Corrective Advertising

Copy Slant – The particular way in which a selling point is present in an advertisement. Each individual audience segment should have each own matching slant copy.

Copy Testing – Research done to evaluate proposed advertising appeals as to clarity and impact.

Copythinking – All of the activities, including gathering of data, research, and investigation, required to give the copywriter a clear understanding of the goals sought and means to reach those goals, before he begins to write the copy.

Copywriter – A person who writes advertisements. A person with good verbal abilities who is talented in creating advertising ideas and skilled at writing advertising copy.

Core Product – The central benefit or purpose for which a consumer buys a product. The core product varies from purchaser to purchaser. The core product or core benefit may come either from the physical good or service performance, or from the augmented dimensions of the product.

Corporate Advertising – Same as: Institutional Advertising

Corporate Buy Agreement – A contractual buy-sell agreement in which the volume needs a multiple sites are aggregated. Usually, the buyer negotiates a favorable price and commits to a minimum annual purchase volume.

Corporate Purpose – A refinement of the marketing concept which provides a base for corporate planning at the highest echelons. It involves a thorough analysis of how a firm may justify the right to exist. It specifies how the firm’s products or services will fill the needs that exist within an industrial or social economy, how the firm may be a good citizen, how it may interact with shareholders and employees, and any other matters pertinent to the firm’s place in its broad environment. If properly done, this document will provide the guide for policy direction for the selection of products, fixed investment, and public relations. To remain effective it must be monitored constantly to reflect changing influences.

Corporate Relations – Another way of referring to Reciprocity.

Corporate Culture – The patterns and norms that govern the behavior of a corporation and its employees; particularly, shared values, beliefs, and customs.

Corporate Marketing System – A marketing channel that achieves vertical coordination through the joint ownership and operation of two or more channel members on different levels of distribution.

Corporate Purpose – The raison d’etre of a firm that describes the scope of a firm and its dominant emphasis and values. The purpose (or mission) of an organization is a function of five elements: (1.) the history of the organization; (2) the current preferences of the management and/or owners; (3) environmental considerations; (4) the resources of the organization; and (5) the distinctive competences of the organization.

Corporate Relations – The use of communication and public relations techniques to build favorable attitudes toward a particular company with competitors, consumersm and financial community, stockholders, and other publics.

Corporate Strategy -The overall plan  that integrates the strategies of all the businesses within the corporation. It usually describes the overall mission, the financial and human resources strategies and policies that affect all businesses within the corporation, the organization structure, the management of the inter-dependencies among businesses, and major initiatives to change the scope of the firm such as acquisition and divestment.

Corporate Vertical Marketing System – A form of vertical marketing system in which all or most of the functions from production to distribution are at least partially owned and controlled by a single enterprise. Corporate systems typically operate manufacturing plants, warehouse facilities, and retail outlets.

Corrective Advertising – Under present law the FTC may require an advertiser who has been found to have placed deceptive advertising to devote an amount of space or time in the future advertisements with disclosure of the previous deception. It can be an expensive penalty.

Correlation – The measurement of the degree to which changes in the dependent variable are associated with changes in the independent variable. Care should be taken not to interpret a high degree of movement of one variable in the same or opposite direction as another, associated variable as a fact of causation.

Correlation Analysis – A statistical technique used to measure the closeness of the linear relationship between two or more intervally scaled variables.

Cosponsoring – Two or more sponsors sharing the cost of a single broadcast program.
See: Alternate Sponsorship, Participating Program, Spot

Cost – The money expended to produce market a product or service.

Cost Analysis – A sales management evaluation and control method for monitoring sales force performance. A cost analysis involves monitoring the costs of various selling functions across individual salespeople, districts, products, and customer types. When put together with the data from a sales analysis, this procedures allows a firm to judge the profitability of various products, customer types, and territories.

Cost And Freight (CFR) – The terminology is the same as cost insurance freight except the seller is not responsible for risk or loss at any point outside the factory.

Cost Center – A division,department, or subdivision thereof; a group of machine, operator, or any other unit of activity into which a business is divided for cost assignment and allocation.

Cost Code – A method of indicating item to cost information on price tickets so that only initiated personnel can interpret it. A common method is through the use of letters from an easily remembered word or expression with the nonreapeting letter to numerals

Cost Complement – Same as: Cost Multiplier

Cost Department – A manufacturing or processing department within a retail store that is operated on the cost method of accounting. Also, one of the independent departments selling merchandise or service (principally service) but carrying no inventories at retail value- e.g. restaurant, barber shop, fur storage, and beauty parlor.

Cost Insurance Freight (CIF) – Under this contract the risk of loss or damage to goods is transferred to the buyer once the goods have passed the ship’s rail. But the seller has to pay the expense of transportation for the goods up to the port of destination, including the expense of insurance.

Cost Inventory – The actual cost or market value, whichever is lower, of the inventory on hand at anytime. The term seldom refers to the original price paid for the merchandise, but rather the present depreciated worth. If the original price is to be designated, the term generally used is billed cost of inventory.

Cost Multiplier – In retailing, the average relationship of cost of goods to the actual retail value of the goods handled in an accounting period.    Same as: Cost Complement, Cost Percent

Cost of Credit – What it costs in addition to cash price for the privilege of buying something with a promise to pay in the future. Found by subtracting from the total of all values given and promised, the cash price of the item plus applicable sales tax.

Cost of Industrial Sales Call – The cost includes the salaries, commissions, bonuses, travel expenses, and entertainment expenses that a company encounters each time a salesperson makes a face-to-face presentation to one or more persons.

Cost of Living – The money required to maintain a particular standard of living expressed in terms of the purchase of specified goods and services.

Cost-Oriented Pricing – A way of arriving at a selling price by taking the invoice cost of an item and adding a certain percentage to it. Essentially the same as: Cost-Plus Pricing

Cost Oriented Strategy – An approach to improving performance by reducing the costs per unit. The cost advantage can be used to improve profit margins or increase market share by cutting prices.

Cost of Living Allowance (COLA) – An adjustment to wages and earnings, particularly during periods of rapid increases in prices, to keep them in line with the cost of living.

Cost or Market – A way of assigning money value to a physical inventory. Each item is valued at cost or market price prevailing, whichever is the lower. Considered a conservative approach.

Cost Per Call – The cost incurred on the average for a salesperson to make one call to a customer or prospect, based on all the expenses associated with the sales activity.

Cost Per Inquiry – When direct mail advertising is used for the purpose of developing leads for salespersons to follow up, this is often a tentative measure of selling expense and a base for estimating the probable final cost of sale. Example: if a mailing costs $5,000 and the mailing produces 500 inquiry replies, then the cost per inquiry is $10. See: Cost Per Sale

Cost Per Sale -(1) In direct mail advertising, the cost of making one sale as calculated with reference to the cost of the mailing. Example: if the cost of a mailing is $5,000 and if as a result of mailing 10 sales are made, then the cost per sale is $500. See: Cost Per Inquiry
(2) In the usual personal selling situation, the cost of obtaining an order based on all expenses associated with the sales activity. See: Cost Per Call

Cost Plus – A method of determining the selling price of goods or services whereby cost is increased by an agreed upon increment.

Cost-Plus Pricing – Setting the price of an item by adding to its cost a certain percent of its cost, or sometimes a certain dollar amount. See: Pricing

Cost-Price Judgment – When a buyer feels he knows the approximate cost of an item, he may react to the price on the basis of whether or not he feels a mark-up to be reasonable. Regardless of what he might have to pay for the same satisfaction from another source, he will resent the price if he considers the cost-price relationship too great.

Cost-Ratio Method – A procedure for evaluating sources of supply whereby all identifiable purchasing and receiving costs are related to the value of the shipments. The result is a Quality-Cost Ratio found by dividing for any one supplier the associated costs by the total value or purchases. Its major disadvantage lies in the difficulty of arriving at accurate cost data. Perhaps the best procedure is one which combines this one with the Categorical Method and the Weighted-Point Method.

Cost Trade-Off – Spending more on one aspect of marketing in order to reduce the cost of another aspect even more. An overall increase in efficiency may result. See: Total Cost Approach

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