Bait Advertising – An unethical and frequently illegal practice sometimes used by retailers in which a product is advertised at n extremely low price, but when a customer wants to buy the item, the sales clerk refuses to sell it, using every persuasive power at his command to disparage it and to switch the costumer to a higher-priced item. Often called: Bait-and Switch Tactics 2. An alluring but insincere offer to sell whereby the advertiser does not intend to sell the advertised product at the advertised price; the purpose is to increase customer traffic. It is also called bait and switch advertising.
Bait and Switch – A deceptive sales practice whereby a low-priced product is advertised to lure customers to a store, where they are then induced to buy higher priced models by disparaging the less-expensive product.
Balance of Payments – 1. (economic definition) The difference between monetary transactions of one country with the rest of the world in a given time period. 2. (global marketing definition) A record of all the economic transactions between a country and the rest of the world. For the world as a whole, theoretically,imports must equal exports. The balance of payments can be divided into the so called current account and capital account. The current account is for goods and services, the capital account is for money and investment.
Balance of Trade – The balance of merchandise imports and exports.
Balanced Scale – In marketing research, a query which provides an equal number of favorable and unfavorable category choices. See: Scales, Scaling
Balance Sheet Method – An approach used by salespeople to gain commitment from a buyer by asking the buyer to think of the pros and cons of various alternatives. It is often referred to as to the Ben Franklin method.
Balanced Selling – The action of selling all items in a vendor’s line in proportion to the sales potential within a given area, or to the profit associated with the items.
Balanced Stock – A plan inventory which makes available to customers in proportion to the demand all the merchandise they want in all price ranges.
Balance Tenancy – A condition in retailing in which an area’s type and number of stores exactly correspond to the mix proper to meet the wants of that area’s population. Applied also in a narrower sense to the mix of the stores in a large shopping center.
Balance of Area – The total population of a specific suburban area found by subtracting the central city’s population from the SMSA totals. Same as: Metropolitan Ring
Balance of Payments – The difference between the flow of money into and the flow of money out of the country. See: Balance of Trade
Balance-of-Stores Record – The central record of a Perpetual Inventory System. Same as: Stock Record, Stores Ledger
Balance of Trade – The difference between the monetary values of a country’s imports and exports. See: Balance of Payments
Balance Sheet Equation – See: Equity
Ballpark Pricing – A method of arriving at a price for a product by considering the average price level for similar products, selecting a price in this range, and generally working backwards to determine the feasibility of producing at the cost constraint disclosed.
Balop – Trade short word for an opaque projector used in television, or the art work prepared for such use.
Banded Premium – An item offered with another item as a form of factory package. The item is attached to the package by a band of paper, tape or plastic film.
Bandwagon Effect – People are buying a product because others are buying it. Demand is increased by the desire to conform or to be fashionable. The slope of the Demand Curve may be positive if this effect continues through a situation of rising price of the product. See: Law of Demand
Bang Tail – A remittance envelope with merchandise offers printed on the reverse side. Frequently used by high volume mailers such as oil companies and credit-card companies which find it profitable to engage in direct marketing of unrelated merchandise. Usually supplied free by the merchandise Syndicators.
Banner – Any eye-catching device made of paper, cloth or plastic designed to be hung from its top. Usually rectangular or triangle, it maybe taped to a window or wall, or strung overhead or between poles. Most often carries an advertising message, but may be attention-getting only. See: Pop Advertising
Bantam Store – A small, supermarket type store established to serve the convenience wants of its area. They usually stay open odd hours, some all 24 hours. Same as: Vest-Pocket Supermarket
Bar Chart – A pictorial graph in which the bars of varying length are used to show the relative amounts of the variables or characteristics of interest. See: Histogram, Line chart, Pictogram, Pie Chart
Bar Code – An information technology application that uniquely identifies various aspects of product characteristics as well as additional information regarding delivery and handling instructions. The information is read by scanning devices and greatly increases the speed, accuracy, and productivity of the distribution process.
Bargain Squares – Tables arranged in units of four to form squares on which merchandise is offered in reduced prices as regular practice.
Barge – A roomy boat, usually flat-bottomed, used chiefly on in-land water ways. Essentially the same as lighter. See: Dumb Barge, Lash
Barnacle Brand – A competitive brand which enters and attaches itself to the market in the latter stages of the product life cycle. Brought about by the characteristic of monopolistic competition to breed its own competition.
Barometric Price Leader – The company that generally interprets best the current economic situation in an industry and is, therefore, followed in the setting of prices for the industry.
Barrier – Any person whose job it is in the firm to control the interview time available to the purchasing agent, personnel manager, or the like, on a general basis. Salespeople often need to use special skills in order to be allowed to pass “barriers” such as secretaries or receptionists.
Barriers to Competition – The economic, legal technical, psychological, or other factors that reduce competitive rivalry below the level that would otherwise occur naturally. Barriers include branding, advertising, patents, entry restrictions, tariffs and quotas. Product differentiation is a barrier to competition.
Barriers to Entry – The economic, legal technical, psychological, or other forces that limit access to markets, and hence reduce the threat of new competition.
Barter – (1) The process of effecting transactions by the direct exchange of one good or service for another good or service in an agreed-upon ratio. Presently used quite frequently among countries. (2) in Broadcasting, the giving of merchandise by firms to stations in exchange for air time. The merchandise is to be used for prizes. The advertiser usually deals through a barter broker, not directly with the station. Some station will not so trade.
Barter Broker – See: Barter (2)
Barter Syndication – A way for a broadcast medium to obtain programming with no outlay of cash. An advertisers creates a program through a syndicator and places the program with a station. The program contains a number of commercials for the advertiser with the remaining positions open for the station to sell. In effect the advertiser is giving the station a program in exchange for his amount of commercial time over that station;hence the barter in the term.