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DEFINITION OF MARKETING F - L

F
Fighting brand strategy
Adding a new brand to confront competitive brands inan established product category.
Fixed cost
Static expenses that do not fluctuate with output volume and become progressively smaller per unit of output as volume increases.
Focus group
Groups of people representing target audiences, usually between 9 and 12 in number, brought together to discuss a topic that will offer insight for product development, service, or marketing efforts.
Full-cost price strategies
A process that considers both variable and fixed costs (total costs) in determining the price point of a product or service.
Frequency marketing
Activities which encourage repeat purchasing through a formal program enrollment process to develop loyaltyand commitment. Frequency marketing is also referred to as loyalty programs.

G
Gross margin
The difference between total sales revenue and total cost of goods sold, or, on a per unit basis, the difference between unit selling price and unit cost of goods sold. Gross margin can be expressed in dollar or percentage terms.
H
Harvesting Selling
a business or product line.
I
Idea adoption
The process of accepting a new concept to address a need or solve a problem and is often discussed in the context of the rate or speed of that acceptance.
Innovators
A type of adopter in Everett Rogers’ diffusion of innovations framework describing the first group to purchase a new product or service.
Integrated marketing communications
The practice of blending different elements of the communication mix in mutually reinforcing ways.
Intensive distribution
A distribution strategy whereby a producer attempts to sell its products or services in as many retail outlets as possible within a geographical area without exclusivity.
J
Jobber
An intermediary that buys from producers to sell to retailers and offers various services with that function.
L
Laggards
A type of adopter in Everett Rogers’ diffusion of innovations framework describing the risk adverse group that follows the late majority, generally not interested in new technology and are the last group of customers to make a purchase decision.
Life cycle
A model depicting the sales volume cycle of a single product, brand, service or a class of products or services over time described in terms of the four phases of introduction, growth, maturity and decline
Loyalty programs
Activities designed to encourage repeat purchasing through a formal program enrollment process and the distribution of benefits. Loyalty programs may also be referred to as frequency marketing.

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