Parasite Store – A store that lives on existing traffic flow that originates from circumstances other than its own promotional effort, or customer service.
Partially Integrated Division – This division contains production and marketing functions except for sales. Personal selling is provided by a centralized sales organization selling the products of two or more divisions. A centralized sales organization can be more cost effective when the divisions produce products that are sold to similar markets through the same channels of distribution.
Party Selling – 1. A direct selling approach that involves demonstrating and selling products to a group of consumers attending a party at a neighbor’s or friend’s house. 2. A practice in which salespeople arrange to have a party in a home, at which merchandise is demonstrated to a group of the host’s or hostess’ friends.
Pass Strategy – A public relations strategy designed to move past government policy makers, public interest groups, and other special interest gatekeepers in order to communicate directly with the public at large.
Pass Up Method – A method used by salespeople to respond to a prospect talk, acknowledging that the concern was heard, and then moving on to another topic without trying to resolve the concern.
Pass-along Deal – A seller’s offer in which an item of value such as a price reduction, gift, premium, coupon, etc., is offered to the intermediary channel member with the intent that the incentive be re-offered to others in the channel.
Pass-along Readers – The members of the audience of a print media vehicle who do not subscribe to the publication but obtain their copies from people who do subscribe. they are also called secondary readers in contrast to subscribers, who are called primary readers.
Pass-through Rate – The number or percentage of sales promotion incentives offered to wholesalers or retailers by manufacturers that are extended to consumers by those channel members.
Patent – 1. (product development definition) The legal right of exclusive use and license granted by a government to the person who invents something. An invention is patentable if it is useful, novel, and non obvious process, machine, manufacture, or composition of matter. 2. (legislative definition) Patents (and patent laws) provide the owner the exclusive right to produce and sell the invention for a period of seventeen years. Patents are considered incentives to inventors, and the law recognizes the inherent, inconsistency between antitrust laws, which are designed to foster competition, and patent laws, which restrict competition.
Patronage Discount – The offering of a price reduction based on previous customer relationship or preferred customer standing. Such a discount is usually offered because of an established relationship between the seller and buyer.
Patronage Dividend – Any surplus accrued from the spread between prevailing market prices and cost of merchandise and store operation that is paid to members (of a cooperative) in proportion to their volume of purchase.
Patronage Motives – The motives that drive an individual toward selection of a particular outlet, retailer, or supplier of services.
Payback – The time, usually in years, from point of full scale market introduction of a new product until it has recovered its costs of development and marketing. The market testing stage is usually considered to be a part of the evaluation process (and not in the payback period), but if a market roll out is used, practice varies on when the payback period should begin.
Payout Budgeting – An advertising budget method in which advertising expenses are treated as part of the investment required to establish a new product.
Penetration Price Policy – A pricing policy that sets a low initial price in an attempt to increase market share rapidly. This policy is effective if demand is perceived to be fairly elastic.
Penetration Pricing – The strategy of setting a product’s price relatively low in order to generate a high sales volume. This strategy is commonly associated with pricing new products that do not have identifiable price-market segments.
Peoplemeter – A device used to measure when TV is on, to what channel it is tuned, and who is in the household is watching it; each member in a household is assigned a viewing number that the individual is supposed to enter into the peoplemeter whenever the set is turned on, the channel is switched, or the person enters or leaves the room.
Per Capita Income – A nation’s total income divided by the number of persons in its population. Gross national product is a popular, but technically incorrect, surrogate for total income.
Per se Illegality – An act that is illegal by, of, for, or itself.
Per se Rules – 1. (legislative definition) Rules that define clear cut business violations. For example, restraint upon price competition when sought to be effected by combination or conspiracy is per se unlawful. 2. (economic definition) A rule under which the prosecution needs to show only that the alleged act was performed.
Perceived Conflict – A situation in which one channel member perceives another channel member(s) to be engaged in behavior that is preventing or impending the attainment of its goals.
Perceived Equity – The degree to which a salesperson believes that he or she is being rewarded fairly for his or her level of performance relative to his or her peers.
Perceived Quality – The amount of quality buyers believe a product or service has. perceived quality is usually based on some information or cues about the product, e.g., its price, brand name, or country of origin.
Perceived Risk – 1. (consumer behavior definition) The expected negative consequences of performing an action such as purchasing a product. 2. (consumer behavior definition) Most, of it all, decision contain some risk, be it monetary, physical, psychological, or social. The degree of risk that is perceived to exist by the individual making a purchase or behavioral decision has been termed perceived risk in the consumer behavior literature.