Macroeconomics is the study of the economy as a whole.

Macroenvironment The larger societal forces that affect the whole microenvironment-demographic, economic, natural, technological, political, and cultural forces. (Philip Kotler)

See also Environment.

Magazines [color] media characteristics as choice criteria: 1) target audience, 2) cost effectiveness, 3) frequency, 4) editorial, 5) life of media, 6) multiple page exposure, 7) volume, 8) size of ad, 9) position, 10) competition.

Mail order Retailing without shops.

Mall intercept survey
Definition #1. Mall intercept is an interview survey carried out in a busy town center areas or on shopping centers.
Definition #2. Mall intercept is a survey technique conducted where foot traffic is high and in a place where the company's products or services are sold (or where people who need to be addressed are gathered).

Advantages of this type of face-to-face interviewing: 1. Response rates are relatively high, 2. Initial questions can be asked in order to check the suitability of the respondent, 3. Use of a structured questionnaire will ensure that questions are asked in correct form, 4. Targets can be set (percentage split between male and female respondents, for example), 5. The interviewer can check that question have been understood, 6. Respondents can be prompted to answer questions fully.

Disadvantages of this type of mall intercept survey: 1. Not all respondents will have sufficient knowledge of the product in the questions, 2. Such techniques are not appropriate for in-depth questions or probing the answers given, for example to determine the reason for consumer preference.

See also Interview.

Management Occupation which grew out of the clerical and accounting functions of early businesses, once these became professionalism and/or semi-automated.

14 Points for Management: 1) Create and publish to all employees a statement of the aims and purposes of the company or other organization. The management must constantly demonstrate their commitment to this statement; 2) Learn the new philosophy; 3) Understand the purpose of inspection; 4) End the practice of awarding on the basis tag alone; 5) Improve constantly; 6) Institute training; 7) Teach and institute leadership; 8) Drive out fear, create trust. Create a climate of innovation; 9) Optimize toward the aims and purposes of the company the effort of teams, groups, staff areas; 10) Eliminate exhortations for the workforce 11) (a) Eliminate numerical quotes for production. Instead, learn and institute methods for improvement; (b) Eliminate (management by objectives). Instead, learn the capabilities of processes and how to improve them; 12) Remove barriers that rob people of pride and workmanship; 13) Encourage education and self improvement for everyone; 14) Take action to accomplish the transformation (W. Edwards Deming)

Marketing management:
A Analysis: 1) Market research; 2) Marketing information system; 3) Decision support system;
B Planning: 1) Identification of selected target markets; 2) Forecasting future demand in each market; 3) Setting the levels of each element of the marketing mix for each target market;
C Control: 1) Setting quantifiable targets; 2) Checking performance against these targets.

Fayol's five management functions: 1) Planning and forecasting, 2) Organizing, 3) Commanding (leadership), 4) Co-ordination, 5) Controlling.

Leadership Guide (Caterpillar): 1) Develop people, 2) Foster positive work environment, 3) Adjust leadership style, 4) Build and support teams, 5) Empower others, 6) Give informal feedback, 7) Use positive disciplinary feedback, 8) Pursue self-development.

Our Common Values (Caterpillar): 1) Trust and Mutual Respect, 2) Teamwork, Empowerment, Risk Taking, Sense of Urgency, 3) Continuous Improvement, and Commitment, 4) Customer Satisfaction.

Marketing management trainee: 1. Personality attributes and interpersonal skills. 1.1 Good communicator, 1.2 Positive and outgoing, 1.3 Responsible; 2. Marketing capabilities: 2.1 Comprehensive understanding of the principles and practice of marketing, 2.2 Recognized examination qualifications, 2.3 Personal plan for further development; 3. Management capabilities: 3.1 Team worker and team builder, 3.2 Planning, implementing, monitoring and controlling capabilities, 3.3 Leadership, 3.4) Initiative, 3.5 Good motivation, 4. Customer, competition and product knowledge.

Management accounting is an integral part of management concerned with identifying, presenting and interpreting information used for: 1) formulate policy (pricing, discounting, credit terms and so on); 2) planning and controlling activities; 3) decision taking; 4) manage more effectively and efficiently scarce resources at their disposal; 5) disclosure to shareholders and others external to the entity; 6) disclosure to employees; 7) safeguarding assets, 8) plan and achieve goals; 9) monitor and assess performance (variance analysis, financial performance measures); 10) appreciate the financial implications of changes in the external environment; 11) appreciate the financial implications of changes in the internal environment (such as changes in structure, organization and processes); 12) compare and decide upon alternative courses of action; 13) control day to day operations; 14) focus attention on specific issues which really need attention; 15) solve specific problems; 16) make investment decisions.

Management buy-out is a transaction in which the executive managers of a business join with financing institutions to buy the business from the entity which currently owns it.

Management control is the process by which managers assure that resources are obtained and used effectively and efficiently in the accomplishment of the organization's objectives.

Management development is a job experience and learning from other manager, particularly one's immediate superior, are integral parts of the development process.

Management education is that process which results in formal qualifications up to and including post-graduate degrees.

Marketing implementation The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives. (Philip Kotler)

Management information system (MIS) is the combination of human and computer based resources that results in the collection, storage, retrieval, communication and use of data for the purpose of efficient management of operations and for business planning.

Management information system: 1. Executive information systems used at strategic level, for unstructured problems. 2. Decision support systems, 3. Expert systems are used principally at the operational level and assist in structured problems, 4. Transaction processing systems.

Tasks of management information system: 1) Presenting necessary information to managers, 2) Initiating transactions, 3) Recording transactions, 4) Processing data, 5) Producing reports, 6) Responding to enquiries.

Essential characteristics of an MIS: 1) The functions of individuals and their areas of responsibility in achieving company objectives should be defined, 2) Areas of control within the company (cost centers, budget centers) should be clearly defined, 3) Information required for an area of control should flow to the manager who is responsible for it.

Implementation of Management Information Systems (key stages): 1. Identification of a Problem (identification and analysis of the organization information requirements); 2. Feasibility study (identifying possible ways in which the proposal may be implemented); 3.(Existing) System Investigation; 4. Systems analysis (Examining why current methods are used, what alternatives might achieve the same results); 5. System Design (Imputes, program design, outputs, file design and security); 6. System Implementation (Acquisition of hardware, program testing, set-up, acquisition and installation of hardware etc.); 7. Review/Maintenance (Ensuring that the system meets the objectives set at the feasibility stage).

Management power Ways of managers influence to subordinates, colleagues or superiors: 1) Position power, 2) Physical power, 3) Resource power, 4) Expert power, 5) Personal power, 6) Negative power.

Management roles (Managerial roles): 1. Interpersonal roles (Ceremonial roles): 1.1 Figurehead - to act as mentor for staff, 1.2 Leader - to lead and motivate staff, 1.3 Liaison - to liaise with other departments, suppliers and customers; 2. Informational roles : 2.1 Monitor (receiving and evaluating information about the organization's performance), 2.2 Disseminator (communication information to others) , 2.3 Spokesperson ('PR' role for the department or even the organization); 3. Decisional roles: 3.1 Entrepreneur (taking initiatives and mobilizing people and resources to seize opportunities), 3.2 Disturbance handler (correcting mistakes, mediating and arbitrating in disputes), 3.3 Resource allocator (distribution of resources of people), 3.4 Negotiator (bargainings on behalf of the organization).

Trend in management thinking: 1) Empowerment staff, 2) Less management intervention.

Management skills assessing
Methods of individual assessment (Pedler, Burgoyne and Boydell): 1) Simple introspection, 2) Conversation with a partner, 3) Fill in a specially designed questionnaire.

Management training is the formal learning activities which may not lead to qualifications, and which may be received at any time in a working career.

Manager's characteristics: 1. The manager as a general practitioner: 1.1 To identify the symptoms in situation (low productivity, high labor turnover, severe industrial relations problems. 1.2 To diagnose the 'disease' or cause of the trouble. 1.3 To decide how it might be dealt with - develop a strategy for a cure. 1.4 To prescribe a treatment and monitor the program. 1.5 To develop strategies to prevent further 'sickness'. 2. The managerial dilemmas: 2.1 The dilemma of the cultures, 2.2 The dilemma of the time horizons (future/present), 2.3 The trust-control dilemma, 2.4 The commando leader's dilemma. 3. The manager as a person (characteristics): 3.1 Decisive, 3.2 Leadership, 3.3 Vision, 3.4 Trusting, 3.5 Pro-active, 3.6 Flexible, 3.7 Agile thinker, 3.8 Self-starter, 3.9 Improver, 3.10 Communicator, 3.11 Analytical, 3.12 Interested, 3.13 Alert, 3.14 Aware, 3.15 Trusted, 3.16 Knowledgeable, 3.17 Sensitive, 3.18 Persuasive, 3.19 Enthusiast, 13.20 A 'liker' of people.

Qualities influencing a manager's personal effectiveness: 1. Basic knowledge and information: 1.1 Command of basic facts, 1.2 Relevant professional understanding; 2. Skills and attributes: 2.1 Continuing sensity to events, 2.2 Analytical, problem-solving and decision/judgement-making skills, 2.3 Social skills and abilities; 3. Personal qualities: 3.1 Emotional resilience, 3.2 Proactivity - responding purposefully to events. 3.3 Creativity, 3.4 Mental agility, 3.5 Balanced learning habits and skills, 3.6 Self-knowledge.

Assessment of the organization's management team assessment: 1) Do they achieve the organization's objectives? 2) Do they do so with the resource available? 3) Have they in process added value to the organization in terms of image, training, new resources? 4) Have they achieved the above without compromising the long term future?

Managing directoris appointed chief executive by the board and is responsible for the day-to-day running of the business.

Managing styles (Styles of leadership):
1) Tells - the manager makes all the decisions, and issues instructions which must be obeyed without questions. Strengths: (a) Quick decisions can be made when speed is required. (b) It is the most efficient type of leadership for highly-programmed routine work. Weaknesses: (a) It does no encourage the subordinates to give their opinions when these might be useful; (b) Communications between the manager and subordinate will be one-way and the manager will not know until afterwards whether the orders have been properly understood; (c) It does no encourage initiative and commitment from subordinates.
2) Sells (persuasive) - The manager still makes all the decisions, but believes that subordinates have to be motivated to accept them in order to carry them out properly. Strengths: (a) Employees are made of the reasons for the decisions, (b) Selling decisions to staff might make them more committed, (c) Staff will have a better idea of what to do when unforeseen events arise in their work because the manager will have explained his intentions. Weaknesses: (a) Communications are still largely one-way. Sub-ordinates might not accept the decisions. (b) It does not encourage initiative and commitment from sub-ordinates.
3) Consults is the manager confers with subordinates and takes their views into account, but has the final say. Strengths: (a) Employees are involved in decisions before they are made; (b) An agreed consensus of opinion can be reached and for some decisions consensus can be an advantage rather than a weak compromise; (c) Employees can contribute their knowledge and experience to help in solving more complex problems. Weaknesses: (a) It might take much longer to reach decisions, (b) Subordinates might be too inexperienced to formulate mature opinions and give practical advice; (c) Consultation can too easily turn into a facade concealing, basically, a sells style.
4) Joins (democratic) - Leader and followers make the decision on the basis of consensus. Strengths: (a) It can provide high motivation and commitment from employees; (b) It shares the other advantages of consultative style (especially where subordinates have expert power). Weaknesses: (a) The authority of the manager might be undermined, (b) Decision-making might become a very long process, and clear decisions might be difficult to reach. (c) Subordinates might lack enough experience.

Margin of safety is a measure by which the budgeted volume of sales is compared with the volume of sales required to break even.

Marginal cost see Overheads/costs/expenses.

Marginal cost plus pricing / mark-up pricing Method of determining the sales price by adding a profit margin onto either marginal cost of production or marginal cost of sales.

Marginal costing (Period costing) is the accounting system in which variable costs are charged to cost units and fixed costs of the period are written off in full against the aggregate contribution. Its special value is in decision making.
In marginal costing, the identification of variable costs and of contribution enables management to use cost information more easily for decision-making processes (such as in budget decision making). It is easily to decide by how much contribution (and therefore profit) will be affected by changes in sales volume.
See also Absorption costing.

Marginal rate of taxation is the rate of tax on an additional unit of income earned.

Market
Definition #1. Market is a group of consumers who share some particular characteristic which affects their needs or wants, and which makes them potential buyers of a product.
Definition #2. Market is a situation in which potential buyers and potential sellers of a good or service come together for the purpose of exchange.
Definition #3. The set of actual and potential buyers of a product. (Philip Kotler)

Market access analysis Analysis as to bow easy it is to enter a market (e.g. government regulations regarding product quality and safety).

Market attractiveness : 1) Overall market size, 2) Market growth rate, 3) Competitive intensity, 4) Technological requirements, 5) Profit potential.

Market challenger A runner-up firm in an industry that is fighting to increase its market share. (Philip Kotler)

Market demand is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.

Market development see Ansoff matrix.

Market economy is an economy in which economic decisions are made by consumers, producers and owners of factors of production.

Market entry
Major criteria for the choice of country to enter: 1. Market attractiveness (GNP per head, forecast demand, etc.); 2. Competitive advantage (Prior experience in similar markets, language and cultural understanding); 3. Risk (Political stability, possibility of government intervention and similar external influences, Business risk, Currency risk).

Activity to make the decisions on the place of international expanding:
1. Strategic review/SWOT analysis;
2. Market and competitor research (marketing environment differences, market size, segmentation, cost factors, government support, etc.),
3. Establish a network of contacts;
4. Evaluation of entry strategies cost, investment, control, risk and return;
5. Evaluation of SLEPT factors:
5.1 Social; 5.2 Legal; 5.3 Economical (Level and trend in per capita income, Balance of payments, Inflation situation, Exchange rate situation, Convertibles of currency, ); 5.4 Political and 5.5 Technological.
6. Rethink the marketing mix and conformity to standards in context of country chosen.
7. Choose of media: 7.1 Press may not be appropriate in countries where levels of literacy are low; 7.2 TV ownership may not be widespread; 7.3 Outdoor tends to rely on visuals and it is therefore a good international medium; 7.4 Cinema is experienced in different ways. The quality of films varies considerably; 7.5 Radio is mainly a support medium across the world. Commercial stations may not be available.

Key decision relate to adapting the marketing mix : 1) Product - to standardize or to customize?, 2) Distribution (distribution density (intensity), channel length, channel alignment and leadership, distribution logistics), 3) Prices determined by local condition, with each market separate, 4) Promotion (sales promotion, sport promotion and sponsorship, direct marketing).

See below Market entry methods.

Market entry methods in international marketing (by increased risk and control):
A Indirect exporting: 1) Domestic purchasing, 2) Complementary exporting (Piggyback operations), 3) Export management houses, 4) Trading companies;
B Direct exporting and sharing activity: 5) Sales force, 6) Distributors and agents, 7) Franchising, 8) Direct marketing, 9) Contract manufacture, 10) Licensing, 11) Strategic alliance, 12) Joint venture, 13) Assembly operations;
C Direct ownership: 14) Company acquisition, 15) Wholly-owned subsidiary.

Selection factors of the methods : 1) Level of resources available, 2) Degree of control required, 3) Amount of commitment (from senior management), 4) Risks (political etc.), 5) Size of the company, 6) Stability, 7) Competitiveness of overseas market, 8) Government restriction and incentives, 9) Marketing objectives for international operations, 10) Company existing level of foreign involvement, 11) Human resources requirements, 12) Mode quality, 13) Learning curve requirements, 14) Market information feedback.

Direct exporting Exporting to overseas customers, who might be wholesalers, retailers or users, without the use of export houses etc.

Indirect exporting Use of intermediaries such as export houses, specialist export management firms, complementary exporting (i.e. using other companies' products to pull your own into an overseas market); i.e. the outsourcing of the exporting function to a third party.

Contract manufacture
In the case of contract manufacture a firm (the contractor) makes a contract with another firm (the contractee) abroad whereby the contractee manufactures or assembles a product on behalf of the contractor. The contractor retains full control over marketing and distribution whilst the manufacture is done by a local firm.
Advantages of contract manufacture include the following: 1) There is no need to invest in plant overseas, 2) Risk associated with currency fluctuation, is largely avoided, 3) The risk asset expropriation is minimized, 4) Control of marketing is retained by the contractor, 5) A product manufactured in overseas market may be easier to sell, especially to government customers, 6) Lower transport costs and, sometimes, lower production cost can be obtained.
Disadvantages of contract manufacture include the following: 1) Overseas contractee producers who are reliable and capable cannot always be easily identified, 2) Sometimes the contractee producer's personnel must relieve intensive and substantial technical training, 3) The contractee producer may eventually become a competitor, 4) Quality control problems in manufacturing may arise.
Contract manufacture is perhaps best suited : 1) to contrives where small size of the market discourages investment in plant, 2) to firm whose main strengths are in marketing rather in production.

Franchising - see Trading organizations.

Joint ownership Entering a foreign market by joining with foreign investors to create a local business in which the company shares joint ownership and control.

Joint venture is an arrangement of two or more firms join forces for manufacturing, financial and marketing purposes and each has a share in both the equity and management of the business.
Advantages of joint venture include the following: 1) Some government discourage or even prohibit foreign firms setting up independent operation; 2) Joint ventures are especially attractive to smaller or risk-averse firms, or where very expensive new technologies are behind researched and developed; 3) When funds are limited, joint ventures permit coverage of larger number of countries since each one requires less investment by each participator; 4) A joint ventures can reduce the risk of government intervention as a local firm is involved; 5) The participating enterprises benefit from all sources of profit; 6) Joint venture can provide close control over marketing and other operation, 7) A joint venture with an indigenous firm provides local knowledge, quickly.
Disadvantages of joint ventures is that there can be major conflicts of interests between the different parties. Disagreements may arise over: 1) profit shares, 2) amount invested, 3) the management of the joint venture; and 4) the marketing strategy.

Licensing is an alternative to foreign direct investment by which overseas producers are given rights to use the licensor's production process in return for royalty payments.
Licensing agreement is a commercial contract whereby the licensor gives something of value to the licensee for exchange for certain performances and payments. The licensor may provide any of following: 1) Rights to produce a patented product or use a patented production process, 2) Manufacturing know-how (unpatented), 3) Technical advice and assistance including the supply of essential materials, components, plants, 4) Marketing advice and assistance, 5) Rights to use a trademark or brand.
Licensing is growing in extent and importance through the world. It is used by all sizes of firms, as it has many advantages: 1) It requires no investment save the continuing costs of monitoring the agreement, 2) It enables entry into markets that would otherwise be closed, 3) As a mode of entry, it is relatively simple and quick, 4) The licensor gains access to knowledge of local conditions, 5) New products can be introduced to many countries quickly because of low investment requirements, 6) It provides all the usual benefits of overseas production, 7) It can be a source of competitive advantage, if it spreads the firm's proprietary technology, giving it wider exposure than that of rival.
Licensing also suffers from drawbacks, however: 1) Revenues from licensing are very low, usually less than 10% of turnover, 2) A licensee may eventually become the licensor's competitor, 3) Although the contract may specify a minimum sales volume, there is some danger that licensee will not fully exploit the market, 4) Product quality might deteriorate if the licensee has more lax attitude to quality control than licensor, 5) Governments may impose restrictions or conditions on payment of royalties to the licensor or on the supply of components, 6) It is often difficult to control the licensee effectively. The licensee's objectives often conflict with those of licensor and disagreements are common.

Wholly owned overseas production
Advantages of wholly owned overseas manufacture include the following: 1) The firm does not have to share its profits with partners of any kind; 2) The firm does not have to share or delegate decision making and so there are no loses in efficiency arising from inter-firm conflict; 3) There are none of the communication problems that arise in joint ventures, license agreements etc.; 4) The firm is able to operate a completely integrated and systematic international system.
Disadvantages of wholly owned overseas manufacture include the following: 1) The substantial investment funding required prevents some firms from establishing operations overseas; 2) Suitable managers, whether required in the overseas market or posted abroad from home, may be difficult to obtain; 3) Some overseas government discourage or even prohibit 100% ownership of an enterprise by a foreign company; 4) This mode of entry forgoes of overseas partner's market knowledge, distribution system and other local expertise.

Market failure is a situation in which the market mechanism fails to result in economic efficiency, and therefore the outcome is suboptimal.

Market forces refer to supply and demand and embrace all conditions and influences upon price and quantity.

Market follower A runner-up firm in an industry that wants to hold its share without rocking the boat. (Philip Kotler)

Market intelligence (market analysis): 1. Customer intelligence, 2. Competitor intelligence, 3. Secondary data: 3.1 Internal, 3.2 External.

Customer intelligence see Customer satisfaction, Segmentation.

Competitor intelligence see Competitor intelligence system and Competitors analysis.

Market penetration see Ansoff matrix and Pricing policies.

Market penetration pricing see Pricing policies.

Market leader The firm in an industry with the largest market share; it usually leads other firms in price changes, new product introductions, distribution coverage, and promotion spending. (Philip Kotler)

Market nicher A firm in an industry that serves small segments that the other firms overlook or ignore. (Philip Kotler)

Market positioning is the attempt by marketers to give the product a distinct identity or image so that it will be perceived to have distinctive features or benefits relative to competing products.

Key task in positioning: 1) Market segmentation, 2) Target market, 3) Differential advantage.

Developing a positioning strategy of Schultz, Tannenbaum and Lauterborn:
1. Target group and its characteristics: 1.1 Group characteristics in relation to your product, 1.2 Lifestyles, psychographics, attitudes, usage, 1.3 What does the group want from the product? 1.4 What is the buying incentive? 1.5 I want that product because ..........................
2. Does the product fit the group? 2.1 Why is it different? 2.2 How does the customer perceive it? 2.3 Does the product fit the group?
3. How will the competition react? 3.1 What do competitors communicate? 3.2 How are competitors perceived by the consumers? 3.3 How will the competition retaliate?
4. What are the competitive advantages? 4.1 There must be at least one real benefit, 4.2 We must be better than the competition, 4.2 Can the advantages be summarized in one simple sentence?
5. How will communications make the benefit believable?
6. What should the personality of the brand be?
7. How will the consumer perceive the product?
8. What action should the consumer now take?
9. What is the most effective way to reach the consumer?
10. List the research needed for the further development of the marketing communications strategy.

See also Segmentation.

Market potentialis the total amount of a product customers will buy within a certain time period at a certain level of industry-wide marketing activity.

Market power is the ability of the firm to control its competitive environment.

Market research Sometimes used synonymously with marketing research, but refers to the acquisition of primary data about customers and customer attitudes for example, by asking a sample of individuals to complete a questionnaire.

Market research should allow an organization to ascertain different types of information: 1. Market information: 1.1 The total size of the market and own share, 1.2 Potential for growth, 1.3 Likely threads and opportunities; 2. Competitor information: 2.1 Who they are, 2.2 Their relative market shares, 2.3 Their own strengths and weaknesses, 2.4 Their marketing strategy; 3. Customers information: 3.1 Their opinion of your organization, 3.2 The effectiveness of your promotional campaigns and your sales force and those of competition, 3.3 Their likely future purchases, 3.4 Who key decision makers are, 3.5 Logical segments.

Situation where it is unrealistic or impractical to commission research: 1. Where the cost would, 2. Where the potential results would not be useful, 3. Where unfavorable results would be ignored, 4. Where time pressures do not allow primary to be carried out.

Also see Forecast, Sales potential.

Market segment A group of consumers who respond in a similar way to a given set of marketing stimuli. (Philip Kotler)

Market segmentation see Segmentation.

Market share One entity's sales of a product or service in a specified market expressed as a percentage of total sales by all entities offering that product or service. A planning tool and a performance assessment ratio.

Market signals are information that comes to light about competitors. actions in the market: 1) A competitor making announcement of what he intends to do, but before he has done it, 2) A competitor making an announcement of what he has done, after the event, 3) Competitor adopting a particular course of action when they have been expected to do something to do something else, 4) An aggressive marketing action by a competitor.

Market size is the total value or volume of turnover/sales for a product.

Market skimming see Pricing policies.

Market structure classifies the competitive characteristics of a market in terms of : 1) the number of firms, 2) the nature of the product 3) barriers to entry, 4) nature of competition situation (monopoly, oligopoly, perfect competition), 5) stage of the product life cycle, 6) level of the product penetration, 7) marketing mixes of competitors, 8) oligopoly.

Market targeting Evaluating each market segment's attractiveness and selecting one or more segments to enter. (Philip Kotler)

Market test See Test marketing.

Marketing
Definition #1. Marketing is the management process, which identifies, anticipates and supplies customer requirements efficiently and profitably.
Definition #2. Marketing is concerned with meeting business objectives by providing customer satisfaction.
Definition #3. Identification and satisfaction of customer needs profitably.
Definition #4. A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. (Philip Kotler)

Key values of future marketing success : 1) Clearness, 2) Honesty, integrity, trust and readability in relationships, 3) Openness - fully informing customers / other shareholders, 4) Fair play with competitors, 5) Care of the environment and pursuit of sustainability, 6) Value for the money, 7) Continuous improvement in product quality and design, 8) Decency and moral values in advertising / promotions.

Marketing audit
Definition #1.A comprehensive, systematic, independent, and periodic examination of a company's environment, objectives, strategies, and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company's marketing performance. (Philip Kotler)
Definition #2. Marketing audit is means to apply strategic control to ensure that marketing policies are optimal.
Definition #3. Marketing audit is a part of the position audit which reviews the organization's products, markets, customers and market environment: a comprehensive, systematic, independent and periodic examination of a company's or business unit's marketing environment, objectives, strategies and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve the company's marketing performance.

A marketing audit should consider the following:
1) The marketing environment (What are the organization's major markets, and how are these markets segmented? How are these market segments likely to change? Who are our customers, what is known about their needs, intentions and behavior? Who are our competitors, and what is known about them? Have there been any significant developments in the broader environment (e.g. economic or political changes, population or social changes);
2) Marketing objectives and plans (What are the organization's marketing objectives with respect to its products or services and how do they relate to overall corporate objectives? Is allocation of resources being committed to marketing sufficient to enable the objectives to be achieved? Are the costs arising between products, areas etc. satisfactory? Is expenditure allocated to direct selling, advertising, distribution etc. appropriate for the objectives being pursued? What procedures are in place for formulating marketing plans and exercising management control of these plans; are they satisfactory? Are marketing organizations (and personnel) operating efficiently?

3) Marketing activities (A review of sales price levels (looking at, for example, supply demand, customer attitudes or the use of temporary price reductions. A review of the state of each individual product (its market 'health') and of the product mix as a whole. A critical analysis of the distribution system. A review of the size and organization of the personal sales force. A review of the effectiveness of advertising and sales promotion activities.)

Marketing budget A section of the marketing plan that shows projected revenues, costs, and profits.
Also aee Budget.

Marketing communications are all forms of communications between an organization and its customers or clients. Marketing communications are following: 1. The meeting of marketing objectives; 2. The degree of integration; 3. Cost effectiveness and long term investment.

Objectives of marketing communications - the Ehrenberg's ATR process (Awareness-Trial-Reinforcement): 1. To increase brand awareness and to establish brand recognition, 2. To stimulate trial purchase, 3. To stimulate and safeguard brand loyalty.

To succeed in achieving these goals communication must: 1. Gain attention, 2. Communicate a message, 3. Improve attitude to the brand, 4. Reinforce the already positive attitude to the brand, 5. Obtain the readers'/listeners'/viewers' linking for the message and its execution.

See also Communication model.

Marketing communications effectiveness
Measuring effectiveness of marketing communications:
1. The meeting of marketing objectives:
1.1 Recognition (awareness) of our brand by target groups - changing attitude and behavior, 1.2 Brand market share, 1.3 Achievement of sales objectives (sales volume and number of new accounts), 1.4 Achievement of distribution penetration, 1.5 Levels of customers satisfaction, 1.6 Profitability - media and creativity effectiveness;
2. The degree of integration - Leverage:
2.1 Consistency of the messages, 2.2 Acceptability, compatibility and synergy of methods, 2.3 Addressability of strategic and tactical issues, 2.4 Possibility of cost savings, 2.5 Innovation.
3. Cost effectiveness and long term investment:
3.1 Cost effectiveness of campaign, 3.2 Justifying campaign financially in the short term, 3.3 Justifying campaign financially as a long term investment.

Basic questions form the basis of analysis in communications of Lasswell:
1. Who is the communicator? In this, control analysis, the main task is to discover the purpose of the sender so that his or her message can be correctly interpreted.
2. What is the content of the message? Content analysis very often revolves around the questions of informative and persuasive messages.
3. Who is the audience for this message is intended? Audience analysis is concerned with identifying of prospects, the target audiences and the segmentation of markets.
4. What information media or means of transmitting the message are employed? Media analysis can be viewed as discovering where audiences are located and selecting the media and media vehicles that will reach them most effectively. 5. What behavior follows the receipt of the message? Effect analysis is concerned with the relationship between message content and the subsequent behavior of the audience.

The following principles are valuable in assessing the effectiveness of communication campaigns: 1. Valuable linkage - Communication must represent the value of the brand. 2. Sense making - Communication must be meaningful and relevant. 3. Simplification - Strict simplification is necessary in view of the avalanche of information. 4. Acceleration - The message must be transmitted in a few seconds. 5. Visualization - We must communicate visually first and foremost. 6. Humanization - Communication must relate to the lives and dreams of real people. 7. Emotionalisation - Communication should activate the receiver's feeling more. 8. Conditioning - Effective use requires strong, unambiguous, vivid stimuli. 9. Refreshment - Receivers can become bored or tired of campaigns. 10. Branding - The brand has to be an integrated part of communications. 11 Entertainment - Entertainment can be extremely effective in some cases. 12. Consistency - Consistency has been the mainstay of major brand.

Marketing communications strategy and planning

Formulation the objectives of the (marketing communications) campaign (Geoff Lancaster and Lester Massingham):
1. To which consumer group should the communications be directed? - Segmentation;
2. What information will these consumer groups seek from our communications when deciding whether or not to buy? - Marketing research;
3. What objectives should be set in order to communicate effectively with these groups? - Marketing research;
4. How much will it cost to achieve these objectives? What size should the total budget be? - Budgeting
5. How should this total budget be appropriate among various marketing activities available? - Promotional mix and Media
6. How much responsibility is to be assumed by the manufacturers and by the manufacturers and by channel intermediaries? - Advertising agencies
7. How might the effectiveness of the campaign be evaluated and controlled? - Advertising effectiveness and Marketing communications effectiveness.

A model which bridges the marketing planning/marketing communications planning area is the SOSTAC model of Paul Smith and Alan Pulford. SOSTAC is 1) Situation Analysis, 2) Objective setting, 3) Strategy development, 4) Tactics, 5) Actions, 6) Control.
Steps of the planning communications process and appropriate marketing communications models:
1. Where are we now? - Situation Analysis: 1.1 Internal Analysis - Marketing mix, 1.2 Competitive Analysis - Porter's competitive forces, 1.3 External Analysis - Environmental changes;
2. Where are we going? - Objectives: Simon Majaro's planning hierarchy;
3. How do we get there - broad direction? - Strategies: 3.1 Ansoff matrix, 3.2 Product life cycle, 3.3 Boston classification, 3.4 Porter's generic 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.

Benefits of marketing communication strategy: 1) being highly effective, 2) being cost efficient, 3) reinforcing messages to consumers.

Marketing communication strategies and examples of tactic issues of Schultz, Tannenbaum and Lauterborn: 1. To make the consumer aware - Corporate identity; 2. To inform the consumer - Brand identity; 3. To educate the consumer - Advertising; 4. To excite the consumer - Public relations; 5. To action the consumer to buy - Sales promotions; 6. To change the consumer's perception - Direct marketing; 7. To improve the consumer's loyalty - Personal selling; 8. To get the consumer to buy - Word of mouth; 9. To keep the consumer happy - Sponsorship; 10. To reward the consumer - Exhibitions; 11. To stimulate the consumer - Packaging; 12. To get the consumer to respond - Merchandising; 13. To make a promise - Literature; 14. To fulfil a promise - Product design; 15. To match competition - Pricing policies; 16. To beat the competition - Distribution policies.

See also Marketing plan.

Marketing concept The marketing management philosophy which holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors. (Philip Kotler)

Marketing control process: 1) Discuss, develop and decide upon Marketing Objectives, 2) Establish performance measures and standard, 3) Evaluate actual performance against established standards (sales levels, market share, marketing costs, profitability, customer satisfaction), 4) Take corrective action as necessary, 1) . . .

Marketing control and evaluation techniques for retail company: 1) mystery retail shoppers, 2) formal store checks, 3) retail audit, 4) consumer survey, 5) on pack offer responses, 6) hall tests for presentation, packaging etc, taste tests and focus group discussion for new product introductions, 7) test marketing.

Marketing culture A corporate culture geared toward customer satisfaction through marketing concepts and procedures. (Courtland L. Bovee, John V. Thill)

Marketing department
The organization of marketing department must allow the following objectives to be reached: 1) Efficient coordination of all marketing activities, 2) Sufficient flexibility to respond quickly to charges in the market place, 3) Adequate ability to produce new ideas and motivate the organization to challenge traditional beliefs, 4) Permanent provision of the right mix of specialization in marketing tasks and product and market knowledge.

Traditional organization of marketing departments: 1. Market research: 1.1 Market information, 1.2 Potential customers, 1.3 Customer requirements, 1.4 Competitor analysis; 2. Advertising/Promotion: 2.1 Advertising, 2.2 Trade fairs, 2.3 Sales promotion, 2.4 Public relations; 3. Distribution/order handling: 3.1 Transport, 3.2 Warehousing, 3.3 Order receipt, 3.4 Order tracking; 4. Field/selling: 4.1 Sales administration, 4.2 Sales training, 4.3 Sales planning, 4.4 Sales records; 5. Product planning: 5.1 Product selection, 5.2 Product features, 5.3 Pricing, 5.4 Product servicing.

Marketing environment
Definition #1. Marketing environment The actors and forces outside marketing that affect marketing management's ability to develop and maintain successful transactions with its target customers. (Philip Kotler)
Definition #2. Marketing environment embraces not only competitors, customers and supply chain participants over whom the business can exert some influence but also the wider SLEPT factors.

Marketing environment differences are of particular relevance to the international marketing communicator: 1. Material culture (level of demand, quality and types of products demanded, functional/usage characteristics, nature of products demanded), 2. Social institution (Social organization, political structures, family/household roles), 3. Belief system (beliefs and religious, philosophical and political ideologies), 4. Aesthetics, 5. Language, 6. Dress and appearance, 7. Learning, 8. Work habits, 9. Verbal and non verbal communications.

Regional trading groups: 1) Free trade areas, 2) Customs unions, 3) Economic unions.

Marketing era The period that began in the 1950s and continues today, during which companies formed marketing departments, began to pay attention to customer wants and needs, and started to implement the marketing concept. (Courtland L. Bovee, John V. Thill)

Marketing ethics The moral sensibility that guides marketing choices and activities. (Courtland L. Bovee, John V. Thill)

Marketing information system (MkIS)
Definition #1. Marketing information system is a continuing and interacting structure of people, equipment and procedures to gather, sort, analyze, evaluate and distribute pertinent, timely and accurate information for use by marketing decision makers to improve their marketing planning, implementation and control. (Kotler)
Definition #2. Marketing information system is the framework for day-to-day managing and structuring of information gathered regularly from sources both inside and outside an organization. The role to the MkIS is to asses information needs, produce and distribute this information at the right cost and time. The marketing and sales information system needs to provide management with a continuous (planned) stream of data which will be able to provide assistance with the following: (a) Assessment of current performance, (b) Appropriate performance measures to control, decide and plan future activities, (c) Comparative data (and information) through time and across companies/industries (such as key financial ratios), (d) Resource allocation decisions (the information including comparative cost data, activity based costing/management systems information, qualitative data and quantitative market research), (e) Time series analysis (Trend analysis), (f) Forecasting, (g) Strategic planning, (h) Strategic issue analysis (for example, data for SWOT analysis will be required), (i) Operational control, (j) Operational planning, (k) The identification of problem areas, (l) The identification of potential opportunities, (m) The identification of further information needs, (n) Gap analysis, (o) Pricing policy, (p) Marketing mix decisions, (q) Logistics, (r) Inventory control, (s) Communication strategies (including promotion and advertising), (t) Consumer reactions, expectations and attitudes, (u) Competitor tracking and monitoring.

Important design criteria of the Marketing information system: 1. Management's access to the information must be easy and direct, 2. The cost of data/information gathering should be minimal, 3. Data gathering should be low intensity, 4. Data gathering should be regular and continuous.

Key elements of the Marketing Information System (MkIS) (Kotler):
1. Internal database is an information about the organization from within the organization. Internal records are internal statistics of the organization, often collected for accounting purposes.
2.Marketing intelligence is a set of procedures for gaining information about the marketing environment. It is concerned with data collected by sales representatives, articles extracted from newspapers and trade journals, competitors' literature supplied by friendly customers etc.
3. Marketing research system includes any systematically collected trend data (research into the market, sales, products, price, distribution and promotion).
4. Marketing decision support system is a set of spreadsheets and models that can be used to make information gained more meaningful. It allows the data from the databases to be manipulated to produce forecasts and to examine different scenarios.

The structure of an MkIS:
1. Marketing managers: 1.1 Analysis, 1.2 Planning, 1.3 Implementation, 1.4 Control;
2. MkIS: 2.1 Assessing information needs, 2.2 Distribution information, 2.3 Internal records: 2.3.1 reports of orders, sales, 2.3.2 dispatches, 2.3.3 accounts payable, 2.3.4 receivable), 2.4 Marketing decision support analysis (regression and correlation analysis, sales forecasting, time series analysis, product design and site selection models), 2.5 Marketing intelligence system: 2.5.1 happenings data, 2.5.2 information on developments in the environment, 2.5.3 wide range of intelligence, 2.6 Marketing research: 2.6.1 Problems, 2.6.2 Opportunities, 2.6.3 Effectiveness;
3. Marketing environment: 3.1 Target markets, 3.2 Marketing channels, 3.3 Competitors, 3.4 Environment forces.

Typical items of an MkIS:
1. Applications of MkIS: 1.1 Control system: 1.1.1 Control of marketing costs, 1.1.2 Diagnosing of poor sales performance, 1.1.3 Flexible promotion strategy; 1.2 Planning system: 1.2.1 Forecasting, 1.2.2 Promotional forecasting and corporate long-range planning, 1.2.3 Credit management, 1.2.4 purchasing; 1.3 Research systems: 1.3.1 Advertising strategy, 1.3.2 Pricing strategy, 1.3.3 Evaluation of advertising expenditure.
2. Benefits of MkIS:
2.1 Control system: 2.1.1 more timely computerized reports, 2.1.2 flexible on-line retrieval of data, 2.1.3 automatic spotting of problems and opportunities, 2.1.3 cheaper, more detailed and more frequent reports, 2.2 Planning system: 2.2.1 automatic translation of terms and classifications between departments, 2.2.1 systematic testing of alternative promotional plans, 2.2.2 programmed executive decision, 2.2.3 detailed sales reporting permits automation of management decisions; 2.3 Research systems: 2.3.1 additional manipulation of data is possible when stored on computer in an unaggregated file, 2.3.2 improved storage and retrieval capability allows new types, 2.3.3 well-designed data blanks permit integration and comparison of different sets of data.
3. Benefits as applied to the applications:
3.1 Control system: 3.1.1 undesirable cost trends are spotted quickly so that corrective action may be taken sooner, 3.1.2 executives can ask supplementary questions of the computer to help pinpoint reasons for a sales decline, 3.1.3 fast-moving fashion items are reported daily for reorder and slow moving items are reported for price reduction, 3.1.4 on-going evaluation of promotional campaign permits reallocation of funds to areas behind target, 3.2 Planning system: 3.2.1 survey-based forecasts of demand for individual goods can be automatically translated into parts requirements and production schedules, 3.2.2 simulation models, both developed and operated with the help of data bank information can be used for promotional planning, 3.2.3 credit decisions are automatically made as each order in processed; 3.3 Research systems: 3.3.1 sales analysis is possible by new market segment break-downs, 3.3.2 systematic recording of information about past P&D contract bidding situation allows improved bidding strategies, 3.3.3 advertising expenditures are compared to shipments by country to provide information about advertising effectiveness.

The information of an MkIS (key strategic questions):
1. Stages of planning: 1.1 Where are we now? - Strategic, financial and marketing analysis, 1.2 Where do we want to be? - Strategic direction and strategy formulation, 1.3 How might we get there and which way is best? - Strategic choice and evaluation, 1.4 How can we ensure arrival? - Strategic implementation and control.

2. Information needed: 2.1 Where are we now?  - 2.1.1 Current sales by product/market, 2.1.2 Market share by product/market, 2.1.3 Competitor shares by product/market, 2.1.4 Corporate image versus competitors. , 2.1.5 Company strengths and weaknesses, 2.1.6 Financial position versus competitors. ; 2.2 Where do we want to be?  - 2.2.1 Market forecast by segment, 2.2.2 Environment changes, 2.2.3 Opportunities and threads, 2.2.4 Growth capabilities, 2.2.5 Competitor response, 2.2.6 New product/market potentials; 2.3 How might we get there and which way is best? - 2.3.1 Marketing mix evaluation, 2.3.2 Buying behavior, 2.3.3 New product development, 2.3.4 Risk evaluation, 2.3.5 Alternative strategic options; 2.4 How can we ensure arrival? . Performance evaluation as stage 1.

3. Sources of information: 3.1 Where are we now?  - 3.1.1 Internal accounting, 3.1.2 Market analysis/surveys, 3.1.3 Competitor intelligence, 3.1.4 Customer surveys, 3.1.5 Internal/External analysis, 3.1.6 Company accounts; 3.2 Where do we want to be? - 3.2.1 Customer surveys, 3.2.2 and 3.2.3 PEST audits, 3.2.4 PIMS, 3.2.5 Competitor research, 3.2.6 Product/market research; 3.3 How might we get there and which way is best?  - 3.3.1 Internal/external audits, 3.3.2 Customer research, 3.3.3 Concept testing/Test marketing, 3.3.4 Feasibility studies/CVP analysis, 3.3.5 NPV analyzes / competitor response modeling / focus groups / marketing mix research; 3.4 How can we ensure arrival? - Internal accounting / external auditing as stage 1.

Cost and organizational practice implications of an MkIS: 1. Training of existing and new staff, 2. Specialist skills of staff, change of job descriptions and specifications, 3. Relocation of duties and degree to which the system should be centralized, 4. Costs: 4.1 Specialist staff, 4.2 Retraining, 4.3 Equipment, 4.4 System running costs, 5. No display of immediate benefits.

Components of a computerized MkIS: 1. Data bank to store raw marketing data; 2. Statistical bank to store programs for carrying out computations for sales forecasts, making advertising spending projection, calculating sales force productivity, etc.; 3. Model bank to store marketing models for planning and analysis, 4. Display unit to allow the marketing manager to communicate with a MkIS.

Marketing intelligence system is a set of procedures and sources used by managers to obtain everyday information about pertinent developments in the marketing environment.

Managers' ways to scan the environment: 1) Undirected viewing, 2) Conditional viewing, 3) Informal search, 4) Formal search.

Marketing intelligence system: 1. Provides happenings data, 2.Provides information on developments in the environment, 2.5.3 Scans and disseminates a wide range of intelligence.

Improving marketing intelligence system: 1. Increased use of salespeople as intelligence agents, 2. Additional intelligence sources, 3. Purchasing data from special marketing intelligence sources, 4. Processing of intelligence by providing the system for: 4.1 evaluation, 4.2 abstraction, 4.3 dissemination, 4.4 storage and 4.5 retrieval.

Marketing management The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives. (Philip Kotler)

Marketing management process is the process of: (1) analyzing marketing opportunities, (2) selecting target markets, (3) developing the marketing mix, and (4) managing the marketing effort.

Marketing mix is the set of controllable variables and their levels that the firm uses to influence the target market. The mix comprises Product, Place, Price, Promotion (the 4 Ps). In service industries, this can be expanded to include People resources, Processes employed, Physical evidence of service and Periodicity and seasonality.

Extended marketing mix: 1) Product, 2) Price, 3) Place (distribution), 4) Promotion; in services, includes 5) People, 6) Processes, 7) Physical evidence, 8) Periodicity;
in extended mix (Internal situation analysis): 9) Profitability and Effectiveness, 10) Positioning in the market, 11) Planning systems, 12) Performance of the organization.

Marketing objectives See Objectives, Marketing objectives for international operations and Simon Majaro's planning hierarchy.

Marketing opportunity analysis (Internal factors):
1) Marketing: (a) Success rate of new product launches, (b) Advertising: evaluating advertising strategies and individual campaigns, (c) Market shares and sizes: is the organization in a strong or weak position? (d) Portfolio of business units: new, growth, mature and declining markets., (e) Sales force organization and performance, (f) Service quality, (g) Customer care strategies: nature of markets targeted;
2) Products: (a) Sales by market, area; product groups, outlets etc., (b) Margins and contributions to profits from individual products, (c) Product quality, (d) Product portfolio: age and structure of markets, (e) Price elasticity of demand and price sensitivity of demand for products;
3) Distribution: (a) Delivery service standards - lead times for competitors and products, (b) Warehouse delivery fleet capacity, (c) Geographical availability of products; 4) Research and development (R&D): (a) R & D projects in relation to marketing plans, (b) Expenditure on R & D relative to available assets, (c) Evaluation of R & D in new products/variations on existing products, (d) Appropriateness of R & D workload and schedules to competitor activity;
5) Finance: (a) Availability of short term and long term funds, cash flow, (b) Contribution of each product to cash flow, (c) Returns on investment from individual products, (d) Accounting ratios to identify areas of strength or weakness in performance;
6) Plant and equipment and other facilities. Production: (a) Age, value, production capacity and suitability of plant and equipment, (b) Valuation of all assets, (c) Land and buildings: location, value, area, use, length of lease, book value, (d) Achievement of 'critical mass' of output capacity (economies of scale), (e) Asset evaluation (age, condition, quality, property etc);
7) Management and staff: (a) Age profile, (b) Skills and attitudes, (c) State of industrial relations, morale and labor turnover, (d) Training and recruitment facilities, (e) Manpower utilization, (f) Management team strengths and weaknesses;
8) Business management: organization: (a) Organization structure in relation to the organization's needs, (b) Appropriateness of management style and philosophy, (c) Communication and information systems;
9) Raw material and finished goods stocks: (a) The sources and security of supply, (b) Number and description of items, (c) Turnover periods. (d) Storage capacity, (e) Obsolescence and deterioration, (f) Pilfering, wastage.

Marketing order The US Department of Agriculture has encouraged marketing orders that define specific growing areas for specialty products. ... Once producers agree on a designated area and obtain USDA approval for a marketing order, regulations typically govern quality factors such as grade, size, and other product characteristics. (Philip Kotler)

Marketing plan should summarize a company's marketing strategy. The plan serves as a guideline for all the people involved in the company's marketing activities.
A clearly written marketing plan offers five immediate benefits: 1) written plans are not as easily forgotten, overlooked, or ignored by those in charge of implementing them; 2) written plans are easier to communicate to other and are less likely to be misunderstood; 3) written plans allocate responsibilities and provide for an evaluation of responsibilities; 4) written plans indicate a serious approach and can be of great help in seeking financing; 5) writing plans clearly state what will be required and thus help to ensure the management's commitment.

Components of a marketing plan and information needed: 1. Executive summary - Results of all the phases of the marketing planning process; 2. Market analysis - 2.1 Market volume and market potential, 2.2 Competitive situation, 2.3 Price level of the market, 2.4 Existing market structure; 3. Objectives - 3.1 Company weaknesses and existing (or achievable) strength, 3.2 Strengths and weaknesses of competitors (specific needs of product users); 4. Marketing strategy - 4.1 Stage of the product in its life cycle, 4.2 Possibilities of influencing the market cost structure in comparison with competitors, 4.3 Importance of the price as purchasing criteria; 5. Action program - Detailed measures required to achieve the objectives of the marketing mix; 6. Projected final results - 6.1 Estimates of marketing, 6.2 Estimates of sales revenues.

Long-range plan :
A marketing plan that describes the major factors and forces affecting the organization over the next several years and outlines long-term objectives, the major marketing strate-gies that will be used to attain them, and the resources required. (Philip Kotler)

See also Planning, Marketing planning.

Marketing research The function that links the consumer, customer, and public to the marketer through information used to identify and define marketing opportunities and problems; to generate, refine, and evaluate marketing actions; to monitor marketing performance; and to improve understanding of the marketing process. (Philip Kotler)
The objective is gathering, recording and analyzing of all facts about problems relating to the transfer and sales of goods and services from producer to consumer or user. Includes market research, Pricing research etc. Marketing research involves the use of secondary data (e.g. government surveys) in desk research as well as field research (which the firm undertakes itself) to acquire primary data.

Marketing research is a key of element in marketing information system. It is many concerned with information about markets and the reaction of these to product, price, distribution and promotion decision. Data can be gathered from secondary (e.q. directories, reports) or primary (e.q. surveys) sources.

Areas of primary research: 1) Experimentation: price sensitivity, acceptability and effectiveness of advertisements. 2) Observation: study of customers. buying behavior, level of service the company providing. 3) Questionnaires and interviews.

Types of marketing research:
1. Market research: 1.1 analysis of the market potential for existing products; 1.2 forecasting likely demand for new products; 1.3 sales forecasting for all products; 1.4 study of market trends; 1.5 study of the characteristics of the market; 1.6 analysis of market shares.
2. Product research: 2.1 customer acceptance of proposed new products; 2.2 comparative studies between competitive products; 2.3 studies into packaging and design; 2.4 forecasting new users for existing products; 2.5 test marketing; 2.6 research into development of a product line (range).
3. Pricing research: 3.1 analysis of elasticity's of demand; 3.2 analysis of costs and contribution or profit margins; 3.3 the effect of changes in credit policy on demand; 3.4 customer perceptions of price (and quality).
4. Advertising and communications research: 4.1 motivation research for advertising and sales promotion effectiveness; 4.2 analysis the effectiveness. of advertising on sales demand; 4.3 analysis the effectiveness of individual aspects of advertising such as copy and media used; 4.4 establish sales territories; 4.5 analyzing the effectiveness of salesmen; 4.6 analyzing the effectiveness of other sales promotion methods.
5. Distribution research includes: 5.1 the location and design of distribution centers; 5.2 the analysis of packaging for transportation and shelving; 5.3 dealer supply advertising requirements; 5.4 the cost of different methods of transportation and warehousing.
6. Sales promotion research: 6.1 Effectiveness of advertising and sales promotion initiatives, 6.2 Motivation research, 6.3 Relative benefits of alternative sales promotion techniques.

Approaches to conducting marketing research:
1. Brief and commission an external marketing research agency or consultant to design and conduct the research:
1.1 Advantages: 1.1.1 External agencies specializing in research will have the necessary expertise in marketing research techniques. This should allow them to develop a cost-effective research program to a tighter timescale; 1.1.2 Skills in monitoring and interpreting data will allow the program to be reviewed and modified as required; 1.1.3 There will be minimal disruption to the normal working of the marketing department which might result from releasing internal staff from existing duties; 1.1.4 An external agency can provide an objective input without the bias which often results from a dependence on internal resources; 1.1.5 Costs can be determined from the outset, thereby allowing better budgetary control.
1.2 Disadvantages: 1.2.1 A high caliber member of staff will be needed to form a link between our organization and the external agency. Such a person would need sufficient time to devote to the project. If the nominated person is the marketing manager, he/she might be too busy with other duties; 1.2.2 Agency knowledge of the industry will be limited. This would be a serious drawback if the agency requires disproportionate amount of time to familiarize itself with the sector; 1.2.3 'Chemistry' needs to be right for the relationship to work.
2. Design and conduct a research program in-house:
2.1 Advantages: 2.1.1 Costs can be absorbed into existing departmental overheads; 2.1.2 It offers an opportunity to broaden the experience and skills levels of existing staff; 2.1.3 It might be useful in promoting team spirit and encouraging a 'result-oriented' approach.
2.2 Disadvantages: 2.2.1 There is a danger of overstretching current resources and adversely affecting other projects; 2.2.3 There is a risk of developing an inappropriate program, yielding insufficient or poor quality data with inadequate analysis and control; 2.2.4 Bias could result from using staff with pre-conceived views; 2.2.5 Company politics may influence the results; 2.2.6 Considerable computing resources with appropriate software packages would be required to analyze the data; 2.2.7 There may be lack of appropriate facilities.
3. Use an external agency for one part of research and use in-house marketing personnel for another one. With a combination approach it is possible to draw on the inherent benefits of both in-house resources and external agencies whilst minimizing potential disadvantages.

Brief for an external marketing research agency:
1. The objectives of the research and the background to the situation; 2. Details of any existing (secondary) data, both internal and external; 3. A profile of company's current customers along with detail of the benefits and features of company's product range to all potential purchases and any data on the target segment; 4. The type of research envisaged, such as face-to-face interviews, telephone or mail surveys etc.; 5. The type of data to be collected, quantitative, qualitative or both; 6. Guidelines company to the subjects that the questions should cover; 7. An indication company to whether analysis alone is required or whether recommendations should be included; 8. A realistic timetable; 9. Details of whom to contact (decitionmakers), on both sides, for any further discussions; 10. The budget or details of the date by which the tender must be submitted.

Marketing quantitative research process (Jobber): 1) Define the problem and research objectives; 2) Prepare a research proposal stating the survey design and cost; 3) Conduct exploratory research; 4) Design the questionnaire; 5) Select the sample; 6) Chose the survey method (telephone, postal or face-to-face); 7) Conduct the interviewing; 8) Analyze and interpret the results; 9) Prepare a report; 10) Make a presentation.

Marketing quantitative research process (Webb): 1. Set objectives, 2. Define the research problem, 3. Assess the value of the research, 4. Construct the research proposal, 5. Specify the data collection methods, 6. Specify the measurement techniques, 7. Select the sample, 8. Collect data, 9. Analyze results, 10. Present the results.
Steps 1 to 3 will form the basis of the research brief which the company needs to submit to the agency. Steps 4 to 6 form the structure of the research proposal which the agency is required to construct. Steps 8 to 10 comprise the program in action.

Biased samples and sources of sampling error: 1. Poorly defined or communicated research objectives; 2. Measurement error; 3. Badly-defined population; 4. Inaccurate sampling frame: 4.1 Unrepresentative random sample, 4.2 Selection error (non-random sampling); 5. Errors caused by non-response; 6. Mistaken responses, 7. Data processing, 8. Collection errors, 9. Data analysis errors.

Main headings of a research plan: 1. Data resources: 1.1 Primary data (data the organization collects itself for the purpose), 1.2 Secondary data (data collected by someone else for another purpose which may provide information about the current issues); 2. Type of data required: 2.1 Continuous/ad hoc, 2.2 Quantitative (numbers), 2.3 Qualitative (important insights), 3. Research methods: 3.1 Observation, 3.2 Focus groups, 3.3 Survey, 3.4 Experiment; 4. Research tools: 4.1 Interviews (semi-structured, structured, unstructured; open vs. closed questions), 4.2 Questionnaires, 4.3 Mechanical tools (video, audio); 5) Sampling plan (if required): (i) Sampling unit, (ii) Sample size, (iii) Sample procedure; 6) Contact methods: (i) Telephone, (ii) Mail, (iii) Personal.

Marketing services agencies Marketing research firms, advertising agencies, media firms, marketing consulting firms, and other service providers that help a company to target and promote its products to the right markets. (Philip Kotler)

Marketing software See Examples of marketing databases and software.

Marketing strategy See Strategy.

Maslow hierarchy of needs see Model.

Mass production is a type of flow production in which products (e.g. cars) are made in a fixed sequence on a continuously running assembly line.

Master budget see Budget.

Matrix organization See Organization structure.

MBO Management by objectives; technique to tie in individual managerial performance with overall corporate objectives, by identifying key results for each manager, derived, ultimately from strategic plans. Based on outcomes rather than processes.

Me Too is a product modeled consciously on a successful competitor: the type of product that appears on a market with no differentiating features from already-existing products.

Measurability The degree to which the size and purchasing power of a market segment can be measured. (Philip Kotler)

Media Nonpersonal communications channels including print media (newspapers, magazines, direct mail), broadcast media (radio, television), and display media (billboards, signs, posters). (Philip Kotler)

Basic media characteristics:
1. Television. Advantages: (i) Ability to build high awareness levels, (ii) Large audiences, (iii) Demonstration of product in use (sound and vision), (iv) Compulsiveness, (v) Viewed at home in a relaxed manner; Disadvantages: (i) Commercial breaks may be seen as irritating, (ii) Transient medium.
2. Magazines. Advantages: (i) Opportunity of color reproduction, (ii) Suitable editorial environment, (iii) National Readership Survey date allows careful targeting, (iv) Advertisements are expected by readers, (v) Long life spans, (vi) Read at leisure, (vii) High readership, compared with circulation; Disadvantages: (i) May have 'desert' areas which are seldom noted by readers.
3. National press. Advantages: (i) Great coverage volume; (ii) Great flexibility in terms of timing - booked at short notice, (iii) Illustrations can be used; Disadvantages: (i) Less targeted method of reaching the target audience, (ii) May be difficult to get people to notice the advertising content.
4. Posters. Advantages: (i) Opportunity of color reproduction, (ii) Opportunity to communicate a brief message, (iii) Can be used at point of sale or point of consumption).
5. Cinema. Advantages: (i) Feasible point of sale, (ii) Young audience, (iii) High production cost can be reduced by adaptation of TV creative), (iv) Segmentation possibilities; Disadvantage - Small size of the audiences.
6. Radio. Advantages: (i) May be perceived as an 'intimate companion', (ii) Use sound, (iii) Segmentation possibilities; Disadvantages: (i) Lack of visual demonstration, (ii) Transient medium, (iii) Small audience size.
7. Outdoor and transportation advertising. Advantages: (i) Ability to build high awareness levels, (ii) Many people have an opportunities to see, (iii) Relatively low costs, (iv) Short- and long-term possibilities, (v) National campaigns are possible, (vi) Segmentation possibilities; Disadvantages: (i) May be subject to effect of the weather, (ii) Sites are subject to environmental criticism.
8. Satellite broadcasting. Advantages: (i) Ability to reach segments at different times of day/night, (ii) Tactical segmentation, (iii) Ease and speed access to medium, (iv) Upmarket audience (high achievers, top income earners, early adopters/innovators), (v) Control of message (adaptation/standardization), (vi) Cost Global/Region specific, Disadvantages: (i) Measurement, (ii) In some cases - no control of medium (channel flicking).

Media criteria: 1) Costs, 2) Ability to communicate, 3) The message effectively, 4) Frequency, 5) Target market, 6) Flexibility (lead times), 7) Temporal constraints, 8) National / Regional, 9) Volume of business, 10) Past results, 11) Reputation,

Factors determining media selection decisions: 1. The nature of the medium, 2. The positioning of adverts, 3. The way in which people use the medium, 4. Audience size (coverage and frequency): 4.1 actual numbers, 4.2 geographic spread etc.; 5. Audience type: 5.1 age, 5.2 social class, 5.3 interests; 6. Budget: 5.1 production and 5.2 media costs; 7. Message objective: 7.1 demonstration, 7.2 technical detail, 7.3 urgency, 7.4 comparability; 8. Creative scope of medium: 8.1 potential of color advertising, 8.2 potential of sound and movement), 8.3 space and time limitations, 8.4 reprographic standards, 8.5 easy of booking; 9. Restrictions (e.g. cigarettes, feminine hygiene products), 11. Medium costs, 12. Competitive activity, 13. Control factors of quality.

See below Media costs, Media independents, Media opportunities, Media schedule and Media-buying service.

See also Consumer media characteristics.

Media impact The qualitative value of an exposure through a given medium. (Philip Kotler)

Media costs The price of advertising through various channels of communication, such as print, electronic, out-of-home (e.g. billboards) and direct mail. (Responsive Database Services, Inc)

Media independents These are companies who specialize in media scheduling and buying. Categories of media independents: 1) Specialist, 2) Agency owned, 3) Media buying clubs.

Media opportunities
1. Changing in printed media (technology, low investment barrier to entry) > Wide variety of new magazines, journals and newsletters > segmenting of the print market > more accurately targeted media > effective target advertisers' messages.

2. Advent of cable and satellite television > different channels (up to 40 from a number of countries) attract different audience profiles (MTV - young audience, UK Gold - older audience, Nickelodeon - children audience, Sky Sports - maledominated audience)

3. Internet links up millions of computers worldwide via telecommunications > enormous potential for interactive communications with customers.

Media plan A plan that outlines the objectives of an advertising campaign, the target audience, and the specific media vehicles that will be used to reach that audience. (Courtland L. Bovee, John V. Thill)

Media schedule is the formal listing of which adverts are to appear where.

Media-buying service A company other than an ad agency that purchases media time and space. Often referred to as unbundling, since the creative function is separate from the media portion. (Responsive Database Services, Inc)

Meetings. Main checkpoints for meeting: 1) Content, 2) Timing, 3) Purpose.

Reasons of failed meetings (Malcolm Peel): 1) Unnecessary attendance, 2) Lack of preparation, 3) Bad Tactics, 4) Personality problems, 5) Procedural problems.

Reason of ineffective meetings: 1) Inappropriate location/timing of a meeting; 2) Unclear objectives; 3) Interruptions; 4) Ineffective chairperson.

Encouraging effective meetings: 1) Select attendees carefully and give them sufficient notice; 2) Draw up an agenda and circulate this prior to the meetings; 3) If an issue requires further investigation - terminate the meetings and re-schedule it; 4) Chairperson - to summarize key points and decisions; 5) If relevant, a further meeting should be scheduled.

Key elements of efficient and productive meetings: 1) Purpose known and shared by all, 2) Agenda set and followed, 3) Timetable set and agreed, 4) Notes and minutes recorded, 5) Impute and involvement, 6) Outcomes discussed and decided, 7) Action points summarized.

Memorandum is a means of recording and retaining information which is worthy of note. The heading cites the intended recipient, sender, others who have received copies, what it refers to and the date.

Memo structure:
A Memorandum.

B Formal points 1 (To, From, Subject, Date, Ref): "From: I Afanasieff, Marketing Specialist".

C Subject heading (general theme): "Subject: Staff meeting, January 1998".

D Opening paragraph or sentence (reason, context): "I would like to remind you that & ", "Further to our telephone conversation I would like to & " "The Managing Director intends to hold an informal general meeting with administrative staff at Wednesday 23rd in Meeting Room 3 at 6.00 PM, to discuss any matters that may be of concern."

E Substance of message: "I outline below a number of courses of action which could be taken to prevent."

F Closing paragraph or sentence (what is required) - Please let me know as soon as possible (no later than Wednesday 16th).

G Formal points 2 (Copies to, Signed). 

Merchandise assortment The unique mix of products offered by one retailer that is not available from any other retailer. (Courtland L. Bovee, John V. Thill)

Merchandising
Definition #1. The process of planning the merchandise assortment for a retail store, making sure the right products are available for target customers; also refers to the presentation of products in the retail environment. (Courtland L. Bovee, John V. Thill)
Definition #2. The entire process of distributing ... merchandise, including replenishment ordering, stock control, warehousing, transport and in store display.

Merchandising techniques: 1) Leaflets, 2) Window displays, 3) Dump bins, 4) Free standing floor displays, and 5) lighting.

Merchandising conglomerates Corporations that combine several different retailing forms under central ownership and that share some distribution and management functions. (Philip Kotler)

Merchant wholesaler An independently owned business that takes title to the merchandise it handles. (Philip Kotler)

Merger is the amalgamation of two or more entities.

Merit good is a good which is considered to be desirable in itself. A government may supply merit goods such as health and education, which free markets alone may provide in insufficient quantities for the public good.

Message rehearsal see  Communication theory.

Micro models Models that focus on a single element in a situation.

Microeconomics is the study of the behavior of individual economic units, particularly consumers and firms.

See also Environment.

Microenvironment The forces close to the company that affect its ability to serve its customers: (i) the company, (ii) market channel firms, (iii) customer markets, (iv) competitors, and (v) publics. (Philip Kotler)

Micromarketing A form of target marketing in which companies tailor their marketing programs to the needs and wants of narrowly defined geographic, demographic, psychographic, or benefit segments. (Philip Kotler)

Middlemen Distribution channel firms that help the company find customers or make sales to them. (Philip Kotler)

Minimum pricing Price charged that just covers both the incremental costs of producing and selling an item and the opportunity costs of the resources consumed in making and selling it.

Misrepresentation False statement made with the object of inducing the other party to enter into a contract.

Mission is an organization's rationale for existing at all and/or its long term strategic direction and/or its values; basic function in society in terms of the products and services an organization produces for its clients.

Mission statementA statement of the organization's purpose, what it wants to accomplish in the larger environment. (Philip Kotler)

Missionary salespeople Salespeople who disseminate information about new products to existing customers and who motivate them to resell to their customers. (Courtland L. Bovee, John V. Thill)

Mixed economy is an economy in which both public and private enterprise engage in economic activity. All contemporary economic systems are mixed to some extent.

MMC is the Monopolies and Mergers Commission set up in 1948 to investigate monopolies and report to the Secretary of State.

Model is a simplified description of a system etc. to assist calculations and predictions. (Oxford English Dictionary) In marketing models assist in the development of theories of consumer behavior and aid the marketer's understanding of the complex relationships involved.

Different types of model: 1) Micro or Macro, 2) Data-based or Theory Based, 3) Descriptive or Predictive, 4) Behavioral or Statistical, 5) Qualitative or Quantitative, 6) Static or Dynamic.

Main advantages of models: 1) Simplify complex processes, 2) Help us to understand to understand these processes, 3) Unable us to predict actions and reactions, 4) Help us to monitor processes using the model, 5) Enable us to analyze processes and communicate our findings.

Main disadvantages of models: 1) Oversimplify complex processes, 2) May seem to be too theoretical, 3) Are not widely known, 4) Only relate to a limited number of factors controllable.

Main models:
A. Howard-Sheth model: 1) Precipitation, Persuasion, Reinforcement and Reminder.

B. Maslow's theory of motivations model: 1) Physiological needs: foods, water, air, shelter, sex. [also houses and clothes] 2) Safety and security needs: freedom from threat, health, but also security, order, predictability. [insurance, job training] 3) Social or companionship needs: for friendships, affection, sense of belonging. [cosmetics, pets] 4) Esteem or ego needs: for self-respect and self-confidence, competence, achievement, independence, prestige and their reflection in the perception of others. [luxury items, cars] 5) Self-actualization needs: for the fulfillment of personal potential. [education and training services, health-club membership and career constancy]

Practice (Salesforce motivation): Tasking Maslow Hierarchy on Needs, from physiological needs to self-actualization needs, there are a number of negative factors for each category of needs that are specific for salesforce and there are various ways in which they can be overcome, as shown bellow:
Need / Negative factor / Method of improvement
Self-actualization / / Sales contest
Self-esteem / 'Commercial traveler' image / Good car and hotels
Self-esteem / Frequent refusals by customers / Bonuses etc.
Affiliation / Geographical spread / Meeting and conferences
Affiliation / Individual working / Sales managers visits, Training
Safety / Job security / Training, Remunerations
Physiological / Travelling away from home / Good hotels.

C. Herzberg's theory of motivations model: 1) Hygiene factors cause dissatisfaction but which cannot motivate once satisfied. 2) Motivator factors are intrinsically motivating.
Practice (Salesforce motivation):
Hygiene factors / Salesforce application
Company policy and administration / Clear guidelines regarding expenses
Supervision / Area Manager field visits
Salary/ Appropriate remuneration package (fixed salary or combination of fixed salary and bonus)
Motivators / Salesforce application
Achievement / Contests, Targets, Commission
Recognition / News bulletins, Contests, Commission
Work itself / Belief in the product, Independence, Variety
Responsibility / Early promotion, Mentoring of junior salespeople

D. Expectancy theory model Force or strength of motivation to do something is a product of the value that someone puts on a particular result (valence), and the strength of the expectation that the result will be achieved. Expectancy x Valence = Force of motivations.

E. Hierarchy of effect model behavioral dimensions:
1. Cognitive (Motives). Movement toward purchase: Purchase and Conviction. Promotion: 1.1.1 Point of purchase, 1.1.2 Price appeals, 1.1.3 Special offers;
2. Affective (Emotions). Movement toward purchase: 2.1 Preference. Promotion: 2.1.1 Competitive advertising, 2.1.2 Argumentative copy, 2.1.3 Stressing of benefits; 2.2 Linking: Promotion: 2.2.1 Image copy, 2.2.2 Status appeal;
3. Cognitive (Thoughts). Movement toward purchase: 3.1 Knowledge. Promotion: 3.1.1 Announcement, 3.1.2 Jingles; 3.2 Awareness. Promotion: Teaser campaigns.

H. Market planning models: (i) Product life cycle; (ii) Ansoff matrix; (iii) Boston classification; (iv) Porter's competitive forces; (v) Porter's generic strategies.

I. Response hierarchy models (Behavioral models) Models of consumer behavior that attempt to predict the sequence of mental stages that the consumer passes through on the way to a purchase.

1) AIDA is an acronym denoting elements of a marketing communications strategy (to generate awareness, arouse interest, stir up desire and trigger action). Effectiveness of different promotion tools: a) Awareness - Television and press advertising, b) Interest - Public relation, Newspaper features, Literature; c) Desire - Sales promotion, Personalized quotations, d) Action - Personal selling, Valuable gifts, Independent financial advisers. Practice: AIDA can be used to set promotional objectives and to measure advertising effectiveness. This model most appropriate for launching new product. Disadvantages: This model is too simplistic and ignores impulse purchasing or the fact that all four stages may happen simultaneously. It also ignores the competitive element involved in choosing between products.

2) Adoption (Kotler): Awareness, Interest, Evaluation, Trial and Adoption.

3) DAGMAR (Defining Advertising Goals for Measuring Advertising Responses). With this model the mental stages range from unawareness, awareness, comprehension, conviction and finally action. Practice: This model provides distinct steps, which illustrate the process of purchasing in the form of decision. This allows for creation of measurable objectives for each stage of communication continuum. Disadvantage: This model is most appropriate when considering complex decision-making.

4) Lavidge & Steiner: Awareness, Knowledge, Linking, Preference, Conviction and Purchase. Practice: This model proposes that advertising can move consumer closer to buying a product step by step. Disadvantage: this model finishes with the purchase and does not take into account post-purchase evaluation.

Effective consumer behavior model must be: 1) realistic, 2) factual, 3) valid, 4) predictive, 5) simple, 6) logical, 7) explanatory, 8) heuristic; and it should allow comparison of actual outputs with predicted outputs.

Threshold models Buyer behavior models based on the idea that consumers have cut-off points or thresholds beyond which they will not venture.

Trade-off models Buyer behavior models that put forward the viewpoint that because buyers have such a wide array of choices no one product will be the best on all product attributes, therefore the buyer will undertake some kind of trade-off, accepting a product which is lacking in one attribute but is strong in another.

Black box models
Definition #1. Black box models are models of consumer behavior in which the mind of the consumer is likened to a 'black box' which cannot be penetrated to find out what is inside. Such models focus on the input or stimulus (for example, advertising) and the response or output (purchase behavior).
Definition #2. Black box models leave the complexities of mind such as perception, motivation and attitudes locked up in a 'black box' and focus on inputs stimuli such as advertising and output which takes the form of consumer behavior or response.

Also see Motivation models and Marketing communications models.

Monetarism is a school of thought in economics which takes the view that instability in the economy is largely caused by factors within the monetary sector.

Monetary policy is the regulation of the economy through control of the monetary system by operating on such variables as the money supply, the level of interest rates and the conditions for availability of credit.

Money Something which is generally acceptable in settling debts, or in exchanging for goods.

Money supply is the amount or stock of money in an economy.

Monopolistic competition is a market structure in which a large number of competing suppliers each sell a differentiated product.

Monopoly is a market with only one supplier of a product.

Moral appeals Message appeals that are directed to the audience's sense of what is right and proper. (Philip Kotler)

Mores Significant social norms including moral imperatives and taboos. Monogamy (one spouse) and taboos against incest, murder and theft are pan of the social mores of many nations.

Motivation
Definition #1. Motivation is the sum total of the influences which make us do something.
Definition #2. Motivation is an inner state that energizes, activates, or moves, that directs or channels behavior towards goals.

Motivation theories: 1) Satisfaction theories are based on the assumption that a 'satisfied' worker will work harder, 2) Incentive theories are based on the assumption that individuals will work harder in order to obtain a desired reward, 3) Intrinsic theories - people will work hard in response to factors in the work itself - participation, responsibility, etc., 4) Content theories assume that human beings have a "package" of motives which they pursue, 5) Process theories explore the process through which outcomes become desirable and pursued by individuals.

Motivator factors: 1) Status, 2) Advancement, 3) Gaining recognition, 4) Being given responsibility, 5) Challenging, 6) Achievement, and 7) Growth in the job.

Methods of improving motivation and job satisfaction: 1. Job design: 1.1 Content, methods and relationship, 1.2 Job enrichment; 1.3 Job enlargement, 1.4 Job rotation; 2. Participation and Empowerment, 3. Pay and incentive schemes.

I. Drucker model. Employee satisfaction comes about through encouraging, by 'pushing' employees to accept responsibility: 1) Careful placement of people in job, 2) High standards of performance in the job, 3) Providing the worker with the information needed to control personal performance, 4) Opportunities for participation in decisions that will give the employee managerial vision.

II. Howard-Sheth model: 1) Precipitation, Persuasion, Reinforcement, and Reminder.

III. Maslow's theory of motivations model: 1) Physiological needs: foods, water, air, shelter, sex. [also houses and clothes] 2) Safety and security needs: freedom from threat, health, but also security, order, predictability. [insurance, job training] 3) Social or companionship needs: for friendships, affection, sense of belonging. [cosmetics, pets] 4) Esteem or ego needs: for self-respect and self-confidence, competence, achievement, independence, prestige and their reflection in the perception of others. [luxury items, cars] 5) Self-actualization needs: for the fulfillment of personal potential. [education and training services, health-club membership and career constancy]

Practice (Salesforce motivation): Tasking Maslow Hierarchy on Needs, from physiological needs to self-actualization needs, there are a number of negative factors for each category of needs that are specific for salesforce and there are various ways in which they can be overcome, as shown bellow:
Need / Negative factor / Method of improvement
Self-actualization / / Sales contest
Self-esteem / 'Commercial traveler' image / Good car and hotels
Self-esteem / Frequent refusals by customers / Bonuses etc.
Affiliation / Geographical spread / Meeting and conferences
Affiliation / Individual working / Sales managers visits, Training
Safety / Job security / Training, Remunerations
Physiological / Travelling away from home / Good hotels.

IV. Herzberg's theory of motivations model: 1) Hygiene factors cause dissatisfaction but which cannot motivate once satisfied. 2) Motivator factors are intrinsically motivating.
Practice (Salesforce motivation):
1. Hygiene factors / 2. Salesforce application
1.1 Company policy and administration / 2.1 Clear guidelines regarding expenses
1.2 Supervision / 2.2 Area Manager field visits
1.3 Salary / 2.3 Appropriate remuneration package (fixed salary or combination of fixed salary and bonus)
4. Motivators / 5. Salesforce application
4.1 Achievement / 5.1 Contests, Targets, Commission
4.2 Recognition / 5.2 News bulletins, Contests, Commission
4.3 Work itself / 5.3 Belief in the product, Independence, Variety
4.4 Responsibility / 5.4 Early promotion, Mentoring of junior salespeople

V. Expectancy theory model Force or strength of motivation to do something is a product of the value that someone puts on a particular result (valence), and the strength of the expectation that the result will be achieved. Expectancy x Valence = Force of motivations.

VI. Models of 'man'. (Shein): 1) Rational-economic man, 2) Social man, 3) Self-actualizing man, 4) Complex man.

Motivation research See Projective techniques

Motive (or drive) A need that is sufficiently pressing to direct the person to seek satisfaction of the need. (Philip Kotler)

Motives Internal factors that activate and direct behavior toward some goal. (Courtland L. Bovee, John V. Thill)

Movie theater Advertising shown on a movie screen prior to the movie. Term also applies to ads on video tapes. (Responsive Database Services, Inc)

Moving averages
Definition #1. A forecasting method that averages inside a moving window of fixed duration; for instance, a three-month moving average averages three months of data at a time and then adds the newest month and discards the oldest month to compute the next data point (Courtland L. Bovee, John V. Thill)
Definition #2. A technique involving the calculation of consecutive averages over time to establish the trend of a time series.

Multimedia: 1) Internet, 2) Home shopping, 3) Satellite and cable TV, 4) Direct marketing.

Multimedia technology integrates text, sound, animation, music and moving images with a computer providing the user with a variety of communication possibilities for business applications.

Multinational company Company with operations/facilities in more than one country: i.e. they are more than just exporters. Most multinationals have a close involvement with the home country.

Multinational enterprise is an enterprise owning or controlling production facilities or service facilities in more than one country.

Multinationals are enterprises engaged in simultaneous manufacture/operations in a number of countries and which take decisions from a global perspective.

Reasons for increasing multinational activity: 1) Rapid improvements in transport and business communication system allow the central control of global operations, 2) Efficient international capital market provide the finance, 3) Avoidance of transport costs, 4) Advantage taken of lower operational costs for re-export back to the home market, 5) Tariff barriers avoided and advantage taken of various location incentives on offer, 6) More effective access to and knowledge of the local market, 7) Developing countries in Africa, Asia and Latin America offer market growth, 8) Avoidance of restrictions and resistance to technical change and working methods.

Consequences of multinationals: 1. To home country: 1.1 Loss of investment to host, 1.2 Loss of low-skilled jobs, 1.3 Visible exports fall, 1.4 Visible re-imports rise, 1.5 Invisible earning rise. 2. To host country: 2.1 Gains investment/jobs, 2.2 Balance of payment gains, 2.3 Transfer of skill/technology, 2.4 Coast of incentives necessary, 2.5 Risk of dependence.

Multiple regression is a technique used to calculate the explanatory value of a number of independent variables affecting a dependent one.

Multiple scenarios see Scenarios.

Multiplier is the ratio of the change in income to the change in expenditure which caused it.

Multiples Retail organizations comprising ten or more outlets, selling the same merchandise in an identical trading format.

Multiple-zone pricing A modification of single-zone pricing that uses more than one zone and calculates an average shipping charge for each zone. (Courtland L. Bovee, John V. Thill)

Multistage see Sampling.