Flanker Brand – A line extension. Sometimes the term is meant to cover only those line extensions that are not premium-priced or low-priced.
Flanking – An indirect strategy aimed at capturing market segments whose needs are not being served by competitors. Flanking can be executed by targeting either a geographical segment or a consumer segment (group) that is not being served by competitors, when the competitor is unwilling or unable to retaliate.
Flash Report – As soon as the day’s sales figures have been read on whatever kind of register is in use, a tentative, unaudited report is released to give management the day’s results for comparison with budget or perhaps last year’s sales figure.
Flat Organization – This term (and the term horizontal organization with few or no intervening levels of management between the top executive and the workers. It presents a stark contrast to the classic hierarchical organization and bureaucratic organization with their layers of managers each of whom supervises a lower layer, leading finally to supervision of workers. The underlying concept of the flat organization is that trained workers with assigned goals, and with the authority to achieve the goals in their own way, will – working individually or in groups – be more productive than workers who are closely supervised by managers. Comment: A truly flat organization would be feasible only for a small business or service organization or institution in which all employees report directly to the boss. For a large organization wishing to delegate more authority down the line, a more descriptive term would be “flatter” organization. Layers of management are reduced to the minimum and workers are given more authority and responsibility to achieve their assigned goals. It should be noted, however, that in the case of a business (particularly where stock is issued to the public) the hierarchy cannot be dispensed with the entirely. The corporation is charged with many fiduciary and legal requirements. Consequently, top management must provide policies, direction, and controls to ensure that managers and workers at all levels understand and comply with these requirements.
Flat Rate – A price charged for advertising space or time does not include discounts based on the quantity of space or time purchased by the adviser.
Flexible Pricing – A practice of selling at different prices to different customers. This practice could be suspect under the Robinson-Patman Act.
Fighting – An advertising continuity or timing pattern in which advertising messages are scheduled to run during intervals of time that are separated by periods in which no advertising messages appear for the advertised item. Any period of time during which the messages are appearing is called a flight, and a period of message inactivity is usually called a hiatus.
Floating Exchange Rate – An exchange that is determined by private supply and demand and that is free to respond to market forces.
Floor Audit – The use of floor sales registers for all transactions, both cash and credit, so as to obtain from the register readings the total sales for each salesperson, department, and type of sale.
F.O.B. Destination – A shipping term that indicates the seller pays the freight to the destination. Title does not pass until the merchandise reaches its destination; thus, the seller assumes all risks, loss or damage while goods are in transit, except for the liability of the carrier.
F.O.B. Origin Pricing – A form of geographical pricing in which the seller quotes prices from the point of shipment. Free-on-board (F.O.B.) means it is the buyer’s responsibility to select the mode of transporting goods, choose the specific carrier, handle all claims, and pay all shipping charges.
F.O.B. with Freight Allowed – A form of delivered pricing in which the buyer arranges and pays for the transportation but deducts these transportation costs from the invoice total and remits the net amount.
Focus Group – 1. (consumer behavior definition) A method of gathering qualitative data on the the preferences and beliefs of consumers through group interaction and discussion usually focused on a specific topic or product. Also, it is a group or respondents brought together for this purpose. 2. (marketing research definition) A personal interview conducted among a small number of individuals simultaneously; the interview relies more on group discussion than on the series of directed question to generate data. it is also called group in depth interview.
Follower Advantage – The ability of non pioneering market entrants to gain long-term competitive advantages due to late entry. Mechanisms that lead to follower advantage include resolution of demand and market uncertainty, shifts in technology or customer needs, the ability to free-ride on first-mover investments in buyer education and infrastructure development, and learning from the pioneer’s product, positioning, or marketing mistakes.
Food and Drug Administration (FDA) – This administration, created by the Pure Food and Drug Act of 1906, has the power to set standards for foods and food additives, to establish tolerances for deleterious substances and pesticides in foods, and to prohibit the sale of adulterated and misbranded foods, drugs, cosmetics, and devices. All new drugs must be submitted to the FDA for approval, and applications must be supportive by extensive laboratory testing indicating efficacy and safety.
Food Court – In a shopping center, a concentration of restaurants and food service facilities in a particular area apart from stores, usually with a shared eating area.
Foot-in-the-Door Technique – A technique in which compliance is gained for a relatively large request by first gaining compliance to a relatively minor request; the compliance with the minor request positively affects later compliance with the larger request. For example, getting someone to make a small donation to a charity can be used to increase the probability that he/she will donate more later. The first, small request is the foot in the door.
Forced Sale – A sale of products at less than market price due to the urgent need for a merchant to liquidate merchandise assets, generally to meet the demand of creditors. It is also the sale of goods or property under order from the court;an ordered public auction sale.
Forcasting Models – In forecasting sales, share or other marketing objectives, a variety of models have been used, including time series models (e.g., moving averages, exponential smoothing, decompositional),econometric models (e.g., regression, in-put-output), and judgmental models (e.g., Delphi technique). Most common of the econometric models are those including marketing mix variables of the firm and its competitors, thus offering diagnostic insights. A brief review of the various forecasting models is offered in Lilien and Kotler.
Foreign Direct Investment – Investing in the country with control or influence over the direction of the investment. For balance of payments purposes, any holding of more than 20 percent of the shares of a company is considered direct as opposed to portfolio investment.
Foreign Exchange – Any currency that is purchased or sold in the foreign exchange market.
Foreign Exchange Market – The buyers and sellers of currencies that are traded for both spot and future delivery on a continuous basis.
Foreign Exchange Risk – The economic risks arising from fluctuating exchange rates.
Foreign Marketing – The phenomenon of marketing in an environment different from that of the home or base environment.
Foreign Trade Zones (FTZs) – An area where goods can be made, stored, assembled, refined, or repackaged and then exported without incurring customs duties or taxes. Maquiladoras in Mexico are an example.
Fork-lift Truck – A materials handling device to move unit loads. It is capable of moving loads both horizontally and vertically. The most common power sources are propane gas and electricity.