - Low.
III Individualism/collectivism. In some countries individual achievement is what matters. A collectivist culture (e.g. people are supported - and controlled - by extended families) puts the interests of the group first.
IV 'Masculinity'/'Femininity'. In 'masculine' cultures, gender roles are clearly differentiated. In 'feminine' ones they are not. 'Masculine' cultures place greater emphasis on possessions, status, and display as opposed to quality of life, the environment etc.

Hofstede grouped countries into eight 'clusters':
1. More developed Latin (e.g. Belgium, France, Argentina, Brazil, Spain): I - High, II - High, III - Medium to high, IV - Medium.
2. Less developed Latin (e.g. Portugal, Mexico, Peru): I - High, II - High, III - Low, IV - High.
3. More developed Asian (e.g. Japan): I - Medium, II - High, III - Medium, IV - Very High.
4. Less developed Asian (e.g. India, Taiwan, Thailand): I - High, II - Low to medium, III - Medium IV - High.
5. Near Eastern (e.g. Greece, Iran, Turkey): I - High, II - High, III - Low, IV - Medium.
6. Germanic (e.g. Germany): I - Low, II - Medium to high, III - Medium, IV - Medium to high.
7. Anglo (e.g. UK, US, Australia): I - Low to medium, II - Low to medium, III - High, IV - High.
8. Nordic (e.g. Scandinavia, the Netherlands): I - Low, II - Low to medium, III - Medium to high, IV - Low.

Current account balance is that part of overall balance of payments which records both visible trade in goods and invisible trade in services. It does not include capital or foreign exchange transactions and is the key indicator of the trading health of an economy.

Current asset is a cash or other assets, e.g. stock debtors and short-term investments, held for conversion into cash in the normal course of trading.

Current assets: 1) Socks, 2) Debtors, 3) Cash.

Current liabilities are liabilities which fall due for payment within one year. They include that part of long-term loans due for repayment within one year.

Current ratio Current assets / Current liabilities

Customer is the purchaser of a product/service. May or may not be the consumer.

Customer care is a fundamental approach to the standards of service quality. It covers every aspect of a company's operations, from the design of a product or service to how it is packaged, delivered and serviced.

Customer care elements: 1) Put the customer first; 2) Get to know the customer; 3) Be sensitive to customer needs; 4) Be willing to listen; 5) Aim to please; 6) Be accessible.

Customer care program: 1. Identify key dimensions of service quality; 2. Set standard for service delivery; 3. Analyze employee training needs; 4. Develop training programs to include: 4.1 business and product knowledge, 4.2 customer awareness, 4.3 interpersonal skills; 5. Internal education and communication programs; 6. Measure and monitor success: 6.1 employee performance and satisfaction, 6.2 customer expectation and perceptions of actual service quality; 7. Performance related play and recognition system; 8. Cultural change.

Customer care improvements: 1) A director responsible for customer service and requiring that performance is regularly monitored, 2) Staff who are fully trained and expertise always available to handle customer queries, 3) Decisions to resolve customers problems being taken closest it where they originate by staff with the power to resolve them, 4) Complaints being treated as an opportunity, providing focus for locating where performance can be improved and competitive advantage gained, 5) A published customer service policy, and any code of practice adhered to is independently audited, 6) Customer involvement in direct feedback (e.g. panels, suggestion schemes).

Customer buying process .
Factors determining the customer buying process: 1. Culture: 1.1 culture, 1.2 sub-culture, 1.3 social class; 2. Social: 2.1 reference groups, 2.2 family, 2.3 roles and status; 3. Personal: 3.1 age and life-cycle stage, 3.2 occupation, 3.3 economic circumstances, 3.4 life-style and personality; 4. Psychological: 4.1 motivation, 4.2 learning, 4.3 perception, 4.4 beliefs and attitudes.

Customer orientation A management philosophy in which the customer is central to everything the company does. (Courtland L. Bovee, John V. Thill)

Customer satisfaction (Milind M. Lele and Jagdish N. Sheth): 1. Product-related variances; 2. Sales and promotion-related variables: 2.1 Messages, 2.2 Attitudes, 2.3 Intermediaries; 3. After-sales variances: 3.1 Support services, 3.2 Feedback and restitution; 4. Culture-related variances.

Customer service Actions companies can take to add value to basic goods and services. (Courtland L. Bovee, John V. Thill)

Customer value analysis Analysis conducted to determine what benefits tar-get customers value and how they rate the relative value of various competitors' offers. (Philip Kotler)

Customs
Definition #1. Customs. Long-established business practices and modes of customer behavior (e.g. half-day closing).
Definition #2. Customs. Customs are modes of behavior which represent culturally approved ways of responding to given situations: usual and acceptable ways of behaving. They comprise folkways, conventions, mores and laws.

Customs duty is a tax imposed on imports in order to raise revenue.

Cycle analysis A time series correction technique that adjusts forecasts for movements in the overall economy. (Courtland L. Bovee, John V. Thill)