Dictionary

Whether you're looking for an obscure phrase or your basic marketing definition, the AMA Dictionary has it all! Originating from the print version in 1995, we're always adding new terms to keep marketers up to date in the ever-evolving marketing profession.

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Term
Definition
See Also
NAAG
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NAD
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NAFTA
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naive theory of causality
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Naked Links
A posted and visible link in the text of a web page that directs to a web site. Source: SEMPO
NARB
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narrow class
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  • product class
  • Nash Equilibrium
    Refer to "See Also" column to the right.
    national account
    A prospect or customer with locations in several sales territories that are sold, using a coordinated national strategy rather than strategies that focus on specific locations. A national account with an international scope is referred to as a global account.
    national account manager
    An account executive responsible for coordinating the sales effort directed toward a national account.
    national advertising
    Any advertising that is placed by a company, organization, or individual that operates on a national or regional (multistate) basis. Some of the advertising may be placed directly with local advertising media, but it is likely that this advertising would be part of the nationwide advertising effort of the company, organization, or individual.
    National Advertising Division (NAD)
    A division of the Council of Better Business Bureaus that assists advertisers in resolving disputes about the content of advertising messages. The NAD serves as a third party that can help resolve complaints by advertisers and members of the public. If complaints are not resolved by the NAD staff members they are referred to the National Advertising Review Board.
    National Advertising Review Board (NARB)
    A group of advertising industry executives, advertising executives from corporations, and members of the public who work in conjunction with the National Advertising Division of the Council of Better Business Bureaus. Members of this board attempt to resolve complaints forwarded to the board by the staff of the National Advertising Division.
    National Association of Attorneys General (NAAG)
    An organization formed by the attorneys general of all fifty states and five territories in an effort to coordinate their activities and provide some uniformity in regulatory control. NAAG has no law enforcement authority, but can express the opinions of its members, adopt policy resolutions, and participate in litigation.
    national brand
    A brand that is marketed throughout a national market. It contrasts with regional brand and local brand. It usually is advertised and usually is owned by a manufacturer, though neither is necessary for the definition because Kmart's brands, for example, are obviously national, even international.
    national character
    The values, beliefs, and personality characteristics that describe the people of a country in general terms.
    National Environmental Policy Act (NEPA) (1969)
    The act in which Congress applied at the national level an across-the-board policy of environmental protection for the federal government and all its agencies. Environmental quality under the NEPA has become a major factor in agency decision making.
    national income (NI)
    1. (environments definition) The aggregate of labor and property earnings from the current production of goods and services. It comprises employee compensation, proprietors' income, rental income, profits, and net interest. 2. (economic definition) The sum of money incomes that individuals and firms receive for supplying units of the productive agents during a given period. It is equal to net national product less indirect business taxes, business transfer payments, and current surpluses of government enterprises plus government subsidies to business firms.
    national rate
    The price charged national advertisers for space and time in local advertising media. Traditionally, newspapers, radio, and television stations have charged higher rates for national advertising than for local advertising.
    nationalism
    A national spirit that emphasizes the interests of one's own nation above all else.
    natural environment
    The physical forces in nature including climate, weather, and natural resources that affect a firm's market or its ability to carry out it marketing activities.
    natural selection theory
    A theory of retail institutional change that states that retailing institutions that can most effectively adapt to environmental changes are the ones most likely to prosper or survive.
    navigation
    Elements of a Web site that facilitate movement from one page to another.
    NBD model
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    near line extension
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  • line extension
  • near-pack premium
    A gift or other item generally too large to be included with or in the product package that is offered as an inducement to purchase. Commonly, the premium is placed near the product's in-store location.
    need
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  • cognition
  • need definition
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    need description
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    need payoff
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  • SPIN
  • need recognition
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    need satisfaction selling
    A type of customized sales presentation in which the salesperson first identifies the prospective customer's needs and then tries to offer a solution that satisfies those needs.
    needs and wants
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  • motivation
  • negative advertising
    The use of advertising messages that concentrate on pointing out undesirable aspects of competing products, services, organizations, or ideas. This technique is frequently used in political advertising to attack opposing politicians and political ideas.
    negative appeal
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    negative authorization
    A verification system in which only poor credit risks are noted in the credit check. Any credit not negatively reported is assumed to be verified.
    Negative Binomial Distribution (NBD) model
    A probability mixture model representing the frequency and timing of product purchases, primarily applied to frequently purchased consumer goods. It assumes that sequential purchases made by an individual occur randomly in time, and also assumes that purchase rates have a gamma distribution across individuals (Ehrenberg 1972; Greene 1982). With these two assumptions the distribution for the number of purchases made by a randomly chosen set of customers in a fixed time period has the negative binomial distribution. The model can be used to predict future purchase patterns for customers with a given purchase history (Morrison and Schmittlein 1981).
    negative disconfirmation
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  • disconfirmation
  • Negative Keywords
    Filtered-out keywords to prevent ad serves on them in order to avoid irrelevant click-through charges on, for example, products that you do not sell, or to refine and narrow the targeting of your Ad Group?s keywords. Microsoft adCenter calls them "excluded keywords." Formatting negative keywords varies by search engine; but they are usually designated with a minus sign. Source: SEMPO
    negative reference group
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  • reference group
  • negative valance
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  • attitude
  • negligence
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    negotiation
    The process of trying to find mutually agreeable terms in an exchange situation. Negotiation leads either to mutually acceptable terms (agreement) or a decision not to transact (disagreement).
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  • channel flows
  • neighborhood shopping center
    1. (geography definition) The smallest type of shopping center, comprising 30,000 to 100,000 square feet. It provides for the sale of convenience goods (food, drugs, and sundries) and personal services that meet the daily needs of an immediate neighborhood trade area. A supermarket is the principal tenant. 2. (retailing definition) One of several standard classes of shopping centers recognized by the Urban Land Institute. The neighborhood shopping center provides for the sale of convenience goods and personal services. It typically has about 50,000 square feet of store area but ranges from about 30,000 square feet to 100,000 square feet.
    NEPA
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    nested logit model
    A probabilistic model for representing the discrete choice/behavior of individuals. On any choice occasion the individual is assumed to behave as though choice alternatives were considered in a hierarchical manner. At each stage of the hierarchy the choice to eliminate a set of items from consideration is made according to the logit model (McFadden 1986). The nested logit model arises as a random utility model in which the random component of utility has the generalized extreme value distribution. Guandagni (1983) used this model to represent jointly brand choice and purchase incidence decisions, and Dubin (1986) employed the model to represent consumers' choice of home water heating fuel (gas, oil, or electricity) given the type of space heating system in the home.
    net audience
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  • reach
  • net investment
    Gross investment minus allowances for capital consumption.
    net markdown
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    net national product (NNP)
    Gross national product less capital consumption allowance, i.e., depreciation on capital goods plus capital goods destroyed or damaged plus depreciation on minor capital goods.
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  • national income
  • net present value
    The methodology used to develop the actual value calculation. It helps express the long-term value of customer relationships.
    net profit
    Net profit or net incomes a measure of the profitability of a venture after accounting for all costs. Source: The MASB Common Language Project. http://www.themasb.org/common-language-project/ http://en.wikipedia.org/wiki/Net_profit
    net reach
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  • reach
  • net terms
    Terms calling for the billed amount of the invoice. No cash discount is allowed.
    net unduplicated audience
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  • reach
  • netiquette
    Short for network etiquette, the code of conduct regarding acceptable online behavior.
    network broadcast
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  • spot broadcast
  • network effect
    The phenomenon whereby a service becomes more valuable as more people use it, thereby encouraging ever-increasing numbers of adopters.
    neutral stimulus
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    never-out list
    Key items or best sellers listed separately from a model stock plan or basic stock list, or that are especially identified on the basic stock list by colored stars or other suitable means. It is sometimes referred to as a list of key items, checking-list item, or best-seller list.
    new package introduction
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    new product committee
    Made up of high level executives, the committee sets new product policies, establishes priorities, reviews progress, eliminates logjams, decides whether to abandon or commercialize a new product, and provides impetus to the overall new product program. Members typically include the chief executive, director of the new products department, and the managers of major functional departments. Comment: Usually the new product committee will be in addition to one or more other forms of new product organization listed under new product organization, forms of. While the committee does not actually manage the new product program, it serves to spotlight the performance of the committee members whose departments are responsible for carrying out parts of new product development projects.
    new product development
    The overall process of strategy, organization, concept generation, concept and marketing plan evaluation, and commercialization of a new product. It occasionally is restricted in meaning to that part of the process done by technical (research and development) departments. New product development concerns activity within an organization, in contrast to the acquisition of finished new products from outside.
    new product director
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    new product failure
    A new product that does not meet the objectives of its developers. Depending on what those objectives are, a profitable new product can be a failure, and an unprofitable new product can be a success.
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  • abandonment
  • new product forecasting models
    These models for forecasting the performance (e.g., trial, repeat, sales, share) of new products and services include three major types of models: 1) those based on management subjective estimates; 2) those based on analogy to a similar product that had been previously introduced to the market; and 3) those based on consumer studies. There are four types of consumer based models: 1) concept testbased forecasting models, including models such as POSSE; 2) pretest market-based models, especially those categorized as simulated test market models such as LITMUS; 3) test market-based forecasting models such as NEWS and Tracker; and 4) early sales-based forecasting models, which include the various diffusion models. For a review of these models, see Wind, Mahajan, and Cardozo (1981).
    new product introduction
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    new product manager
    This manager is responsible for identifying new product needs, developing new product concepts, and testing the concepts with groups of consumers before turning to research and development for technical development. If a satisfactory product evolves from research and development, the new product manager arranges for consumer product and package testing; and, if these are successful, prepares market introduction plans. When ready for commercialization the new product usually is assigned to a product manager or category manager. The new product manager reports to the marketing manager or division manager. This position is most likely to be found in consumer packaged goods companies producing low technology products.
    new product organization, forms of
    New product organization provides for the planning, scheduling, coordination, and control of the new product process from idea to commercialization (or abandonment along the way), as well as getting participation from the internal functional departments and external agencies that must do the work. Comment: Internal participation is required of top management (corporate and/or divisional), major functional departments such as marketing, research and development, production, engineering, finance, and physical distribution (logistics). External participation may involve, for example, advertising agencies, industrial design firms, independent laboratories, market research agencies, new product consultants, and new product development companies.
    new product strategy
    The goals a product is expected to achieve in a market. A product's strategy supports and complements the overall marketing strategy. Some products are used to introduce or pioneer new technologies while others are expected to balance current market offerings in terms of product price, product format, style, and features.
    new products department
    This department is responsible for planning and coordinating the new product program for the company. The director has the functional authority to obtain the participation of other company departments and the line authority to hire outside agencies as needed. The director may have a staff of market research and technical people for conducting preliminary investigations before deciding to involve functional departments in full scale development. The director reports to the corporate chief executive. This provides an avenue for the chief executive to be directly involved in the new product program and provides the director with top management backing when needed to get action from functional managers.
    new task purchase
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    newly married stage
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    NEWS
    A model used to predict the level of awareness-trial-repeat purchase, and market share over time for a new frequently purchased consumer product. It considers explicitly the effect of advertising and promotion on brand awareness and product trial, and also incorporates the effect of the level of distribution on trial and repeat purchases. For any particular new product, the model's parameters can be calibrated either using pretest market data (i.e., a telephone survey, advertising copy test, concept test, and in-home product-use test) in the NEWS/Planner version, or using test market data in the NEWS/Market version (Pringle, Wilson, and Brody 1982).
    news clip
    A type of film presentation in which editorial content is controlled by the sponsor. It is provided to broadcast media for their use as deemed appropriate.
    news peg
    The main point of a news release that justifies the value of using the story to the media. A news peg should indicate how the story material will affect the media audience.
    news release
    Information of timely value distributed by an organization to promote its views or product/services.
    news story
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    newsletter
    A brief digest of important or noteworthy information. A newsletter may be developed by individuals for sale or distributed free by associations, professional societies, and companies as a method of reaching various publics quickly.
    newspaper distributed magazine
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  • supplement
  • NEXIS
    A database service that includes over 200 full-text sources. It is used by public relations firms to track publicity for their own and competitors' products and services.
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  • LEXIS
  • NGO
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    NI
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  • national income
  • niche strategy
    A game plan employed by a firm that specializes in serving particular market segments in order to avoid clashing with the major competitors in the market. "Nichers" pursue market segments that are of sufficient size to be profitable while at the same time are of less interest to the major competitors.
    nine-block matrix
    Refer to "See Also" column to the right.
    NNP
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    No Follow
    NoFollow is an attribute webmasters can place on links that tell search engines not to count the link as a vote or not to send any trust to that site. Search engines will follow the link, yet it will not influence search results. NoFollows can be added to any link with this code: ?rel="nofollow"." Source: SEMPO
    No Frames Tag
    A tag used to describe the content of a frame to a user or engine which had trouble displaying / reading frames. Frequently misused and often referred to as "Poor mans cloaking". Source: SEMPO
    No Script Tag
    The noscript element is used to define an alternate content (text) if a script is NOT executed. This tag is used for browsers that recognizes the
    nominal credit terms
    The terms applied to the date on which full payment of the account is due. For vendors that bill customers on a monthly basis, full payment is usually due by the tenth day after billing.
    nominal scale
    A measurement in which numbers are assigned to attributes of objects or classes of objects solely for the purpose of identifying the objects. (See also comparative rating scale, con-stant sum method, graphic-rating scale, Guttman scale, interval scale, itemized rating scale, ordinal scale, ratio scale, Stapel scale, and sum-mated rating.)
    non commercialized product concept statement
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    non tariff barriers (NTBs)
    1. The ongoing administrative, discriminatory, and ad hoc safeguard actions and practices to protect home industries. Typical NTBs include exclusion orders, standards (requiring, for example, that products admitted to the country meet exact specifications that either cannot be met in the case of some natural products or that are very expensive to meet in case of manufactured products), exclusionary distribution, and administrative delays (for example, when the French decided that the imports of Japanese VCRs were excessive, they simply applied the rules and gave each VCR a complete inspection. The number of VCRs entering the country dropped from thousands to six per day). 2. Any measure, public or private, that causes internationally traded goods and services to be allocated in such a way as to reduce potential real world income.
    nonbusiness marketing organization
    Nonbusiness entities are usually non-profit institutions that can and do borrow marketing methods and organization structures from business. There is growing acceptance of the concept that nonprofit institutions, as well as for-profit businesses, serve markets (i.e., customers) and that their success depends on how well they understand and cater to the needs and wants of these markets. Nonbusiness organizations often set marketing goals that are similar to those of business except for the absence of the profit goal. Examples drawn from nonprofit colleges and hospitals and from military organizations will illustrate this point. A major marketing goal of a nonprofit college or hospital is to bring in the income needed to operate the institution. A supportive marketing goal is to attract the number of college students or hospital patients that will fully utilize the institution's facilities. Another supportive marketing goal is to raise specific amounts of money from contributors for capital projects. A military organization is funded by the government and does not raise money. A major marketing goal of the military is to meet recruiting quotas in terms of the quantity and quality of personnel needed to perform its mission. Like companies, nonbusiness institutions can use marketing functions to help in setting their goals such as market research, personal selling, advertising, sales promotion, and product planning and development. Comment: Some nonbusiness organizations are reluctant to use marketing terms for fear of appearing too commercial, although the term marketing is often used. But a salesperson may be called "college representative"; advertising may be called "communications."
    noncoercive influence strategy
    A means of communication that focuses on the beliefs and attitudes of the target about general business issues.
    noncompensatory rules
    In evaluating alternatives, noncompensatory rules suggest that positive and negative consequences of alternatives do not compensate for each other. The types of noncompensatory rules include the conjunctive rule, the disjunctive rule, and the lexicographic rule. The conjunctive rules suggests that consumers establish a minimum acceptable level for each choice criterion and accept an alternative only if it equals or exceeds the minimum cutoff level for every criterion. The disjunctive rule suggests that consumers establish acceptable standards for each criterion and accept an alternative if it exceeds the standard on at least one criterion. The lexicographic rule suggests that consumers rank choice criteria from most to least important and choose the best alternative on the most important criterion.
    noncooperative game theory
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    noncoverage error
    A nonsampling error that arises because of a failure to include some units, or entire sections, of the defined survey population in the actual sampling frame.
    noncumulative quantity discount
    A discount granted for volume purchased (measured either in units or dollars) at a single point in time.
    nondurable good
    A good that is (1) made from materials other than metals, hard plastics, and wood, (2) is rather quickly consumed or worn out, or (3) becomes dated, unfashionable, or in some other way no longer popular. This is an awkward term that includes a highly varied set of goods and is useful primarily as a contrast with durable goods.
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  • soft goods
  • nongovernmental organization (NGO)
    An organization that is not a governmental agency seeking solutions to social problems.
    nonlinear model
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    nonlinear programming
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    nonmonetary transaction
    A marketing exchange in which the costs paid by the target audience do not include a transfer of economic assets.
    nonobservation error
    A nonsampling error that arises because of nonresponse from some elements designated for inclusion in the sample.
    nonprice competition
    The act of vying for sales through better products, promotion, service, and convenience with only minor emphasis on price.
    non-price competition
    The competition among firms on the basis of variables other than price, such as quality, brand, assortment, or services. It implies that a company can influence demand by its marketing activities.
    nonprobability sample
    A sample that relies on personal judgment somewhere in the element selection process and therefore prohibits estimating the probability that any population element will be included in the sample.
    nonprofit marketer
    An individual or organization conducting nonprofit marketing.
    nonprofit marketing
    The marketing of a product or service in which the offer itself is not intended to make a monetary profit for the marketer. Comment: Nonprofit marketing may be carried out by any organization or individual and may or may not be designed to have a positive social impact. A nonprofit marketer may undertake specific ventures that are for-profit, as when a museum markets reproductions or offers food and beverages at a profit; however, its overall objective does not involve making profit. A nonprofit marketer may be incorporated privately or may be a governmental (public) agency.
    nonprofit organization
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    nonresponse error
    A nonsampling error that represents a failure to obtain information from some elements of the population that were selected and designated for the sample.
    nonsampling error
    An error that arises in research that is not due to sampling; nonsampling error can occur because of errors in conception, logic, misinterpretation of replies, statistics, arithmetic, and errors in tabulating or coding, or in reporting the results.
    nonselling area
    The floor space, other than selling area, used in the conduct of business in a store building or in remote service or warehouse buildings, including entrances, show windows, vertical transportation facilities, offices, air conditioning systems, alteration rooms, workrooms, repair shops, receiving and marking rooms, and stockrooms.
    nonselling department
    Any department of a store engaged in work other than direct selling of merchandise e.g., receiving department.
    non-signer clause
    The news release is used to influence the media to communicate favorably about the material discussed.
    nonstore retailing
    A form of retailing in which consumer contact occurs outside the confines of the retail store, such as vending machines and electronic shopping, at home personal selling, and catalog buying.
    nonverbal communications
    The nonspoken forms of expression communicating thought and emotions including body language, space between the communicators, speech, and appearance.
    norms
    The rules of behavior that are part of the ideology of the group. Norms tend to reflect the values of the group and specify those actions that are proper and those that are inappropriate, as well as the rewards for adherence and the punishment for nonconformity.
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  • culture
  • mores
  • North American Free Trade Agreement (NAFTA)
    An agreement between the U.S., Canada, and Mexico to remove barriers to the movement of goods and service.
    not-at-home
    A source of nonsampling error that arises when replies are not secured from some designated sampling units because the respondents are not at home when the interviewer calls.
    NPV
    Refer to "See Also" column to the right.
    NTBs
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    Nutrition Labeling and Education Act (1990)
    A federal act that seeks to make nutrition information more precise and understandable.