Hard Goods

Gross Rating Point (GRP) – A measure of the total amount of the advertising exposures produced by a specific media vehicle or a media schedule during a specific period of time. It is expressed in terms of the rating of a specific media vehicle (if only one is being used) or the sum of all the ratings of the vehicles included in a media schedule. It includes any audience duplication and is equal to the reach of a media schedule multiplied by the average frequency of the schedule.

Group Buying – The consolidating of buying requirements of several to many individual stores.

Group Product Manager – This manager reports to the marketing manager and supervises several product managers and/or brand brand managers in companies, or divisions of companies in which there are more product managers and/or brand managers than the marketing manager can supervise directly.

Growth Objectives – The needed and desired performance results to be reached by means outside the present products and markets. Objectives are identified by a direct translation of business goals from the growth strategy. The growth objectives guide decision making so a firm can reduce the gap between the forecasts of profit contributions of present products and markets from the overall objectives.

Growth Stage of Product Life Cycle – The second stage of the product life cycle, during which sales are increasing at an increasing rate, profits are increasing, and competitors enter the market. Product differentiation takes place, and price competition begins. Industry profits usually taper off as the product category enters the third (mature) stage, during which sales increases come only at a declining rate and eventually cease.

Growth Strategy – Market share expansion is the prime objective under this strategy, even at the expense of short earnings. The firm may seek to expand market share through a number of alternative routes. First, the firm may seek new users who may previously have been loyal to other brands, or tended to switch, or were not users of category at all. The second way in which the firm can expand usage by current users: for instance, by identifying and promoting new uses.

Growth-Share Matrix – Each business or product in this portfolio matrix is classified jointly by the rate of present or forecast market share dominance. The Boston Consulting Group (BCG), which developed this model, choose market growth as an indicator of the need for cash while relative market share is an indicator of profitability and cash generating ability. Businesses are classified into one of the four quadrants, and labeled according to their cash flow characteristics. These quadrants include cash cow: likely to be profitable and net cash generators, as low growth demands less cash and the business is relatively profitable; star: strong market share position, but in a rapidly growing market; profitable, but likely to be net cash user; problem child(question mark): have a large appetite for cash; dog: small relative share in low growth market, generates moderate amount of cash, but uses most if not all the cash generated in maintaining operations and share position.

Guarantee – The assurance, expressed or implied, of the quality of goods offered for sale. Expressed guarantee, with definite promise of money back or other specific assurance, is often used as a sales aid, especially in nonstore retailing.

Guttman Scale – A general procedure to determine whether or not the responses of subjects to a set of items from a scale. If the items form a sale, only a limited number of response patterns are possible, and relative nonoccurrence of deviant patterns allows the recovery of the order of the individuals and category boundaries of the items from the observed data.

Habit – A learned response to a stimulus that has become automatic and routine, requiring little or no cognitive effort.

Habit Formation – The process of learning specific behavior often requiring practice or rehearsal of the response. There is considerable controversy, however, on just how much repetition or how many trials are necessary for learning to occur. It probably differs between cognitive problem solving and simple physiological or muscular reactions.

Habitual Decision Making – The choices or decisions made out of “habit” without much deliberation or product comparison.

Halo Effect – A problem that arises in data collection when there is carry-over from one judgment to another.

Hand Marking – The use of grease pencils, ink stamps, and pens to directly mark, package, label, tag, or ticket merchandise.

Hand-to-Mouth Buying – The purchase by a business in the smallest feasible quantities for immediate requirements.

Handbill – The term commonly used to identify a promotion piece that is either handed out to shoppers at the store or distributed door-to-door by a messenger.

Hard Goods – As compared with soft goods, which have a textile base, these goods mainly comprise hardware, home furnishings, and furniture and appliances. These goods are usually also durable goods.

Harvesting Strategy – The maximization of short-run cash flow from a business in expectation of a deterioration of market share and eventual withdrawal from the market. The cash flow raised is directed toward other areas of business where it is needed.

Headline – The part of the written component of print advertising that is meant to help attract the reader’s attention to the ad.

Health Care Marketing – Marketing designed to influence the behavior of target audiences in which the benefits would accrue to the target audience’ physical and/or mental health. Comment: Health care marketing may be carried out by individuals, by hospitals or clinics, or by national agencies such as the National Cancer Institute.

Heavy Equipment – Products that are typically capital goods, normally purchased by end user customers.They are treated as an asset by the purchasing firm and depreciated for tax purposes. Examples are lathes, drilling machines and grinders.

Hedging – The sale or purchase of a currency in forward markets for future delivery to satisfy a future obligation or obtain a future payment. The purpose of hedging is to reduce risks.

Hedonistic Consumption – A focus on the sensory pleasures or hedonic benefits provided by interaction with products or services.

Hendry Model – A model representing the amount of switching among the brands in a product category. The model postulates that, for directly competing brands (i.e., brands within the same market partition), the level of the switching among those brands should be proportional to the product of their market shares. The exact level of switching (e.i. the proportionality constant) is assumed to be the value of that maximizes the entropy (i.e., randomness or lack of information)in this probabilistic system.

Heuristic -1. (consumer behavior definition) A proposition that connects an event with an action. Heuristics usually simplify decision making. For example, “buy the cheapest brand” is a choice heuristic that would simplify purchase. 2. (consumer behavior definition) The simplified “rules of thumb” by which decisions are made.

Hierarchical Organization – A classic form of organization which, during the 19th century, was adapted by business from centuries-old religious and military organizations. In this type of organization, authority flows from the person in charge through various levels of supervision (called “chain of command” by the military). Conversely, information and requests for guidance and decision travel upward through the same channels. Few, if any, modern business organization follow this strict organizational structure. Rather, they delegate much decision making to lower levels of management. When top management needs to be involved, modern techniques for information processing enable top and lower levels of management to communicate quickly. Decisions are often made during discussions via telecommunications. Comment: Some business media continue to describe business organizations as if they are operated in the outdated classical hierarchical manner. It is true that business organization charts often follow the hierarchical pyramid design even though they operate in the less formal manner described above. The formal organization chart shows the corporate management structure that is responsible to government and stockholders for fiduciary, fiscal, and legal requirements. The line of authority from the top down enables top management to ensure that its legal and ethical policies are promulgated and followed.

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