Marketing glossary for Business and DECA PDF

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this is a marketing glossary full of marketing terms for use in general business studies. can this please suffice for a description....

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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 Neighbourhoods”. 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.

Ansoff 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.

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tutor2u™ 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.

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tutor2u™ 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

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tutor2u™ 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

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tutor2u™ 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 maximise the short-term cash flows and profits from the SBU. This may have the effect of turning Stars into

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tutor2u™ 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

Behaviour 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 organisation

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 b...