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Marketing dictionary - Ee
- Early Adopters
- the group in a market second only to innovators in
the speed with which they adopt a new product. See Diffusion of Innovation;
Early Majority; Innovators; Laggards; Late Majority.
- Early Majority
- the group in a market who are more deliberate than
the innovators and the early adopters in making purchase decisions, but
less conservative than the late majority and laggards. See Diffusion of
Innovation; Early Adopters; Innovators; Laggards; Late Majority.
- Economic Environment
- factors in the economy, such as inflation, unemployment,
interest rates, etc., that influence the buying decisions of consumers
and organisations.
- Economic Forecast
- a prediction of the likely impact on the business
environment of factors such as inflation, interest rates, unemployment,
government and consumer spending, etc.
- Economic Order Quantity
- the optimum quantity of each product that
must be ordered to balance the inventory holding costs against the order
processing costs; holding costs increase with more inventory, while order
processing costs decrease.
- Economic Utility
- the ability of a good or service to satisfy a customer's
needs or wants; the five kinds of economic utility are form utility, time
utility, place utility, information utility and possession utility.
- Economies of Scale
- reductions in the price per unit of marketing or
manufacturing a product as the quantity marketed or produced increases.
- EEC
- abbrev. European Economic Community.
- Effective Buying Income
- an individual's disposable income, consisting
of salary and wages, dividends, interest, profits, etc., less all government
taxes. See Disposable Income.
- EFTPOS
- abbrev. Electronic Funds Transfer at Point of Sale.
- Ego States
- a proposition in transactional analysis that every person
has three mental conditions - parent ego state, child ego state and adult
ego state, and that at any particular time one of these states is dominant
in the personality.
- Ego-Drive
- the need of one individual to persuade another to a particular
point of view and feel satisfaction in having done so.
- Eighty-Twenty Principle
- see Pareto's Principle.
- Elaboration Probes
- questions posed by salespeople when positively
encouraging prospects to provide additional information about their needs.
- Elasticity of Demand
- a measure of the degree to which any change in
the price of a product will affect the demand for it. See Inelasticity
of Demand.
- Electronic Funds Transfer at Point of Sale
- a system commonly used
in retailing in which a consumer pays for purchases by means of an electronic
transfer of funds from his or her bank account to that of the store.
- Electronic Retailing
- the use by customers of computer terminals in
conveniently located shopping kiosks to call up product information and
then to place orders using credit cards.
- Electronic Shelf-Talkers
- see Shelf-Talkers
- Embargo
- a total restriction on a particular good leaving or entering
a county; any restriction imposed in the release of information, advertising,
etc before a given date.
- Embedding
- a form of subliminal advertising; the concealing of imagery
in various products and advertisements to appeal to the subconscious drives
of potential customers. See Subliminal Advertising.
- Emergency Goods
- a category of consumer goods consisting of items purchased
quickly in necessity. See Consumer Goods; Convenience Goods.
- Emotional Appeals in Advertising
- advertising messages, usually based
on imagery rather than information, which attempt to achieve the advertiser's
objectives by evoking strong emotionsl feelings (fear, anger, passion,
etc) rather than by a rational appeal. See Rational Appeals in Advertising.
- Emotional Close
- a closing technique in which the salesperson attempts
to get a favourable response from a buyer by appealing to his or her fear,
pride or similar emotion. See Close.
- Emotional Risk
- the concern or uncertainty felt by a prospective buyer
that he or she will feel bad about the purchase afterwards; also called
Psychological Risk. See Risk.
- Empathy
- the ability of an individual to project his or her own personality
into a situation and understand it; a quality deemed desirable in salespeople
who must be able to see the product from the buyer's point of view.
- Employee Poaching
- the act of enticing key employees from one competing
firm to another.
- Employee Publics
- the part of a company's public consisting of its
employees. See Publics.
- Empty Nesters
- those in the stage of the family life cycle where the
children have all grown up and left home; typically, empty nesters are
at the peak of their earning potential, and are an excellent market for
travel, leisure and sporting goods, and home improvement merchandise. See
Family Life Cycle.
- Encirclement Attack
- a competitive strategy used by a strong challenger
to attack the market leader; the market challenger launches an attack on
several fronts at once in an attempt to break the leader's grip on the
market.
- Encoding
- the translation of a message into code by a sender so that
it can be relayed through a medium to a receiver. See Communication Process;
Decoding.
- Encouragement Probes
- question posed by salespeople to get additional
information from a prospective buyer.
- Endless Chain Method
- a prospecting method in which a salesperson asks
each customer called upon to suggest the names of other likely purchasers
of the same product. See Prospecting.
- Endorsements
- recommendations to purchase a particular brand of product
made in advertisements by well-known personalities or experts.
- ENP
- abbrev. Expected Net Profit.
- Enterprise Competitors
- firms of similar type vying for a consumer's
business. See Competitors.
- Entertainment Marketing
- promotion of a product by means of movie tie-ins,
endorsement by entertainment industry celebrities, or similar. See Movie
Tie-ins; Endorsement.
- Entry Barrier
- see Market Entry Barrier.
- Envelopes and Stubby Pencil
- a rough method of calculating the size
of the market for a given product, based on the known size of an overseas
market.
- Environmental Assessment -
- Environmental Forecasting
- attempting to predict the nature and intensity
of the microenvironmental and macroenvironmental forces that are likely
to affect a firm's decision making and have an impact upon its performance
in a given period.
- Environmental Management
- see Megamarketing.
- Environmental Scanning
- the process of examining the internal and external
factors which influence the firm's operations and decision making in order
to identify market opportunities and threats.
- EOQ
- abbrev. Economic Order Quantity.
- Equipment-Based Services
- Services in which machinery or equipment
plays a significant role in delivering; for example, automatic telling
machines play a significant role in the delivery of banking services. See
People-Based Services.
- Error Rate
- the percentage of errors (wrong items, wrong quantity,
wrong address, etc.) made in shipping merchandise to customers.
- Escalator Clause
- a clause in a contract which allows a tenderer to
adjust the final amount charged to take account of price rises in component
parts between acceptance of the bid and completion of the delivery, installation,
etc.
- ESP
- see Envelopes and Stubby Pencil.
- Esteem Needs
- the desire to feel important in the eyes of others. See
Maslow's Hierarchy of Needs.
- Ethics
- see Marketing Ethics.
- European Economic Community
- a group of European nations acting as
a trading block, limiting trade barriers among members and applying common
tariffs to products from non-members.
- Evaluative Criteria
- features of a supplier, product, etc. considered
by a buyer when choosing between alternatives; evaluative criteria may
be objective or subjective.
- Evaluative Probes
- questions posed by salespeople to help their understanding
of a prospective customer's feelings on a subject.
- Evoked Set
- brands that a buyer is aware of, and thinks well of, when
considering a purchase ; also called the Consideration Set. See Inept Set;
Inert Set.
- Exchange
- the transfer of an object, idea, service, etc. from one person
or organisation to another in return for something desired. See Centralised
Exchange Processes; Decentralised Exchange Processes.
- Exclusive Agreements
- agreements between manufacturers and middlemen
in which the latter are granted sole rights to distribute a product within
a defined territory.
- Exclusive Assortment
- an assortment strategy in which a reseller decides
to carry the product line of only one manufacturer. See Assortment Strategies;
Broad Assortment; Deep Assortment; Scrambled Assortment.
- Exclusive Dealing Agreement
- an arrangement in which a manufacturer
prohibits a marketing intermediary from carrying competitors' products.
- Exclusive Distribution
- restricting the availability of a product to
one particular outlet. See Distribution Intensity; Intensive Distribution;
Selective Distribution.
- Exclusive Sales Territory
- a region in which a distributor has been
given sole rights to a manufacturer's product.
- Exclusivity
- see Exclusive Agreements; Exclusive Distribution.
- Expectancy-Value Model (of Brand Evaluation)
- a model used in the study
of consumer decision processes to evaluate alternative brands. In this
model, brand attributes are weighted; a consumer's beliefs about each brand's
attributes are multiplied by the respective weights to produce a preference
ranking of the alternatives. Other models of brand evaluation include the
ideal brand model, the conjunctive model, the disjunctive model, the lexicographic
model and the determinance model.
- Expected Return Model
- a forecasting technique used to predict future
profits where firms bid for business in an uncertain situation; a method
of determining the expected value of a set of alternative outcomes. Total
expected return in a given period is the sum of the profit from each job
bid for, after each profit has been reduced by a factor corresponding to
the degree of probability of the bid being accepted. Also called the Expected
Value Method and Expected Value Analysis.
- Expected Value Analysis
- see Expected Return Model.
- Expected Value Method
- see Expected Return Model.
- Expense Account
- a budgeted amount of money advanced to a salesperson
for food, travel, accommodation, entertainment of clients, and other items
of expenditure considered necessary to make sales.
- Expense Quota
- the amount budgeted for a salesperson for expenses associated
with making sales in a territory; used as a cost control measure by sales
managers.
- Experience Curve
- see Learning Curve.
- Experience Curve Pricing
- the pricing of a product at a lower than
average-cost level on the basis that costs will decrease as production
experience increases.
- Experimental Research Method
- a systematic and scientific approach
to marketing research in which the research manipulates one or a number
of variables and measures any change in other variables.
- Experimental Variables
- the variables a researcher manipulates in conducting
an experiment; also called Explanatory Variables. See Dependent Variables.
- Expert Forecasting Survey
- a sales forecasting method in which outside
specialists or industry experts - economists, academics, management consultants,
advertising executives, etc. - are asked to assist in the preparation of
the sales forecast.
- Explanatory Variables
- see Experimental Variables.
- Exploratory Research
- desk research undertaken before primary research
is commenced in a marketing research study, including an informal search
for material from internal, external and secondary sources, interviews
and discussions with informed sources, etc. See Marketing Research; Primary
Research; Secondary Research.
- Exponential Smoothing
- a quantitative technique for sales forecasting
using historical data weighted to favour the most recent information.
- Export-Import Agent
- an independent marketing intermediary bringing
together buyers and sellers from different countries and taking a commission
on sales.
- Express Warranty
- a manufacturer's guarantee, stated in written or
spoken words, that the product offered for sale will satisfactorily perform
the task for which it is intended, and to the buyer's reasonable expectations.
See Warranty; Implied Warranty; Promotional Warranty; Protective Warranty.
- Expressive (Social Style)
- one of four social styles (with Amiable,
Analytical and Expressive) commonly used to classify salespeople and their
customers; Expressives are characterised by high assertiveness and high
responsiveness.
- Extension Approach to Pricing
- an approach to global pricing in which
a firm sets the same price for its product around the world and expects
purchases to pay whatever additional freight and import costs apply. See
Adaptation Approach to Pricing; Geocentric Approach to Pricing.
- Extensive Decision Making
- see Extensive Problem Solving.
- Extensive Problem Solving
- buying situations which require considerable
effort because the buyer has had no previous experience with the product
or suppliers; also called Extensive Decision Making. See Limited Problem
Solving; Routine Problem Solving.
- External Marketing Environment
- relatively uncontrollable factors outside
the firm which influence its decision making. See Internal Environment.
- External Stimuli
- advertisements, posters, coupons, point-of-purchase
materials, store displays, etc which give rise to a drive. See Learning
Process; Drive.
- Extrinsic Rewards
- rewards for doing a job which are external to the
individual, such as wages, bonuses, incentives, fringe benefits, job promotions,
and so on. See Intrinsic Rewards.
- Eye Pupil Dilation Test
- a physiological method of objectively
pre-testing advertisements in which involuntary eye pupil dilation is used
to measure the level of interest shown by a particular consumer.
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