Advertising Elasticity of Demand (AED) is a measure of effectiveness of increase in expenditure of advertising in increasing demand of a product. AED is always positive, meaning that the demand always increases with increase in advertising expenditure. Whereas values of this ratio below 1 mean that the increase in demand is less than the increase in advertising expenditure, while values greater than 1 indicate that the rise in demand is more than the rise in expenditure.
While this is a good way to estimate expected rise in advertising costs for growth in demand or the expected growth with rise in expense toward advertising, this is not the most accurate way. This ratio assumes that several other factors that may affect demand are constant, which cannot be the case in real life.
The formula is
This ratio can lie between 0 and ∞ (infinity).
Advertising Elasticity of Demand Factors
The demand of a certain good/service depends on, apart from expense on advertising, the following to name a few factors:
1. Income of the people of the region (state of economy): Expensive advertising may not yield very good results if the region has been recently hit by an economic crisis where people have been laid off on a large scale and are struggling to make ends meet; or in a region with generally low income.
2. Price of the product: No matter how much money is put in the advertising, if a similar product is in the market for a lower price that may take away from the success of the advertising.
3. Quality/Appeal of the ad: High expense doesn’t always mean high quality in terms of audio-visual or content. Or the ad just may lack appeal for the demographic the product is for.
All these factors can alter the demand of the product, and hence the AED. Thus, AED may not be the most accurate measure of effectiveness of increase in advertising expenditure.
Examples of Advertising elasticity of demand
Let us take an example of Pizza chain. If the pizza outlet spends money on promotion of an existing variant of Pizza, then the demand of that Pizza can increase and stay at that level even after the promotions are over.
On the other hand, the impact of an offer regarding a discount offer at a pizza outlet may be drastically high but the same may not be true for an offer at a jewellery store.
Hence, this concludes the definition of Advertising Elasticity of Demand along with its overview.
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Exhibit 27.11 Discount elasticity — an illustration.
Price elasticity (discount elasticity) is a measure of the responsiveness of sales quantity demanded to a (temporary) change in price, and it is determined by the following equation:
$$ \epsilon = \frac{\delta Q}{\delta P} × \frac{P}{Q}, $$
If ε > 1, demand is elastic. Any dip in price due to a price-off promotion is offset by a disproportionately large increase in sales volume. On the other hand, if ε < 1, demand is inelastic, a dip in price will result in a decrease in revenue.
Discount elasticity is essentially the price elasticity due to a temporary price reduction. Since consumers are much more sensitive to a discounted price promotion than a regular price reduction, the discount elasticity is a lot greater than the price elasticity.
Exhibit 27.11 provides an illustration of discount elasticity. The SKUs in this chart, with discount elasticity of less than 1 (such as B, M and P) will experience a decline in revenue (sales value) when promoted. Items such as these with low elasticity tend to possess high brand equity and can command a price premium. Discounting these products will result in the loss of revenue and profit.
Price promotions should be considered in the context of discount elasticities as well as the SKU’s profit margin. Low margin products need to be highly elastic to retain profitability when promoted.
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The advertisement expenditure has a direct effect on the demand for goods and services. In all modern businesses, advertisement plays a very important role. An increase in advertisement expenditure leads to an increase in the sale of a commodity. As advertisement has a saturation point, sales quantity increases up to a saturation point, and then it declines even if advertisement expenditure has increased by the businesses. The effect of advertisement expenditure by the firm on the demand for their product can be measured by advertisement elasticity of demand. This article describes the concept and degree of advertisement elasticity of demand.
Advertisement elasticity of demand is also known as the promotional elasticity of demand. It quantifies the change in quantity demand as a result of a change in advertisement expenditure. More specifically, it can be defined as the promotional change in quantity demanded of a product due to a proportional change in advertisement spending by the business firm. So, it is the ratio of the percentage change in the demand for a commodity with the percentage change in the advertisement expenditure as a promotional expenditure. Following is the formula to measure the coefficient of advertisement elasticity of demand.
EA= Proportionate or Percentage change in quantity demanded/Proportionate or the percentage change in the advertisement or promotional expenditure
EA = (ΔQ/Q)*100/ (ΔA/A)*100 = (ΔQ/ΔA)*A/Q
Where Q= Initial quantity; A=Initial units of advertising expenses; ΔQ= change in quantity demanded of goods; and ΔA= change in advertising expenses or the promotional expenses
Degrees or Types of Advertisement Elasticity of Demand
The advertisement elasticity coefficient is generally positive. The major types or degrees of advertisement elasticity of demand can be briefly explained below.
Relatively Elastic Demand (EA>1)
When a percentage change in quantity demand of a product is higher than the percentage change in advertisement expenditure by a firm then this is the case of the relatively elastic advertisement or case of advertisement elasticity of demand greater than one. It means a relatively lower percentage change in promotional expenditure beings a higher percentage increase in the quantity demand of a product.
Unitary Elastic Demand (EA=1)
It is the situation in which the percentage change in quantity demand is equal to the percentage change in advertisement expenditure of the firm. If a certain percent increase in advertisement expenditure brings an equal percentage change in sales volume of the business firm then promotional elasticity is equal to one.
Relatively Inelastic Demand (EA<1)
When the percentage change in quantity demand of a commodity is less than the percentage change in advertisement expenditure of the business firm then it is relatively inelastic demand resulted from the advertisement. It means a certain percentage change in the promotional expenditure by the business firm brings a change in sales volume by a lower percentage then it is the case of advertisement elasticity of demand less than one.
The following table shows the summary of degrees or types of advertisement elasticity of demand.
Concept and Degree of Advertisement Elasticity of Demand
Home Promotional Elasticity of Demand
(1) general: holding other variables constant, the percent change in demand that may result from increased promotional activity. Cf. price elasticity.
(2) retailing: the percent change in customer demand for merchandise that results from a percent change in promotional activity, when all other factors are constant. See elasticity of demand.
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Frequency of Purchase
Frequency polygon
Fringe accounts
Fringe benefits
Front end loader
Front loader
Front Margin
FRS
FSDU – Free Standing Display Unit FTE
FTSE 100
Fulfillment
Full Nesters
Full plate
Full Profile
Full profile conjoint
Full-Cost pricing
Full-Line Department Store
Full-line discount store
Full-line forcing
Full-Line Strategy
Full-Service (Advertising) agency
Full-Service advertising agencies
Full-Service research supplier
Full-service store
Full-Service wholesaler
Fullfilment House
Functional budget
Functional costs
Functional discount
Functional middlemen
Functional modification
Functional Organisation
Functional product differentiation
Functional wholesalers
Functions of attitudes
Funnel approach
Fusion coefficients
Futures
FY
G20 G7
GAAP
Gable end
GAF
GAFF (GAFFO)
GAFO
Galley
Game theory
Gap analysis
Garment center
Gatekeeper(s)/Gatekeeper
GATT
GBI
GDP
GE Strategic business planning grid
Gearing
General Agreement on Tariffs and Trade (GATT):
general credit contract
General Electric Business Screen
General Electric Strategic Business Portfolio Planning Grid
General journal
General ledger
General line distributor
general line house
General line retailer
General line wholesaler
General public:
Generic
Generic advertising
Generic brand
Generic competitors
Generic name
Generic need
Generic products
Generic term
Generics
Geocentrism
Geodemographic Data
Geodemography
Geographic deployment
Geographic organisation
Geographic pricing
Geographic segmentation
Geographic variables
Geographical concentration
Geographical organization
Geometric mean
Gestation period
Get our ducks in a row
Giffen goods
Gift voucher
Gimmick
Give-away
Give-away magazines
Global
Global attitudes
Global brands
Global marketing
Global products
Global values
GlobalNetXchange
Glut
GNFR
GNP
Go error
Goal-directed action
Goals
Going Concern
Going rate
Goint-rate pricing
Gondola
Gondola End
Good
Goodness of Fit
Goods In
Goods on approval
Goods on consignment
Goods-Services continuum
Goodwill
Goopert
Government Market
Government markets
GP
Grade label
Graeco-Latin square experimental design
Grammage
Graphic rating scale
Graphics
Gravitational model
Green fields project
Greeters
Gresham’s law
Grey (gray) market
Greying of (the population
Gripe session
GRN
Grocery
Grooming rituals
Gross circulation
Gross cover
Gross domestic product (GDP):
Gross Margin Gross National Product (GNP):
Gross opportunities to see
Gross profit
Gross rating points
Gross reach
Gross sales
Grossing up
Ground Work Stage
Group discussion
Group influences
Group interview
Group prospecting
Group sales training
Group selling
Growth Stage
Growth stage of product life cycle
Growth strategies
Growth-share matrix
GSM
Guarantee
Guaranteed price
Guaranteed Sales
Guided dreams
Gut feeling
GYPSY
H&L
H&LS
Habit
Habitual decision making
Habitual purchases
Habitual purchasing
Hackneyed
Haircut
half sizes
Hall test
Halo effect
Hand Marking
Hand-to-mouth buying
Handball
Handbill
Handling Allowance
Hang Tag
Hanger appeal
Hard Goods
Hard Lines
Hard Offer
Hard Sell
Hard sell approach
Hard Tag
Hard-boiled, Hard-headed
Hard-to-wrap
Hardship Point
Harmony
Harvesting strategy
Hawker
Head hunter
Head-on position
Head-to-Head competition
Heavy users
Hedge fund
Hedging
Hedonic consumption
Hedonists
Heterogeneous
Heterogeneous shopping goods
Heuristic
Hidden decision
Hidden objection
Hidden persuaders
Hidden price increase
Hidden value
Hierarchical models of choice
Hierarchy of effects
Hierarchy of effects models
Hierarchy of needs
High involvement products
High key
High pressure selling
High Speed Application
High-contact retailing
High-involvement decision making
High-involvement hierarchy
High-price strategy
Higher-order conditioning
HiLo
Hindsight bias
Hire purchase
Histogram
Historical analogy
Historical trend
History error
Hoisting the flag
Hold strategy
Holding Company
Holding costs
Holistic evaluation
Home audit
Home market
Home sales
Home shopping
Homogeneous goods
Hoppers
HoReCa
Horizontal analysis
Horizontal channel conflict
Horizontal cooperative advertising
Horizontal diversification
Horizontal integration
Horizontal market
Horizontal marketing management
Horizontal Marketing System
Horizontal price fixing
Horizontal publication
Horizontal Rebate
Horizontal selling
Host-selling
Hot shop
Hot Spot
House account
House-to-house
Household
Household names
Housewife time
Hype
Hypermarket
Hypermart / Hypermarket
Hypothecation
Hypothesis
Hypothesis testing
IAS
Iceberg Principle
ICT
Id
IDC
Idea generation Idea Generation
Idea marketing
Idea Screening
Ideal Other
Ideal Points
Identification
Ignition
Illegal Merchandise
Image
Image audit
Image Builder Pricing
Image congruence hypothesis
Image Enhancer
Image utility
Image-oriented change strategy
Image-oriented maintenance strategy
IMF
Impact
Impact Fee
Impairment charge
Impersonal threats
Implementation
Implicit alternative
Implicit Costs
Implied alternative
Implied Contract
Implied Warranty
Import duty
Import quota
Impulse
Impulse buying
Impulse goods
Impulse purchase
Imputation estimates
Imputed costs
In-house
In-pack premium
In-store promotion
In-Store Theatre
In-Suppliers
Inbound telemarketing
INBS
Incentive close
Incentive marketing
Incentives
Incidence
Income
Income distribution
Income effect
Income Statement
Income velocity of circulation
Incoterms
Incremental approach
Incremental demands
Incremental Sales
Incremental-cost pricing
Indemnity
Independent event
Independent retailer
Independent samples
Independent variable
Index of consumer sentiment
Index of predictive association
Indexing
Indirect competitive advertising
Indirect costs
Indirect denial method
Individual brand
Individual brand name
Individual level of analysis
Individual schema
Industrial advertising
Industrial buyer behaviour
Industrial buyers
Industrial distributor
Industrial goods
Industrial Goods
Industrial marketing
Industrial packaging
Industrial product classes
Industrial purchase behaviour
Industrial selling
Industry
Inelastic demand
Inept set
Inertia
Inertia selling
Inferior goods
Inflation:
Inflationary spiral
Influencers
Infomediary (business)
Infomediary (consumer)
Inforem
Informal group
Informal organisation
Information control
Information difference
Information flow
Information overload
Information portals
Information process
Information processing
Information utility
Information-oriented change strategy
Information-oriented maintenance strategy
Informational influence
Informational label
Informative advertising
Informaton Search
Ingratiation
Ingratiator’s dilemma
Initial Launch Quantity
Initial Margin
Initial sale
Initiatior
Inner pack
Inner-directed consumers
Innovation
Innovators
Input
Inquiry
Inquiry test
Inseparability
Insolvency
Instalment selling
Institutional advertising
Institutional market
Institutional Shareholders
Instock
Instore Compliance
Instrumental role
Instrumental values
Intake margin
Intangibility
Intangibility
Intangible asset
Intangible product attributes
Integrals
Integrated group
Integrative growth
Intense growth
Intensive distribution
Intensive growth
Intensive interview
Intensive selling
Intention
Intention to buy
Inter media comparisons
Interaction
Interaction error
Interactive marketing
InterCept
Interdependence analysis
Interim audit
Interim statement
Intermediary
Intermodal transportation
Internal (information) search
Internal attribution
Internal audit
Internal channel conflict
Internal comparison reliability
Internal data Internal environment
Internal rate of return (IRR)
Internal search
Internal validity
Internalisation
International
International marketing
International Monetary Fund
Interpersonal processes
Interpolation
Interval estimate
Interval panel
Interval scale
Interviewer bias
Interviewer effect
Interviewer-Interviewee interaction model
Intra firm data
Intransient
Intrinsic rewards
Intrinsic satisfaction
Introduction Stage
Introductory offer
Introductory stage (of product life cycle):
Inventory
Inventory management
Inventory Shrink
Inventory turnover
Inverse demand pattern
Invisible account
Invisible exports
Invisible trade
Invitation to treat
Invoice
Invoice dating
Invoice discount
Involuntary attention
Involvement
Isolation effect
Issues management
IT
Item Effective Date
Item Expiration Date
Item non response
Itemised rating scale
Itemised rating scale
IW
Jam Auction
Jewellers of America (JA)
JIT
Job
Job cost accounting
Job description
Job enrichment
Job evaluation
Job Lot
Job related
Job rotation
Job selling
Job sharing
Job specification
Job Ticket
Jobber
Join Promotion
Joined-up thinking
Joint Business Plan
Joint Decision Making Joint Demand
Joint Ownership
Joint venture
Joint Venturing
Jointly-Managed Inventory
Journey planning
Judgement Forecasting
Judgement sample
Judgement sampling
Judgment
Judgmental heuristics
Jumble Basket
Jumble Display
Jumbo pack
Junk bond
Junk mail
Jury of executive opinion
Just In Time (JIT) Purchasing
Just Noticeable Difference
Just-In-Time inventory system
K-means
KAM
Kanban
Katier’s Black Box Model
KD
Keen price
Keep-Out pricing
Kefauver-Harris Drug Amendment to the Food and Drug Act 1962
Kennel-keeper
Kerbside conferences
Key Account Management
Key Business Process
Key Buying Influence (KBI)
Key factors
Key influence people
Key Items
Key Performance Indicators
Key prospects
Key Resource
Key Selling Price
Keyed advertisement
Keynesian economics
Keystone Markup
Keystoning
Kickback
Kickback
Kimball Tags
Kinesic communication
Kinked demand curve
KISS principle
Kiting
Knock down (KD):
Knock Down Price
Knocker
Knocking competition
Knockoff
Knockoffs
Known Loss
Kolmogorov-Smirnov Test
KPI
KRA
KVI
Label
Labelling
Labour costs
Labour-intensive
Ladder Rack
Laggards
Lagged response
Laissez faire
Laissez-faire leadership
Lame duck
Lanchester theory
Landed Cost
Lanham Act of 1947
Last in, First out (LIFO)
Late majority
Latent Defect
Latent demand
Lateral diversification
Latin Square design
Lattice vortex network
Launch
Law of Demand
Law of diminishing returns
Law of large numbers
Law of small numbers
Law of supply and demand
Law of Threes
Lawyer
Layaway Plan
LC
Lead
Lead generation
Lead Time
Leader Pricing
Leading Indicators
Learning
Lease
Leasing
Least squares
Lecture
Legal entity
Legal purpose
Letter of credit
Letter of indemnity
Letter of intent
Level of involvement
Leverage
Leveraged buy-out (LBO):
Liabilities
Liability
Licensee
Licensing
Licensing
Licensing (international):
Licensor
Life cycle
Life cycle analysis
Life cycle cost
Life cycle profiling
Life stage buying power segmentation
Lifestyle Data
Lifestyle segmentation
Lifetime value of the customer
LIFO
Like-for-like Sales
Likert scale
Limited decision making
Limited Liability Company
Limited Problem Solving
Limited-function wholesaler
Linear market
Linksave
Liquidation (company going into liquidation)
Liquidity
Liquidity trap
Live Label
lmplied Assumption
Loan Capital
Logistical functions
LOHAS
Long-range plan
Lorenz distribution
Loss Leader
Loss-leader pricing
Lost account ratio
Lost order reports
Low involvement products
Low pressure selling
Low-hanging fruit
Low-involvement hierarchy
Lower-lower class
Lower-upper class
Loyalty
Loyalty factor
Loyalty objective
LP
Macro Space
Macroenvironment
Macrosales Model
MADA (money, authority, desire, access)
Made-to-measure
Magnuson-Moss Improvements Act of 1975
Mail Order
Mail-in-Premium
Maintained Mark-On
Maintained Markup
Maintenance Marketing
Maintenance selling
Maintenance strategy
Make Bulk
Make Good
Make or buy decision
Maker
Making the Plan
Man profile
Management
Management audit
Management by exception (M.B.E.)
Management by objectives (M.B.O.)
Management Contracting
Management development
Management information systems (MIS)
Managerial applications matrix
Managerial Climate
Managerial judgement
Manipulative selling techniques
Manufacturer’s agent
Manufacturer’s brand
Manufacturer’s selling price
Manufacturers’ recommended price
Mapping
Margin
Marginal analysis
Marginal cost
Marginal costing
Marginal profit
Marginal revenue
Marginal utility
Mark-down ratio
Mark-up
Mark-up pricing
Mark-up ratio
Markdown
Market
Market acceptance
Market attractiveness
Market attrition
Market broadening
Market challenger
Market connection
Market coverage
Market density
Market Development
Market diversification
Market dynamics
Market ecology
Market entry barriers
Market expansion
Market factor
Market Follower
Market forecast
Market growth rate
Market index
Market indicators
Market intelligence
Market Leader
Market maker
Market Management Organisation
Market manager
Market mavens
Market minimum
Market niche
Market nicher
Market Nichers
Market opportunity
Market opportunity evaluation
Market overt
Market pattern
Market Penetration
Market penetration pricing
Market place
Market planning
Market position
Market Positioning
Market potential
Market Price
Market profile
Market reach
Market recognition
Market requirement
Market research
Market sales potential
Market saturation
Market Segment
Market Segmentation
Market share
Market Skimming Pricing
Market target selection
Market Targeting
Market testing
Market theory
Market trend
Market value
Market weight
Market-based marketing organisation
Market-centered company
Market-driven economy
Marketing
Marketing advantage
Marketing Audit
Marketing budget
Marketing chain
Marketing channels
Marketing communications
Marketing communications channel
Marketing communications manager
Marketing communications mix
Marketing Concept
Marketing consultants
Marketing Control
Marketing control system
Marketing controller
Marketing cost analysis
Marketing database
Marketing department
Marketing department marketing
Marketing environment
Marketing era
Marketing ethics
Marketing expense-to-sales ratio
Marketing function
Marketing function account
Marketing Implementation
Marketing information
Marketing information system
Marketing Information System (MIS)
Marketing Intelligence
Marketing Intermediaries
Marketing Management
Marketing Management Process
Marketing manager
Marketing Mix
Marketing models
Marketing Myopia
Marketing objective
Marketing opportunities
Marketing opportunity analysis
Marketing organisation
Marketing orientation
Marketing plan
Marketing planning process
Marketing program
Marketing Research
Marketing research brief
Marketing research objectives
Marketing research process
Marketing research to-sales ratio
Marketing science
Marketing services
Marketing services agencies
Marketing services manager
Marketing Strategy
Marketing Strategy Development
Marketing synergy
Marketing tools
Marketing upweight discounts
Markov chain
Mass Activator/Deactivator
Mass and selective media
Mass marketing
Mathematical forecasting techniques
Matrix
Matter
Mature consumer
Maturity stage
Maturity stage of product life cycle
Maximal awareness
Maximum brand exposure
Maximum chance criterion
Mazur Plan
Me-Too
Mean
Mean audit date
Means-end-chain model
Measurability
Media planning
Media research
Media selection
Media strategy
Media-weight
Median
Mediation
Medium
Merchandise
Merchandise allowance
Merchandiser
Merchandisers
Merchandising Merchandising Conglomerate
Merchant wholesaler
Metamediary
Mezzanine
Micro Space
Microenvironment
MILO
Mission Statement
Mod
Modern Trade
Modulars
Monetary policy
Monopolistic Competition
Monopoly
Monopsony
Moral Appeals
Moral pricing
Morphological analysis
Mortality error
Mortgage-backed securities (MBS)
Motivation
Motivation research
Motivational research
Motive
Motive (or Drive)
Moving average
MPC
MRO (Maintenance, repair, and operating equipment)
MRT
MTD
MTR
Mudule
Multi brand strategy
Multi channel marketing system
Multi industry companies
Multi modal transportation
Multi step flow model
Multi-client survey
Multi-dimensional scaling
Multi-level marketing
Multi-media advertising
Multi-segmented operations
Multi-stage sample
Multi-variable segmentation
Multiattribute models
Multichotomous question
Multicollinearity
Multiform corporations
Multilateral trade
Multinational
Multinational Company
Multiple channel system
Multiple choice question
Multiple correlation
Multiple exchanges
Multiple marketing channels
Multiple niching
Multiple segmentation approach
Multiple sourcing
Multiple unit pricing
Multiple(s)
Multiplier
Multivariate
Multivariate analysis
Mus
Nailed Down
Naive forecasting model
NAM
Narrow and Deep
Narrow Market
Narrowcasting
National account
National account marketing/management
National accounts
National brand
National campaign
National introduction
National marketing manager
National press
National sales manager
National Wholesaler
Nationalisation
Natural
Natural Business Year
Natural Classification of Expenses
Natural Environment
Natural Trading Area
Near Pack Premium
Need
Need Awareness
Need for affiliation
Need for cognition
Need for power
Need objection
Need-arousal
Need-directed consumers
Need-driven group
Need-gap analysis Need-Satisfaction Approach
Needle Trades
Needs
Negative currency
Negative demand
Negative equity
Negative reinforcer
Negativity bias
Negligent behaviour
Negotiated contract
Negotiated price
Negotiated rate
Negotiation
Negotiation selling
Negotiations
Neighbourhood store
Nepotism
Nested
Net
Net audience
Net Back
Net Cost
Net cover
Net Current Assets
Net Markdown
Net Market
Net market maker
Net Operating Income
Net present value
Net Present Value
Net price
Net profit
Net Profit Ratio
Net Purchases
Net rate
Net reach
Net Realisable Value
Net Sales to Inventory Ratio
Net Space Yield
Net Terms
Net Working Capital
Net-Net
Network analysis
Network effect
Network marketing
Networking
Neural Networks
New account-conversion ratio
New Product
New product committee
New Product Development (NPD)
New product duplication
New Product Intoductions
New products
New task buying
News agency
Niche marketing
No Frills Product
No-Name Brands
Non Durable goods
Non Fixed Booking
Non-Cabled Point of Sales (POS)
Non-Marking
Non-replenishable
Non-Voting Shares
Noncumulative Quantity Discount
Nonpersonal Communication Channels Nonrecurring charge
Normal Margin Retailer
Normal Price
Normalize
Not On File (NOF)
NPI
O2C
Objection
Objective
Objective and task method
Objective and Task Method
Objective and Task Technique
Objective Value
Obligee
Obligor
Observational Research
Observational Technique
Obsolescence
Occasional/Seasonal Role
Odd Pricing
Odd-Even Pricing
OECD
Off Price Merchandise
Off Price Retailing
Off Price Store
Off Sales
Off-price retailers
Offer
OffPrice
OLAP
Oligopolistic Competition
Omnibus Co-operative Advertisement
Omnichannel
On Account
On Approval Offer
On Consignment
On Pack
On Pack Premium
One Price Policy
Ontology
OOC
OOS
Open Assortment
Open Bid
Open Credit
Open Date Labelling
Open Distribution
Open Order
Open Stock
Open to Buy (OTB)
Open to Buy by Classification
Open to Buy Report
Open-Book Credit
Opening Inventory
Opening Price Point
Operating Expenses
Operating Losses
Operating Margin
Operating Profit Ratio
Opinion Leader
Opportunity Gap
Orange Goods
Order Book
Order Cycle
Order Forecast
Order Form
Order Picking
Ordinary Shares
Ordinary Terms
Organization Image
Organization Marketing
Organizational Buying
OSCA
Out of Stock
Outbound Telemarketing
Over the Counter Selling
Over-the-Counter (OTC)
Overbought
Overrider Discount
Own Brand
Pack
Package
Package Engineering
Package Insert
Package Store
Package-Band Premium
Packaged Goods
Packaging
PAD
Pallet
Pantry Check
Par Value
Para-Salesperson
Paradigm
Parasite Store
Pareto Principal
Pareto Principle
Partial Payment
Party Selling
PAT
Patent
Patronage Discount
Patronage Divident and Rebate
PCV
PDA
Peak Season
Pedestrian Mall
Peg Tags
PEN
Penetrated Market
Penetration
Penetration Pricing
Penetration Strategies
Perceived Risk
Perceived Value Pricing
Perceived-value pricing
Percentage Lease
Percentage Markup System
Percentage of Sales Method
Perception
Perceptual Mapping
Periodic Inventory
Perishability
Perpetual Inventory
Perpetual Inventory Control
Person Marketing
Personal Communication Channels
Personal Influence
Personal Selling
Personality
Phantom Shoppers
Pharmacy
Physical distribution
Pick-And-Pack
Piece Goods
PIG guides
Piggyback
Pilferage
PIM
Place Marketing
Planned Average Monthly Stock
Planned Impulse Buying
Planned Obsolescence
Planned Purchases
Planned Shopping Centre
Planogram
Planogramming
Plateauing
Pleasing Products
PLU
Plug PM
POD
POG
Point Of Equilibrium
Point of Purchase
Point of Sale (PoS)
Point Of Sale Perpetual Inventory Control System
Point Scoring
Point-Of-Sale Terminal (Post)
Polarity Of Retail Trade
Political Environment
Ponzi scheme
Pooled Buying
Pooled Purchasing
POP
POR
Portfolio Analysis
POS – Point of Sale
Positioning
Postpurchase Behaviour
Potential Market
Power Aisle
PPI
Pre-Buying Process
Preference Shares
Preferred Role
Premium
Premium Offers
Premium Pack
Premium Representative
Prepackaging
Price
Price Adjustment
Price Code
Price Comparison
Price Competition
Price Control
Price Cutting
Price Discretion
Price Discrimination
Price Elasticity
Price Elasticity
Price Escalation
Price File
Price Floor Pricing
Price Index
Price Leadership
Price Line
Price Line Control
Price Lining
Price Negotiation
Price Planning
Price Point
Price Sensitive
Price Shading
Price Taker
Price Taker
Price Takers
Price transparency
Price War
Price-Earning Ratio
Price-Off
Pricing
Pricing Below The Market
Primary Data
Primary Demand
Private equity fund
Pro Forma Invoice
Problem Recognition
Procurement hub
Produce
Producer Co-operative
Producer Controlled Brands
Product
Product Assortment
Product Concept
Product Concept
Product Concept Philosophy
Product Development
Product Development Strategy
Product Fit
Product Idea
Product Image
Product Life Cycle (PLC)
Product Line
Product Management Organization
Product Manager
Product Mix
Product Position
Product Positioning
Product Recall
Product Replenishment
Product Salesforce Structure
Product-Line Departmentalisation
Product/Market expansion Grid
Production Concept
Profit
Profit And Loss Account
Profit and Loss Statement
Profit Centre
Profit Generator
Profit Per Square Foot Of Selling Space
Profit Sharing
Profitability Control
Profitability Range
Programmed Merchandiser
Promotion
Promotion Mix
Promotional Advertising
Promotional Allowance
Promotional Discount
Promotional Elasticity of Demand
Promotional Markdown
Promotional Package
Promotional Pricing
Proof of Purchase
Proprietary Drug
Proprietary Store
Prospect
Prospecting
Proximity Deactivation
Psychographic Market Segmentation
Psychographic segmentation
Psychographic segmentation
Psychological Pricing
Public Relations
Pull Distribution Strategy
Pull Strategy
Pulling Power
Purchase Decision
Purchase Decision Hierarchy
Purchase Distribution
Purchasing Agent
Purchasing hub
Purchasing Power
Pure Competition
Pure Impulse Buying
Pure Monopoly
Push or Pull Distribution Strategy
Push Stragegy
Push the envelope
Pyramid Selling
Q-system
Qualified available market
Qualified Lead
Qualified Prospect
Qualifying
Quality
Quality Check
Quality Creep
Quality Discount
Quantitative easing
Quantity Check
Quantity Discount
Quasi-Chain
Question Marks
Quick Assets
Quick Ratio
Quick Response (QR) Inventory System
Quota
Quoted Price
Rack
Rack Jobber
Rack Jobber
Radial Site Radiation Selling
Radio Frequency (RF)
Rag Trade
Rain Check
Range Change
Range Cycle
Range Measurement
Ranging
Rate of Sale
Rate of Stock Turnover
Rate War
Rating
Ratio of Finished Goods Inventory to the Cost of Goods Sold
Rational appeals
Rational Buying Motives
RDC
Re-merchandising
Reach
Rebate
Rebate Offer
Rebuyer
Recap Report
Receipt of Goods Dating
Receipt of Goods Terms
Receivables
Receivables Turnover
Receiving Dock
Recency/Frequency
Reciprocity
Recovery
Red Goods
Redemption
REDs
Reference groups
Referral Leads
Referral Premium
Refund
Refund Offer
Regional Chain
Reilly? Law of Retail Gravitation
Remainder
Removal Sale
Reorder Window
Replacement Cost
Replacement Rate
Replenishable
Replenishment
Repo
Repurchase Rate
Request for Proposals (RFP)
Request for Quotation (RFQ)
Resale Price Maintenance
Reseller Market
Reserve Stock
Residual Stock
Resource Analysis
Retail
Retail Accordion Theory
Retail Advertising
Retail Audit
Retail Calendar
Retail Catalogue Showroom
Retail Chain
Retail Display Allowance
Retail Display Allowance (RDA)
Retail Franchising
Retail In-Stock Percentage
Retail Marketing
Retail Merchandise Management System (RMM)
Retail Method
Retail Method of Accounting
Retail Price Maintenance
Retail Reduction
Retailer
Retailers
Retailing
Retailing Strategy Mix
Retained Profits
Return On Investment (ROI)
Return on Investment Approach To Advertising
Return On Investments
Return per Square Foot
Returns and Allowances
Returns Centre
Revaluation
Revenue
Reverse auctions
Revolving Credit
RFI
RFM
Ring-fence
Risers
Risk Analysis
Risk Reduction
ROA (Return on Assets)
ROAE
ROG
ROG Dating
Role
Roll-Out
Rollback
ROM
Round-The-Clock Retailing
Routine
Routine Response Behaviour
Routing
RPO
RSV
Run rate
Safety Stock
Sales Based Ordering
Sales force Management
Sales Forecast
Sales Orders and Back Orders
Sales Promotion
Salesforce Promotion
Salesperson
Salutary Products
Salvage Goods
Sample
SBO
Scanner
Scorecard
Scrambled Merchandising
SDA
Sealed-bid Pricing
Seasonal Discount
Secondary Data
Securities lending
Securitisation
Segmentation
SEL – Shelf Edge Label
Selective Demand
Selective Distribution
Selling Process
Sellling Concept
Sensitivity Analysis
Sequential Merchandising
Served Market
Service Level
Services
Share Options
Shareholder
Shareholder Funds
Shelf Barker
Shelf Elasticity
Shelf Talker
Shipper
Shipping Window
Shopper
Shopper Flow
Shopping Center
Shopping Goods
Short selling
Shorts
Shrinkage
Sign Post Brands
Signage
Sister Company
SKU / Stock Keeping Unit
SLAS
SMART
SMB
Social Classes
Social Marketing
Societal marketing concept
SOHO
SOR
Sovereignty
Space Elasticity
Space Flexing Space Management
Space Management Systems
Spaceman
Specialty Goods
Specialty Store
Spiff
Spot market
Spread (yield)
SPV
Standards
Standarized Marketing Mix
Stars
Statistical Demand Analysis
Status quo pricing
Sterling Weighted Distribution (UK)
Sticky, stickiness
Stimulus
Stock Turnover
Stockbroker
Stocks And Work-In-Progress
Store Demographics
Store Specific
Store Unique Markdowns (SUM)
Strange attractor
Strategic Business Unit
Strategic Control
Strategic Group
Strategic Planning
Strategy
Stuffers
Sub Category
Sub-groups
Sub-prime mortgages Subculture
Subsidiary Company
Supercentre
Supermarket
Superstore
Suppliers
Supply and services
Supply chain management
Supply Management
Survey research
SVE
SVI
SVTP
Switching costs
Syndicator
Systems buyinng
T-Stands
Tactics
Tag-Pollution
Tailored Ranging
Tangible Assets
Tannoy
TARE
Tariff
Taxonomy
Tearsheet
Test Marketing
The helicopter view
Think outside the box
Ti
Tier 1 capital
TiHi
Till Aisle
Time Value of Money
Time-series analysis
TISP
TOB
Total costs
Total Market Demand
Tote
Trade and Consumer Promotions
Trade effectiveness
Trade efficiency
Trade Promotion
Trade-in allowance
Trademark
Trading Ops
Traffic Building
Traffic Flow
Traited
Transaction
Transaction Building
Tri-level Round
Trigger funding
Trunk show
TUC
Turf Protection
Twig
UEP
Underwriters
Undifferenciated marketing
Uniform delivered pricing
Unit Control
Unit pricing
Unit-of-Sales Method
UPC
UPC / Universal Product Code
USB
UVM
Value Chain Value Engineering
Variable Overheads
VAT
Vendor
Vendor Managed Inventory
Vendor Pack
Viral
Virtual distributor
Virtual private marketplace
Visual Merchandising
VLE
VMI
VOD
Volume Adjustment
VPI
VSB
WACD
WAGJLL
WAP
Warehouse Alignment
Warehouse Pack
Waterfalls
Weight Purchase
Wheel of Retailing
Wholesale Club
WIGIG
WOMBAT
Work-In-Progress
Workflow Marketplace
Working Capital
WOW
Write-down
XML
Yield
Zero Stocks