Page 240 - Marketing the Basics 2nd

232 glossary
Territorial sales force A sales force structure where each sales- person is assigned an exclusive geographical territory to sell the company’s entire product-line.
Text message marketing (SMS marketing) A direct marketing strategy entailing sending a text message to a customer’s cellular telephone.
Timing Releasing an advertisement at a time that minimizes the risk of confusing the audience.
Total cost The sum of all variable and fixed costs.
Trademark A legally registered monopoly over the rights to a
name.
Transfer pricing The price a company charges to foreign subsidiaries for a product.
Two-way stretch A product strategy whereby the vendor simulta- neously moves into a higher margin, low-volume market and a higher volume, low-margin market.
Unique selling proposition Differentiating a product based on benefit.
Upstream stretch A product strategy whereby the vendor moves into a higher margin but lower volume market.
Utility The level of satisfaction a consumer receives from making a choice.
Value-added resellers (VAR) A company that modifies an existing product in order to add more value to the consumer and resells it to a customer as a new product or service.
Value network A system of interdependent organizations needed to source, support and deliver a product that provides customers with the highest level of value.
Value proposition The offer a producer makes to a customer.
Variable cost Expenses incurred by the business that change in proportion to the amount of product produced.