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DEFINITION OF MARKETING M - N

M
Manufacturer’s agent
An agent who typically operates on an extended contractual basis, often sells in an exclusive territory, offers non-competing but related lines of goods, and has defined authority regarding prices and terms of sale.
Market
Prospective buyers, individuals or organizations, willing and able to purchase the organization’s potential offering.
Market development funds
The monetary resources a company invests to assist hannel members increase volume sales of their products or services. Referred to by the acronym MDF.
Market-development strategy
A product-market strategy whereby an organization introduces its offerings to markets other than those it is currently serving. In international marketing, this strategy can be implemented through exportation licensing, joint ventures, or direct investment.
Market evolution
Incremental changes in primary demand for a product class and changes in technology.
Market-penetration strategy
A product market strategy whereby an organization seeks to gain greater dominance in a market in which it already has an offering. This strategy often focuses on capturing a larger share of an existing market.
Market redefinition
Changes in the offering demanded by buyers or promoted by competitors to enhance its perception and associated sales.
Market sales potential
The maximum level of sales that might be available to all organizations serving a defined market in a specific time period.
Market segmentation
The categorization of potential buyers into groups ased on common characteristics such as age, gender, income, and geography or other attributes relating to purchase or consumption behavior.
Market share
The total sales of an organization divided by the sales of the market they serve.
Marketing
The set of planned activities designed to positively influence the perceptions and purchase choices of ndividuals and organizations.
Marketing audit
A comprehensive and systematic examination of a company’s or business unit’s marketing environment, objectives, strategies, and activities, with a view of identifying and understanding problem areas and opportunities, and recommending a plan of action to improve the company’s marketing performance.
Marketing-cost analysis
Assigning or allocating costs to a specific marketing ctivity or entity in a manner that accurately captures the financial contribution of activities or entities to the organization.
Marketing mix
The controllable activities that include the product, service, or idea offered, the manner in which the offering will be communicated to customers, the method for distributing the offering, the price to be charged for the offering, and the services provided before and after the sale.
Marketing plan
A written document containing description and guidelines for an organization’s or a product’s marketing strategies, tactics, and programs for offering their products and services over the defined planning period, often one year.
Mission statement
A statement that captures an organization’s purpose, customer orientation and business philosophy.
Multiple-channel system
A channel of distribution that uses a combination of direct and indirect channels where the channel members serve different segments.

N
New-brand strategy
The development of a new brand and often a new offering for a product class that has not been previously served by the organizations.
Net profit margin before taxes
The remainder after cost of goods sold, other variable costs revenue, or simply, total revenue minus total cost. Net profit margin can be expressed in actual monetary values or percentage terms.

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