Glossary of marketing terms Absolute advantage

Passive exporter. An organisation which awaits orders or comes across them by choice.

Penetration price. The charging of a low price in order to gain volume sales conducted under conditions of little product uniqueness and elastic demand patterns.

Physical distribution. The act and functions of physically distributing goods and services including the elements of transport, warehousing and order processing.

Polycentrism. A host country orientation on a subsidiary basis.

Price ceiling. The maximum price which can be charged bearing in mind competition and what the market can bear.