Diversification

Display Stock – The stock placed on various display fixtures that consumers can directly examine.

Display Store – A small store operated by a firm doing business by mails, in which items are presented for viewing and ordering only. The firm’s catalog is the base for the displays. See: Catalog Store

Display Type – (1) Any type lager than 14-point. (2) Type used for headline or other elements of the advertisement for which emphasis is wanted. 3. The tpe on a printed page, brochure, poster, or other advertising material that is larger than the type used for the body copy.

Disposable Income – Money left over paying Taxes, union dues, pension contributions, and the like. Not to be confused with discretionary income. Same as: Personal Disposable Income

Disposable Personal Income (DPI) – 1. Personal Income less federal, state, and local taxes. 2. A consumer’s total money income less taxes paid to all government agencies; popularly shortened to disposable income.

Disproportional Sampling – A method of drawing a sample from a population which consists of a number of groups the importance of which to the validity of the study is each not directly related to relative size. The basis for the allocation of numbers from each group must be specially determined for each study requiring this procedure.

Disproportionate Stratified Sampling – A stratified sample in which the individual strata or subsets are sampled in relation to both their size and their variability; strata exhibiting more variability is sampled more than proportionately to their relative size, while those that are very homogeneous are sampled less than proportionately.

Dissatisfaction – This occurs when pre-purchase expectations are negatively disconfirmed (the product performs worse than expected).

Dissection – Often applied to a specific group of merchandise within a department in a retail store so that dollar control may be facilitated. The relatively small group is accounted for separately from the rest of the merchandise.

Dissection Control – The subdividing of existing departments into relatively narrow groupings, then the establishing of dollar stock control records for each grouping.

Dissociative Group – A reference group that an individual does not want to join or be similar to.

Dissolve – An effect for blending scenes in a television commercial by means of which one scene is made to fade out even as the next scene fades in. Used often to denote the passage of time.
See: Opticals

Dissonance – See: Cognitive Dissonance

Dissonance Reduction – See: Cognitive Dissonance

Distinctive Competences – The strengths of the firm. That is, the particular characteristics of the firm that make it uniquely adapted to carry out its task (s) and to fulfill its purpose(s) in the industry within which it participates. The converse to the firm’s distinctive advantages are its weaknesses, which inhibit and limit the ability of the firm to fulfill its purpose.

Distinctiveness – The degree of serious actual competition existing in the market for the product or service. If none can be realistically expected for five years or more, it is called Lasting. Otherwise, it is called Perishable.

Distress Merchandise – 1. That group of items which for any reason must be sold even at a sacrifice. Applies to any type of goods in any business. 2. The goods that are (or soon will be) past the point where they can be sold at anything close to normal process. This includes perishable, unfashionable,damaged, and unseasonal merchandise that still may have some market value.

Distribution -(1) used generally as a synonym for marketing, but often refers in a restricted sense to the activity of physical movement of goods. (2) sometimes used to denote demand satisfaction when marketing is used to denote demand generation. (3) Roughly equivalent to channels of distribution.

Distribution Center – 1. A facility designed for efficient storage, the taking of orders, and the delivery of merchandise. Frequently found within the organization structure of major retail corporate chains.

Distribution Models – in modeling the key decisions of which channel of distribution to choose, management can use any of the general models for option generation and evaluation. Specialized models have been developed, however, for specific distribution decisions such as site selection and logistics. Most of the gravitational site selection models follow Huff (1964), who developed a model in which the attraction of a site is proportional to the size of the retail center and inversely proportional to the customers’ distance from the site. This model has been extended to incorporate not only size of retail site, but also image. These models are extensions of the Multiplicative Competitive Interaction model. Logistics-related optimization models have been developed for warehouse locations and inventory management. Most of the models are based on mathematical programming or simulations.

Distribution of Income – The apportionment of money and real income of an economy among individuals.

Distribution Order – An order placed with a supplier for timed and quantity shipment from one shipper to be separated at destination into parts each of which is to be delivered to a different consignee.
See: Assembly Service

Distribution Requirements Planning (DRP) – A planning technique that seek to time-phase movement of products from manufacturing through the distribution channel. The objective is to forward allocate as little inventory as practical while satisfying customer service goals.

Distribution Warehouse – A storage facility which serves as a transhipment point for accumulating stocks into larger shipments as units, and for breaking bulk into smaller quantities, or for effecting a transfer from one type of carrier to another type. Same as: Transit Warehouse

Distributive Education – A formerly common federally assisted program of education for workers in the distributive trades occupations at the high school and adult training level augmented by state and local support. Class work in school facilities is combined with con current work experience.

Distributive Trades – Usually refers to services, retailing, and wholesaling, and the activities associated with each of these.

Distributor – Essentially the same as: Service Wholesaler See: Industrial Distributor

Distributor’s Brand – A brand that is owned and controlled by a reseller (distributor) such as a retailer or a wholesaler, as opposed to a brand owned by the manufacturer. The term applies only to the brand itself, not to the product or to its content. It is often called a private brand or private label, and (with exceptions such as Sears’ brands) is usually not advertised heavily.

Distributorship – 1. A form of franchising in which the franchisee takes title to goods and further distributes them to sub-franchisees, whom he usually oversees. 2. 2. A type of franchise system wherein franchisees maintain warehouse stock to supply other franchisees. The distributor takes title to the goods and provides services to other customers.

Divergent Marketing – The establishment of separate organizations to carry out the marketing goals for each of the firm’s products or product lines. See: Convergent Marketing

Diversification – The process of adding unrelated products or product lines to a firm’s stock in trade. May be the result of customer demand or a deliberate attempt by management to spread risk. Often accomplished through merger or other form of acquisition. See: Simplification

Diversionary Pricing – A few products or services are priced very low and given emphasis on all promotional activities to create the illusion that all prices are low. Considered a deceptive practice when in fact the prices of other items offered for sale are not low compared with other sources.

Diversion-In-Transit – A change of direction from the original destination while freight is in transit.

Diversion on Transit – A privilege extended by railroads to shippers of carload lots whereby goods may be started in the general direction of markets without specifying an exact destination, which is to be determined when the goods reach one certain junction points. See: Reconsignment

Diverters – 1. An unauthorized, but legal member of a marketing channel. 2. Firms that buy unwanted merchandise from retailers and manufacturers and resell the merchandise to other retailers.

Divest Strategy – The sale or liquidation of businesses or product lines in order to limit losses or in order to avoid predicted losses and/or because the resources freed up can be better used in other businesses.

Divisional Organization – A form of organization that breaks the company into two or more business units (commonly called divisions). A division is a profit center and the division manager is responsible for attaining profit goals. A division may be responsible for a share of the company’s existing product lines or for a separate business. The division managers reports to a top corporate executive.

DIY – Trade abbreviation used a short for:do-it-yourself. Has particular relevance for those markets in which DIY enthusiasts exists, or in which a significant number of person can be induce to become enthusiasts.

DMA – Abbreviation for: Designated Market Area Indicated by a map showing the region in which originating station have a greater share of the viewing Households than those from any other area. See: ADI

Dockage -A charge against a vessel for the use of wharves or mooring facilities. It is generally based on the length of the vessel. The charge usually begins the day after the vessel arrives at the wharf.

Dodger – A circular of advertising intent delivered house-to-house. See: Handbill

DOI Dating – Indicates that the discount period and other elements of the terms of sale begin with the date of the invoice. In the absence of any modifying statement, it is generally assumed that DOI terms prevail.

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