Index of Retail Saturation – A technique normally used in larger areas to aid retailer’s choice among possibilities for location of new outlets. It offers better insight into location possibilities than a simple descriptive analysis of market potential because it reflects both the demand side and the supply side; i.e., the number of existing outlets in the area and the number and/or income of consumers.
Indirect Channel -A channel whereby goods and services are sold indirectly from producer through independent middlemen to final users.
Indirect Denial – A method used by salespeople to respond to prospect objection but attempting to soften the response by first agreeing that the issue raised in the objection is important.
Indirect Exporting – Sales to export intermediaries who in turn sell to overseas customers. The indirect exporter has no direct contact with overseas customer.
Indirect Traceable Costs – Cost that are not incurred solely for a particular activity but, through reasonably objective means, can be traced, in part, to the activity for which they are incurred.
Individual Brand – The brand identity given to an individual product, as separate from other products in the market and for other items in the product’s own line. A trademark.
Industrial Distributor – A wholesaler who sells primarily to business or institutional customers who purchase items for business use rather than for resale.
Industrial Market – The industrial market (also called the product market or business market) is the set of all individuals and organizations that acquire goods and services that enter into the production of other products or services that are sold, rented, or supplied to others. The major types of industries making up the industrial market (business market) are agriculture, forestry, and fisheries; mining; manufacturing; construction and transportation; communication and public utilities; banking, finance and insurance; and services.
Industrial Market Segmentation – The process of separating an industrial market (business market) into groups of customers or prospects such that the members of each resulting group are more like the other members of that group than they are like members of other segments.
Industrial Marketing – The marketing of goods and services to industrial markets (business markets).
Industrial Products – Goods that are destined to be sold primarily for use in producing other goods or rendering services as contrasted with goods destined to be sold primarily to the ultimate consumer. They include accessory equipment; installations; component parts; maintenance, repair, and operating items and supplies; raw materials; and fabricating materials. The distinguishing characteristic of industrial goods is the purpose for which they are are to be used, i.e., in carrying on business or industrial activities rather than for consumption by individual ultimate consumers or resale to them. The category also includes merchandise destined for use in carrying on various types of institutional enterprises. Relatively few goods are exclusively industrial products. The same article may, under one set of circumstances, be an industrial good, and under other conditions, a consumer good.
Industrial Sales Person – A salesperson who is primarily responsible for making sales of goods and services to businesses and institutions such as hospitals.
Industry – A set of companies that vie for market share of a given product.
Inelastic Demand – 1. A situation in which the quantity offered to the market increases less than proportionately to an increase in price. 2. A situation in which the percentage of goods offered to the market “stretches” less than the percentage increase in price.
Infant Industry – An industry that justifies a national policy of protection from global competition on the grounds that it needs time to get established. Infant industry protection is always temporary.
Inferences – The beliefs consumers form to represent relationships that are not explicit in the environment; inferences are largely influenced by prior knowledge in memory.
Inferior Goods – The less expensive substitutes for products that consumers prefer.
Inflation 1. (economic definition) An economic condition characterized by a continuous upward movement of the general price level. 2. (global marketing definition) An increase in prices in a country that results in a decline in the purchasing power of consumers.
Influence, Interpersonal, in the Buying Center – The influence of one individual member of the buying center on another is the change in behavioral and/or psychological states of other buying center members brought about by the perception of each others power in an organizational buying situation.
Influence Strategy – A means of communication used by a channel member’s personnel in applying its power in specific channel relationships.
Infomercial – The use of a program length time period to advertise products and services. This approach often includes a direct response offer to sell the advertised items directly to the public.
Informal Group – The interpersonal and intergroup relationships that develop withing a formal group or organization. This might include cliques, “coffee colleagues” or friendship circles. An informal group tends to form when the formal organization fails to satisfy important needs of the members.
Information Control – A term applied to studies using questionnaires and concerning the amount and accuracy of the information that cab be obtained from respondents.
Information Search – 1. (industrial definition) The process by which a buyer seeks to identify the most appropriate supplier(s) once a need has been recognized. The information search process may vary based upon variables such as organizational size and buying situation. 2. (consumer behavior definition) Intentional exposure to information. Before buying a camera for example, the consumer might be attracted to and seek out advertisements for cameras, read articles in photography magazines, and turn to Consumer’ Reports. Seeking the advice of an expert, knowledgeable acquaintance, or salesperson can be involved.
Informational Advertising – Advertising that presents factual, usually verifiable, information about the product or product usage.
Infrastructure – A nation’s systems, facilities, and installations such as road and highway networks for transportation and distribution.
Initial Markup – The difference between the merchandise cost and original retail price placed on the goods; expressed as a percentage of the retail value.
Initiating Structure – A leadership style wherein sales managers closely direct their sales personnel; clarify their roles for them; and plan, coordinate, problem solve, criticize, and pressure them to perform. A sales manager using this leadership style tends to exhibit task-oriented behavior. a