Published on March 20, 2014
Powered By – Rubayet Hassan Term Description Above the line “Above the Line” is the term commonly used for advertising for which a payment is made and for which commission is paid to the advertising agency. Methods of above the line advertising include television and radio, magazines, newspapers and Internet. ACORN ACORN stands for “A Classification Of Residential Neighborhoods”. ACORN is a database which divides up the entire UK population in terms of the type of housing in which they live. This can be used for various purposes in marketing planning and in designing promotional campaigns Ad hoc market research Ad-hoc research focuses on specific marketing problems. It involves the collection of data at one point in time from one sample of respondents Added value Added value refers to the increase in worth of a product or service as a result of a particular activity. In the context of marketing, the added value is provided by features and benefits over and above those representing the “core product”. Advertising Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor. Advertising budget The total amount of money that a marketer allocates for advertising over a period of time After-sales service The services received after the original goods or services have been paid for. Often this service is provided as part of a warranty or guarantee scheme. Agent Part of the distribution channel. An agent is effectively a wholesaler who represents buyers and sellers on a relatively permanent basis, performs only a few functions and does not take title to goods Ambush marketing A deliberate attempt by a business or brand to associate itself with an event (often a sporting event) in order to gain some of the benefits associated with being an official sponsor without incurring the costs of sponsorship. For example by advertising during television coverage of the event. Ans. off matrix A model used in strategic marketing planning. The Ansoff Product/Market matrix model links marketing strategy with the general strategic direction of a business. It maps four potential product-market strategies - e.g. market penetration, product development, market development and diversification - on a matrix showing new versus existing products along one axis and new versus existing markets along the other. Augmented brand The additional customer services and benefits (“added value”) that are built around the core product or service offering Available market The total group of customers who have an interest in a interest in a product or service, have access to it, and have the ability to buy it Awareness Advertising or other promotional activity (e.g. public relations) whose primary purpose is to increases general knowledge of the company, and to make people feel more positive towards it
Behavioural segmentation Behavioural segmentation divides customers into groups based on the way they respond to, use or know of a product. Below the line “Below the line” is a term commonly used to refer to non-media advertising or promotion when no commission has been paid to the advertising agency. This includes direct mail, point of sale displays, and other sales promotions. Benchmarking The process of comparing the products and services of a business against those of competitors in a market, or leading businesses in other markets, in order to find ways of improving quality and performance Benefit segmentation Benefit segmentation relates to the process of dividing a market based on the specific benefits consumers seek from a product. For example, some car buyers want safety and security from their car, while others look for comfort or speed. A car manufacturer, therefore, has to decide which benefits to offer – and how these benefits should be communicated to the customer Boston Group Matrix A means of analysing and categorizing the performance of business units in large diversified firms by reference to market share and growth rates. It was developed by the Boston Consultancy Group (BCG) Brand A brand is the specific type of the product form. A brand – represented by a brand name, symbol, design, logo, packaging – is the identity of a particular product form that customers recognise as being different from others. Brand building Developing a brand's image and standing with a view to creating long term benefits for brand awareness and brand value Brand equity Brand equity refers to the value of a brand. Brand equity is based on the extent to which the brand has high brand loyalty, name awareness, perceived quality and strong product associations. Brand equity also includes other “intangible” assets such as patents, trademarks and channel relationships. Brand extension Brand extension refers to the use of a successful brand name to launch a new or modified product in a new market. Virgin is perhaps the best example of how brand extension can be applied into quite diverse and distinct markets. Brand image Brand image refers to the set of beliefs that customers hold about a particular brand. These are important to develop well since a negative brand image can be very difficult to shake off. Brand loyalty A strongly motivated and long standing decision to purchase a particular product or service Brand recognition A customer's awareness that a brand exists and is an alternative to purchase Breakeven Breakeven is achieved when total contribution is equal to total fixed costs. Addition contribution earned after this point becomes profit Break-even pricing Setting a price to achieve break-even on the costs of making and marketing a product (direct costs). Breakeven is achieved when the total contribution from sales priced in this way at least equal the fixed costs of the business
Build share A strategy based on the Boston Matrix. Here the company can invest to increase market share (for example turning a "question mark" into a star) Business portfolio The business portfolio is the collection of businesses and products that make up the business. Business to business Marketing activity directed from one business to another (as opposed to a consumer). This term is often shortened to “B2B” Buying behaviour Buying behaviour concerns the process that buyers go through when deciding whether or not to purchase goods or services. Buying behaviour can be influenced by a variety of external factors and motivations, including marketing activity. Cash Cows A term used in the Boston Group Matrix. Cash cows are low-growth businesses or products with a relatively high market share. These are mature, successful businesses with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars. Channel conflict Disagreement among members of a distribution channel about who should be paid what and what roles each should play. Channel conflict often occurs when a business uses a multi-channel approach to distribution Cognitive dissonance Cognitive dissonance is an customer effect commonly observed after a major purchase whereby the customer feels uncertainty about whether the purchase should have been made. Post-purchase promotion (particularly advertising) has a role to play to reduce the incidence and effect of cognitive dissonance Combination brand A combination brand name brings together a family brand name and an individual brand name. The idea here is to provide some association for the product with a strong family brand name but maintaining some distinctiveness so that customers know what they are getting Competitive advantage A competitive advantage is a clear performance differential over the competition on factors that are important to customers Competitor benchmarking Competitor benchmarking compares customer satisfaction with the products, services and relationships of the business with those of key competitors Consumer buyers Consumer buyers are those who purchase items for their personal consumption Consumer durables Consumer durables have low volume but high unit value. Consumer durables are often further divided into White goods (e.g. fridgefreezers; cookers; dishwashers; microwaves) and Brown goods (e.g. DVD players; games consoles; personal computers) Consumer markets Consumer markets are the markets for products and services bought by individuals for their own or family use Continuous market research Continuous research involves interviewing the same sample of people, repeatedly
Contribution Contribution per unit can be defined as selling price less variable costs. Overall contribution is the difference between total sales revenues and variable costs Core product The set of problem-solving or need-meeting benefits that customers are buying when they purchase a product. Customers are rarely prepared to pay a premium for these elements of a product. Cost leadership A strategy of producing goods at a lower cost than the competition. This usually requires the business to enjoy higher economies of scale or have some kind of productivity advantage Cross-selling Using a customer’s buying history to select them for related offers, e.g. a car alarm for new car buyers. Customer demand Consumer demand is a want for a specific product supported by an ability and willingness to pay for it. Customer loyalty Feelings or attitudes that incline a customer either to return to a company, shop or outlet to purchase there again, or else to re-purchase a particular product, service or brand. Customer need A need is a basic requirement that an individual wishes to satisfy. Customer satisfaction The provision of goods or services which fulfil the customer’s expectations in terms of quality and service, in relation to price paid Customer wants A want is a desire for a specific product or service to satisfy the underlying need. Decline stage The last stage of a product's life cycle, during which sales fall rapidly Demographic segmentation Demographic segmentation consists of dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality Depth interview A lengthy, one-to-one structured interview, examining in detail a consumer's views about a product Differentiation A marketing strategy aimed at ensuring that products and services have a unique element to allow them to stand out from the rest Direct mail The delivery of an advertising or promotional message to customers or potential customers by mail. Direct marketing The planned recording, analysis and tracking of customer behaviour to develop a relational marketing strategies Direct response advertising Direct response advertising is that which incorporates a contact method such as a phone number, address and enquiry form, web site URL or email address. This is done with the intention of encouraging the recipient to respond directly to the advertiser by requesting more information, placing an order etc. The use of this technique on television is commonly referred to as DRTV advertising Distribution channel The network of organisations necessary to distribute goods or services from the manufacturers to the consumers; the distribution channel therefore potentially consists of manufacturers, distributors, wholesalers, and retailers.
Distributors Companies that buy and sell on their own account but tend to deal in the goods of only certain specified manufacturers. Divest A strategy based on the Boston Matrix. Here the company can divest the SBU by phasing it out or selling it - in order to use the resources elsewhere (e.g. investing in the more promising "question marks"). Dogs A term used in the Boston Group Matrix. Unsurprisingly, the term "dogs" refers to businesses or products that have low relative share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in. Early adopters People who choose new products carefully and are often consulted by people from the remaining adopter categories Early majority People who adopt products just prior to the average person E-commerce The use of technologies such as the Internet, electronic data exchange and industry extranets to streamline business transactions Endorsement The promotion of some kind of product recommendation or affirmation, usually from a celebrity, implying to the potential customer that a product is good Expansionistic pricing Expansionistic pricing is a more exaggerated form of penetration pricing and involves setting very low prices aimed at establishing mass markets, possibly at the expense of other suppliers. Under this strategy, the product enjoys a high price elasticity of demand so that the adoption of a low price leads to significant increases in sales volumes Extinction pricing Extinction pricing has the overall objective of eliminating competition, and involves setting very low prices in the short term in order to ‘undercut’ competition, or alternatively repel potential new entrants. Family brand name A family brand name is used for all products. By building customer trust and loyalty to the family brand name, all products that use the brand can benefit. Family life cycle The stages of family life based on demographic data that are useful in defining the markets for certain goods and services. Each group has its own specific and distinguishable needs and interests. Fast-moving consumer goods Fast-moving consumer goods are those that sell in high volumes, with low unit value, and have fast consumer repurchase. Good examples include ready meals, baked beans, newspapers etc Focus group A small group of sample customers who are brought together into a group discussion to measure their response to a marketing stimulus such as a new brand or product Forecasting The process of estimating future demand by anticipating what buyers are likely to do under a given set of marketing conditions (e.g. economic confidence, disposal income, pricing levels) Franchising The selling of a licence by the owner (franchisor) to a third party (franchisee) permitting the sale of a product or service for a specified period. In business format franchising the agreement will involve a common brand and marketing format. Many service businesses are
operated under franchise include well-known brands such as Burger King, KFC and KwikPrint Full cost pricing Full cost plus pricing seeks to set a price that takes into account all relevant costs of production Gender segmentation The segmentation of markets based on the sex of the customer. The cosmetic industry is a good example of widespread use of gender segmentation Geographic segmentation Geographic segmentation divides markets into different geographical units Going-rate pricing A pricing strategy that sets price largely based on the prices of competitors Growth stage The stage at which a product's sales rise rapidly and profits reach a peak, before levelling off into maturity. Harvest A strategy based on the Boston Matrix. Here the company reduces the amount of investment in order to maximize the short-term cash flows and profits from the SBU. This may have the effect of turning Stars into Cash Cows. Hold A strategy based on the Boston Matrix. Here the company invests just enough to keep the SBU in its present position Impulse buying Behavior that involves no conscious planning but results from a powerful, persistent urge to buy something immediately Income elasticity of demand Income elasticity of demand measures the relationship between a change in quantity demanded and a change in income Industrial buyers Industrial buyers are those who purchase items on behalf of their business or organization Industrial market Industrial markets involve the sale of goods between businesses. These are goods that are not aimed directly at consumers. Inferior goods Inferior goods have a negative income elasticity of demand. Demand falls as income rises Influencer A person in a group buying situation (e.g. a family) who exerts significant influence in the final buying decision Initiator A person in a group buying situation (e.g. a family) who first suggests buying a particular product or service Innovators Innovators are those who adopt new products first. They are usually relatively young, lively, intelligent, socially and geographically mobile. They are often of a high socioeconomic group (“AB’s”). Intensive distribution Intensive distribution aims to provide saturation coverage of the market by using all available outlets
Internal marketing The process of eliciting support for a company and its activities among its own employees, in order to encourage them to promote its goals. This process can happen at a number of levels, from increasing awareness of individual products or marketing campaigns, to explaining overall business strategy. Introduction stage A product's first appearance in the marketplace, before any sales or profits have been made Involvement The level of interest, emotion and activity which the consumer is prepared to expend on a particular purchase Labelling Packaging information that can be used for a variety of promotional, informational and legal purposes. Laggards The group of consumers who are typically last to buy a new product Late majority People who are quite skeptical about new products but eventually adopt them because of economic necessity or social pressure Lifestyle Lifestyle is a person’s pattern of living as expressed in his or her activities, interests and opinions Lifestyle segmentation Lifestyle segmentation of a market is based on identifying lifestyle characteristics of customers that enable target customer groups to be identified. Many businesses now segment their markets by lifestyles, as these are increasingly seen as good predictors of consumer behavior. Most companies use off-the-shelf research-agency classifications (such as the Target Group Index), because of the high cost and complexity of developing their own. Logo A graphic, usually consisting of a symbol and/or group of letters that identifies a company or brand. Macro forecasting Macro forecasting is concerned with forecasting markets in total. This is about determining the existing level of Market Demand and considering what will happen to market demand in the future. Mail panels Groups of consumers selected to represent a market or market segment who agree to be regularly interviewed by mail Manufacturer brand Manufacturer brands are created by producers and bear their chosen brand name. The producer is responsible for marketing the brand. The brand is owned by the producer. By building their brand names, manufacturers can gain widespread distribution (for example by retailers who want to sell the brand) and build customer Marker leader The business in a market with the largest market share. The market leader, particularly one with a dominant market share, is often “followed” by competitors in terms of pricing and product strategy Market A market is the demand for a particular product or service, often measured by sales during a specified period. Market challenger A business in a market that is fighting hard to increase its market share
Market concentration Market concentration is the proportion of market value that is owned by the leading brands or products/companies in the market. Where the market leaders own a large part of the overall market, the market is said to be highly concentrated. By contrast, where the market leader has a relatively small market share and there are many other competitors, a market is said to be “fragmented” Market development The process of growing sales by offering existing products (or new versions of them) to new customer groups (as opposed to simply attempting to increase the company’s share of current markets). Market entry The launch of a new product into a new or existing market. A different strategy is required depending on whether the product is an early or late entrant to the market; the first entrant usually has an automatic advantage, while later entrants need to demonstrate that their products are better, cheaper and so on. Market follower A firm that is happy to follow the leaders in a market place without challenging them, perhaps taking advantages of opportunities created by leaders without the need for much marketing investment of its own - see also 'market challenger' and 'market leader' Market positioning A marketing strategy that will position a business’ products and services against those of its competitors in the minds of consumers. To achieve positioning success it is suggested that there are four basic competitive strategies that a company can follow (based on work by Porter): - Cost leadership - the company tries to achieve lowest costs of production and distribution - Differentiation - making use of specific marketing mixes - Focus - paying attention to a few market segments The fourth strategy is a losing strategy in which a business pursues a middle-of-the-road path. Businesses that try to be good at everything are rarely particularly good at anything. Market research The systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services Market segment A customer group within the market that has special characteristics which are significant to marketing strategy Market segmentation Segmentation involves subdividing markets, channels or customers into groups with different needs, to deliver tailored propositions which meet these needs as precisely as possible. Market share Market share can be defined as the percentage of all sales within a market that is held by one brand / product or company. Market targeting Market targeting is the process of evaluating each market segment and selecting the most attractive segments to enter with a particular product or product line. Marketing The all-embracing function that links the business with customer needs and wants in order to get the right product to the right place at the right time”
Marketing audit A systematic examination of a business’s marketing environment, objectives, strategies, and activities with a view to identifying key strategic issues, threats and opportunities. Marketing concept The marketing concept is about matching a business’ capabilities with customer wants. Marketing intelligence The composite of all data and ideas available within an organization that assists in decision-making. Marketing plan A detailed statement (usually prepared annually) of how a company's marketing mix will be used to achieve its market objectives. A marketing plan is usually prepared following a marketing audit. Maturity stage The stage during which a product's sales curve peaks and starts to decline, and profits continue to decline. Media analysis Media analysis is a term used in advertising. It refers to an investigation into the relative effectiveness and the relative costs of using the various advertising media in an advertising campaign Micro forecasting Micro forecasting is concerned with detailed unit sales forecasts. This is about determining a product’s market share in a particular industry and considering what will happen to that market share in the future Mission A mission describes the organization’s basic function in society, in terms of the products and services it produces for its customers. Mission statement A mission statement is a formal description of the mission of a business. Multi-channel marketing When a business distributes its products through more than one distribution channel, this is known as multi-channel marketing. Retail chains, for example Argos, besides using the shops to distribute their products, quite often also use catalogue selling. The main purpose of multi-channel marketing is to more effectively reach different customer segments Multi-segment strategy A strategy by which a business directs its marketing efforts towards two or more market segments by developing a marketing mix for each New product A new product can be defined as a good, service or idea that is “perceived” by some potential customers as new. It may have been available for some time, but many potential customers have not yet adopted the product nor decided to become a regular user of the Product. Niche marketing Niche marketing refers to the exploitation of comparatively small market segments by businesses that decide to concentrate their efforts. Niche segments exist in nearly all markets – for example the self-build sports car segment of the motor industry Non-personal communication Methods of promotion that do not generate any personal feedback. Advertising is the best example of this Normal goods Normal goods have a positive income elasticity of demand so as income rise more is demand at each price level Objectives Measurable aims of a business set for a given period (e.g. marketing objectives for the next year)
Occasion segmentation A basis of segmenting a market based on occasions when buyers get the idea to make a purchase, actually buy, or use a purchased item. Opportunities Opportunities are any feature of the external environment which creates conditions that a business can exploit to its advantage. If the business is successful in exploiting opportunities, then it will be better placed to achieve its objectives. Own-label brand Own-label brands are created and owned by businesses that operate in the distribution channel – often referred to as “distributors”. Often these distributors are retailers, but not exclusively. Sometimes the retailer’s entire product range will be own-label. However, more often, the distributor will mix own-label and manufacturers brands Packaging The activities of designing and producing the container or wrapper for a product Penetration pricing Penetration pricing involves the setting of lower, rather than higher prices in order to achieve a large, if not dominant market share Penetration strategy A marketing strategy based on low prices and extensive advertising to increase a product's market share. For penetration strategy to be effective the market will have to be large enough for the seller to be able to sustain low profit margins. Personal selling Oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale Porter’s Five Forces Model An analytic model developed by Michael E. Porter. The five forces in terms of which the model analyses businesses and industries are: Buyers, Suppliers, Substitutes, New Entrants and Rivals Portfolio planning Portfolio planning is the process of managing groups of brands and product lines Positioning Positioning is how a product appears in relation to other products in the market Pre-emptive pricing Pre-emptive pricing is a strategy involves setting low prices in order to discourage or deter potential new entrants to the suppliers market. It is especially suited to markets in which the supplier does not hold a patent, or other market privilege and entry to the market is relatively straightforward. Prestige pricing Prestige pricing refers to the practice of setting a high price for an product, throughout its entire life cycle – as opposed to the short term ‘Opportunistic’, high price of price ‘skimming’. This is done in order to evoke perceptions of quality and prestige with the product or service Price The price of a product may be seen as a financial expression of the value of that product Price discrimination Price discrimination occurs when a firm charges a different price to different groups of consumers for an identical good or service, for reasons not associated with costs
Price elasticity of demand Price elasticity of demand measures the responsiveness of a change in demand for a product following a change in its own price Price sensitivity Price sensitivity is the effect a change in price will have on customers Price skimming Price skimming involves charging a relatively high price for a short time where a new, innovative, or much-improved product is launched onto a market Primary research data Primary market data is data collected specifically for the market research project and obtained directly from the relevant source Problem/Need recognition The first stage in the buying process where the potential customer recognizes that a problem or a need can be met by buying a product or a service Product A product is defined as anything that is capable of satisfying customer needs Product class Product class is a broad category of product such as cars, washing machines, newspapers. Product form Within a product class, there are different forms that the product can take. For example, people carriers or two-seater sports cars are product forms within the motor cars product class Product group A product group (or product line) is a group of brands that are closely related in terms of their functions and the benefits they provide Product life cycle The course of a product's sales and profitability over its lifetime. The model describes five stages, each of which represents a different opportunity for the marketer: - Development - Introduction - Growth - Maturity - Decline Product map A product map defines the market in terms of the way buyers perceive key characteristics of competing products Product mix The set of all product lines and items that a particular business offers for sale to buyers Product quality The ability of a product to perform its functions (“fit for purpose”). Quality is a function of several factors including reliability and ease of use Promotion One of the four “P’s” of the marketing mix. Promotion is all about businesses communicating with customers Promotional mix The promotional mix consists of a blend of five main kinds of promotional tools: advertising; direct marketing; personal selling; sales promotion and public relations
Psychographic segmentation Psychographic (or “lifestyle”) segmentation seeks to classify people accordingly to their values, opinions, personality characteristics and interests. Public relations The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics Publicity Promotional activities designed to promote a business and its products by obtaining media coverage not paid for by the business Pull promotion Pull promotion, in contrast to Push promotion, addresses the customer directly with a view to getting them to demand the product, and hence “pull” it down through the distribution chain. It focuses on advertising and above the line activities. See also 'push promotion' Purchase decision The stage in the customer buying process when the purchase decision is actually made Push promotion Push promotion relies on the next link in the distribution chain - e.g. a wholesaler or retailer - to “push” our products to the customer. It revolves around sales promotions - such as price reductions and point of sale displays - and other below the line activities. See also 'Sales Promotion' Qualitative forecasting Qualitative forecasting is based on experience and judgment. Examples include general surveys of customers, distributors and the sales force Qualitative Research Research that deals with information too difficult or expensive to quantify, such as subjective opinions and value judgments, typically unearthed during interviews or discussion groups Quantitative forecasting Quantitative forecasting is based on facts. Good examples include time- series analysis and statistical surveys of customer purchasing behaviour Quantitative Research Market research that concentrates on statistics and other numerical data, gathered through opinion polls, customer satisfaction surveys and so on. Compare 'qualitative research' Question marks A term used in the Boston Group Matrix. Question marks are businesses or products with low market share but which operate in higher growth markets. This suggests that they have potential, but may require substantial investment in order to grow market share at the expense of more powerful competitors. Questionnaire Base document for research purposes, providing the questions and structure for an interview or self-completion and providing space for respondents' answers. Quota sampling A sampling method in which the final choice of respondents is left to the interviewers, who base their choices on two or three variables (such as age, sex and education). Random sampling A sampling method in which all the units in a population have an equal chance of appearing in the sample. Retailers Retailers operate outlets that trade directly with household customers
Sales forecast The sales forecast is the expected level of company sales based on a Chosen marketing plan and an assumed marketing environment. Sales promotion Sales promotion refers to any activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door to-door calling, telephone-selling, personal letters on other methods. Sample A small group of items selected from a larger group to represent the characteristics of the larger group. Samples are often used in marketing research because it is not feasible to interview every member of a particular market; however, conclusions about a market drawn from a sample always contain a sampling error and must be used with caution. The larger the sample, in general, the more accurate will be the conclusions drawn from it Secondary research data Secondary market data is data that has already been obtained, analyzed and used for other purposes or for general reference Segmentation variables or bases The dimensions or characteristics of individuals, groups or businesses that are used for dividing a total market into segments. Selective distribution Selective distribution involves a producer using a limited number of outlets in a geographical area to sell products Soft goods Soft goods are similar to consumer durables, except that they wear out more quickly and therefore have a shorter replacement cycle. Examples include clothes and shoes. Sponsorship Supporting an event, activity or organization by providing money or other resources that is of value to the sponsored event. This is usually in return for advertising space at the event or as part of the publicity for the event. Stars A term used in the Boston Group Matrix. Stars are high growth businesses or products competing in markets where they are relatively strong compared with the competition. Often they need heavy investment to sustain their growth. Eventually their growth will slow and, assuming they maintain their relative market share, will become cash cows. Strapline A slogan often used in conjunction with a brand name, advertising and other promotional methods (e.g. “Guinness is good for you”) Strategic business unit (“SBU A SBU is a unit of the company that has a separate mission and objectives and that can be planned independently from the other businesses. An SBU can be a company division, a product line or even individual brands - it all depends on how the company is organized. Stratified sampling A sampling method in which the population of interest is divided according to a common characteristic or attribute and a probability sampling is then conducted within each group
Strengths Strengths are a particular skill, resource or distinctive competence which the business possesses and which will enable it to achieve its stated objectives. Strengths are a source of competitive advantage. As such they should be protected and built upon. Target market The group of potential customers sharing common needs and characteristics that a business decides to serve Telemarketing Telemarketing (sometimes also referred to as “telesales”) is a method of direct marketing in which the telephone is used to contact potential customers in order to reduce the time spent in making personal visits. Traditionally, products such as double glazing and central heating have been marketed using this technique Telephone surveys Surveys in which respondents' answers to a questionnaire are recorded by interviewers on the phone Test marketing Test marketing occurs when a new product is tested with a sample of customers, or launched in a restricted geographical area, to judge customers' reactions. If the product is unsuccessful, the business will have minimized its costs and can either make changes before the main launch or decide to discontinue the product. Test marketing has a disadvantage in that competitors learn about the new product before its full launch Threats Threats are any aspect of the external environment which cause problems and which may prevent achievement of objectives. Almost by definition, what presents a threat to one business offers an opportunity to other businesses. Trademark Legal designation indicating that the owner has exclusive use of a brand Undifferentiated marketing Undifferentiated marketing is the marketing of a product aimed at the widest possible market. For example, in the holiday market, the sale of short-haul summer-sun package holidays to the Mediterranean is an undifferentiated mass-market product. Unique selling proposition A unique selling proposition (“USP”)is a customer benefit that no other product can claim Vision The long-term aims and aspirations of the company for itself Weaknesses Weaknesses are any aspect of the business which may prevent the business from achieving its objectives. Weaknesses are a source of competitive disadvantage. Management should seek ways to reduce or eliminate weaknesses before they are exploited further by the competition Wholesaler Often part of the distribution channel; involves the selling of goods in large quantities to be retailed by others
Term Description Approach The act of taking steps for a particular purpose. It can be called a technique or style of bringing something to fruition. Benefit Satisfaction or need fulfillment that the client receives from a product or service. Bottom-Up Planning Strategy used in corporate planning whereby information is gathered from sales personnel, product managers, advertising personnel, and other members working in the organizational unit to set goals and create a marketing plan. Bottom- up planning is considered good for morale because it fosters employees to participation in corporate planning. However, the strategy is sometimes difficult to coordinate because many different assumptions about the same concept must be considered. Brand A brand is a name, term, design, symbol, or other feature that distinguishes products and services from competitive offerings. Brand Strategy The plan of execution conducted for a brand in order to increase the brand’s market share and optimize brand functioning, presence and awareness. Bundle Combining multiple “things” to sweeten or enhance the base offer. Buy one, get one free and so on. Often used to increase perceived value to end-user. Channel Partner A firm who participates in the flow of goods and services from producer to final user or customer. Client Person, company, or organization who uses the professional services of another. Commodity Something useful that can be turned to commercial or other advantage. Compelling Truth Undeniable differentiator between a company and its competitors Communication Plan Tactical rollout plan of marketing strategy. Competitive Intelligence Information acquired by a market competitor about the companies with which it competes. Competitive intelligence might include pricing, advertising strategies, names of clients, technical advantages and disadvantages, market strengths and weakness and so forth.
Concept Idea (which may be a product, its benefits, and alternative uses) or its presentation as shown in an advertising layout or campaign. Essentially, though, a concept is executed thought and must be tested among potential and current users of a product. Many ideas sound wonderful but do not work in practical reality. The road from concept to final results is a long one, but, in general, all successful advertising has been designed around a simple concept. Conceptual Target Understanding the mindset of our customers, our customer’s customers, other emerging customer’s etc. We need to figure out what their wants and needs are. Core Competencies The things a company does best. Its’ main line of business. Core Desire What the customer “needs” v. “wants”. Core Market Primary target market. Creative strategy A creative strategy is an outline of the message to be communicated by an advertising campaign, the audience, and the tone. Crisis Management A set of actions taken by a company (and all departments) in response to a situation that may affect the company in a negative manner. Critical Path Method Sequence of activities and actions that must be completed in order of sequence, for the entire project to be completed on schedule. It articulates the necessary sequential steps to complete a project or achieve an objective.
Current Marketing Situation Provides a snapshot on the market, product(s), competition, distribution, and microenvironment. Database marketing Collection, storage, analysis, and use of all available data about a prospect or customer; usually maintained on a computer file. Data may be collected from past purchases, such as items purchased, and the regency, frequency, and monitory value of purchases, or it may be no purchase related. Data can be generated by the marketer’s activities (sales, surveys) and supplemented by data purchased from other sources. Database marketing assumes that the marketer can predict future purchase behavior through analysis of customer characteristics and past actions. Database marketing increases the cost effectiveness of promotions by segmentation of the customer list into clearly defined target groups with a high probability of purchase. Differentiated marketing Selecting and developing a number of offerings to meet the need of specific market segments. Differentiated strategy Differentiation strategy is an integrated set of action designed to produce or deliver goods or services that customers perceive as being different in ways that are important to them. It sells non-standardized products to customers with unique needs Early adopter A customer who is among the earliest within a market (considered visionaries). Executive Summary Presents an overview for management, providing essential information and details only. Events Marketing Face-to-face promotional experiences between customers and companies. Infrastructure Basic facilities, equipment and installations needed for the functioning of a system. Integrated Marketing A holistic approach to promote buying and selling. This concept includes many online and offline marketing channels. Integrated Marketing Communications A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.
Key Account Primary account, in terms of revenue, for a service business. Market Leader Organization whose product or brand got to the market first or who maintains a dominant market share and enjoys a solid brand and name recognition. Customers tend to choose the leading brand because, among other things, it simplifies the decision process. Market Environment The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing Environment, namely the 'macro- environment,' the 'micro-environment' and the 'internal environment'. Market Niche A specialized portion of the market. Market Position The relationship of a product or company to the competition in a specific market. Market Penetration The share of a given market that is provided by a particular good or service at a given time. The reach. Market Segmentation Analyzing sub-markets within a greater market. Marketing Is the art of being able to discern what consumers' want; focusing products or services to those wants, and modifying or change the consumers’ behavior to purchase those goods or services. Marketing Audit A marketing audit is a strategic action to review the effectiveness or efficiency of a particular marketing program, strategy or process. A comprehensive, systematic, periodic evaluation of a company’s marketing capabilities. The audit examines the goals, policies and strategies of the marketing function as well as the methods of the organization and the personnel who carry out the goals, policies, and strategies of the marketing function. Marketing Message What a company wants to convey about itself to its internal or external audience. Marketing Mix Traditionally, it is a combination of Product, Price, Promotion and Distribution initiatives And channels to communicate with the target audience.
Marketing Plan Plan that details a company’s marketing effort; also called action program, or marketing strategy. The marketing plan may be laid out for an individual product or for the entire company and all its products. In either case, the plan specifies the marketing goals and objectives to be achieved over a specific time period and then lays out the various strategies to be followed by achieving them. It will also delineate the responsibilities for carrying out the plan. Marketing Program The tactical deployment of a specific marketing strategy (for example, demand generation, direct mail, advertising, seminars, etc.) in support of organizational or business goals and objectives. Marketing Strategy Presents the broad marketing approach that will be used to meet the plan’s objectives. This is a result of a company determining what business it is in, how that business fits into the marketplace and how it can logically and effectively move to optimize profits and return on investment. Marketing Communications Planning This is the process of selecting the best mediums and channels to reach the intended audience. Objectives Defines the goals the plan wants to reach in the area of sales volume, market share, and profit. Offer Anything that creates a desire or want on the side of the consumer. It can be products or intangible (as in promotional offer) Opportunity & Issue analysis Examination and interpretation of information provided through the use of the SWOT matrix: Strength, Weakness, Opportunity and Threads. Overarching Message The overarching messages blends the plan, strategy and storyline. Perceived Risk Negative or unexpected consequence customer fears may occur as a result of making the wrong purchase decision. A high-priced, complex, durable good has a greater perceived risk than a low- priced, consumable commodity. The greater the perceived risk, the more likely it is that the
customer will seek information about the product. Personal Selling Delivery of a specially designed message to a prospect by a seller, usually in the form of face-to-face communication, personal correspondence or a personal phone conversation. Unlike advertising, a personal sales message can be more specifically targeting and easily altered. Product Marketing Strategy Marketing plan for a product based on the characteristics on the target market, market share objectives, desired product positioning within the market, and profit objectives. Strategic plans for a product are based on decisions based on the Four Ps (product, place, price and promotion), financial targets and budgets, and tactical plans Promotion Depending on usage, it can be a single element of a campaign. It can be referring to the overall approach to getting something ‘socialized’. For instance, a promotion might be short-term price reduction, contest or sweepstake, package giveaway, or free sample offer. A promotion might also be a single mailing with within a direct mail campaign or series of advertisements that make up part of an ongoing print advertising campaign. Promotional Mix A traditional sales promotion mix can consist of coupons, premiums, samples, trade shows, contents, sweepstakes, point-of- purchase incentive, allowances, etc. Segmentation Strategy Marketing plan where all marketing efforts are directed at one particular market segment. Solutions An answer or set of answers to a specific problem or problems. Strategy Roadmap of how a company or organization will achieve objectives. Strategic Alliance Companies that partner together who complement their strengths and offset their weaknesses while generating revenue. Strategic Planning Determination of the steps required to reach an objective that makes the best use of available resources. In marketing, a strategic plan involves selecting a target market segment or segments and a position within the market in terms of product
characteristics, price, channels of distribution, and sales promotion. SWOT Analysis Part of a strategic plan involves deciding whether to enter a new untapped market, to grow an existing market, to dominate an existing market, or to dominate a small segment of an existing market by replacing competitors or by filling an unmet need. Looks at all aspects of a company to determine what are the internal strengths (S), weaknesses (W), opportunities (O), and threats (T) that will impact business. Called SWOT Analysis, a situational analysis is a basic element of the marketing plan and is used to make projections for the proposed marketing plan and is used to make projections for the proposed marketing activities.
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