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Definition
| “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. |
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Definition
| ACORN stands for “A Classification Of Residential Neighbourhoods”. It 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 |
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Definition
| Ad-hoc research focuses on specific marketing problems. It involves the collection of data at one point in time from one sample of respondents |
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Definition
| 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”. |
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Definition
| 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. |
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Definition
| The total amount of money that a marketer allocates for advertising over a period of time |
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Definition
| 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. |
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Definition
| 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 |
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Definition
| 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. |
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Definition
| A model used in strategic marketing planning. The Ansoff 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. |
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Definition
| The additional customer services and benefits (“added value”) that are built around the core product or service offering |
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Definition
| 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 |
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Definition
| 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 |
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Term
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Definition
| Behavioural segmentation divides customers into groups based on the way they respond to, use or know of a product. |
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Definition
| “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. |
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Term
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Definition
| 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 |
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Term
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Definition
| 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. |
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Definition
| A means of analysing and categorizing the performance of business units in large diversified firms by reference to market share and growth rates. |
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Definition
| 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. |
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Term
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Definition
| 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. |
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Term
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Definition
| Breakeven is achieved when total contribution is equal to total fixed costs. Addition contribution earned after this point becomes profit |
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Definition
| 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 |
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Definition
| The business portfolio is the collection of businesses and products that make up the business. |
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Definition
| Marketing activity directed from one business to another (as opposed to a consumer). This term is often shortened to “B2B” |
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Term
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Definition
| 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. |
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Term
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Definition
| 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. |
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Term
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Definition
| 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 |
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Term
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Definition
| A competitive advantage is a clear performance differential over the competition on factors that are important to customers |
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Term
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Definition
| Consumer buyers are those who purchase items for their personal consumption |
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Term
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Definition
| 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) |
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Definition
| Consumer markets are the markets for products and services bought by individuals for their own or family use |
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Term
| Continuous market research |
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Definition
| Continuous research involves interviewing the same sample of people, repeatedly |
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Term
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Definition
| Contribution per unit can be defined as selling price less variable costs. |
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Definition
| 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. |
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Definition
| 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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Definition
| Using a customer’s buying history to select them for related offers, e.g. a car alarm for new car buyers. |
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Term
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Definition
| A want is a desire for a specific product or service to satisfy the underlying need. |
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Term
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Definition
| The last stage of a product's life cycle, during which sales fall rapidly |
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Term
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Definition
| consists of dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality |
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Term
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Definition
| A marketing strategy aimed at ensuring that products and services have a unique element to allow them to stand out from the rest |
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Term
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Definition
| The delivery of an advertising or promotional message to customers or potential customers by mail. |
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Term
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Definition
| The planned recording, analysis and tracking of customer behaviour to develop a relational marketing strategies |
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Term
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Definition
| 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 |
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Term
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Definition
| The network of organisations necessary to distribute goods or services from the manufacturers to the consumers. |
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Term
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Definition
| Companies that buy and sell on their own account but tend to deal in the goods of only certain specified manufacturers. |
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Term
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Definition
| 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. |
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Definition
| People who choose new products carefully and are often consulted by people from the remaining adopter categories |
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Term
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Definition
| People who adopt products just prior to the average person |
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Term
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Definition
| The use of technologies such as the Internet, electronic data exchange and industry extranets to streamline business transactions |
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Term
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Definition
| The promotion of some kind of product recommendation or affirmation, usually from a celebrity, implying to the potential customer that a product is good |
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Term
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Definition
| 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 |
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Term
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Definition
| 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. |
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Term
| Fast-moving consumer goods |
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Definition
| 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 |
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Term
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Definition
| 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 |
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Term
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Definition
| 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) |
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Term
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Definition
| The selling of a licence by the owner (franchisor) to a third party (franchisee) permitting the sale of a product or service for a specifiedperiod. 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 |
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Term
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Definition
| Full cost plus pricing seeks to set a price that takes into account allrelevant costs of production |
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Term
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Definition
| The segmentation of markets based on the sex of the customer. The |
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Term
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Definition
| Geographic segmentation divides markets into different geographical units |
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Term
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Definition
| A pricing strategy that sets price largely based on the prices of competitors |
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Term
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Definition
| The stage at which a product's sales rise rapidly and profits reach a peak, before levelling off into maturity. |
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Term
| Income elasticity of demand |
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Definition
| measures the relationship between a change in quantity demanded and a change in income |
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Term
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Definition
| Industrial buyers are those who purchase items on behalf of their business or organisation |
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Term
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Definition
| A person in a group buying situation (e.g. a family) who exerts significant influence in the final buying decision |
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Definition
| 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”). |
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Term
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Definition
| Intensive distribution aims to provide saturation coverage of the market by using all available outlets |
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Term
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Definition
| A product's first appearance in the marketplace, before any sales or profits have been made |
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Term
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Definition
| The group of consumers who are typically last to buy a new product |
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Definition
| People who are quite sceptical about new products but eventually adopt them because of economic necessity or social pressure |
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Term
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Definition
| 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 behaviour. |
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Term
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Definition
| 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 |
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Term
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Definition
| A market is the demand for a particular product or service, often measured by sales during a specified period. |
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Term
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Definition
| A business in a market that is fighting hard to increase its market share |
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Definition
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Term
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Definition
| 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). |
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Term
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Definition
| 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. |
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Term
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Definition
| 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 |
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Term
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Definition
| A marketing strategy that will position a business’ products and services against those of its competitors in the minds of consumers. |
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Term
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Definition
| Segmentation involves subdividing markets, channels or customers into groups with different needs, to deliver tailored propositions which meet these needs as precisely as possible. |
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Term
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Definition
| Market share can be defined as the percentage of all sales within a market that is held by one brand / product or company. |
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Definition
| 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. |
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Definition
| 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 |
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Term
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Definition
| A systematic examination of a business’s marketing environment, objectives, strategies, and activities with a view to identifying key strategic issues, threats and opportunities. |
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Term
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Definition
| The marketing concept is about matching a business’ capabilities with customer wants. |
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Definition
| 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. |
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Definition
| The stage during which a product's sales curve peaks and starts to decline, and profits continue to decline. |
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Term
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Definition
| 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 campaigninto the relative effectiveness and the relative costs of using the various advertising media in an advertising campaign |
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Term
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Definition
| 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 |
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Term
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Definition
| Measurable aims of a business set for a given period (e.g. marketing objectives for the next year) |
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Definition
| 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 |
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Term
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Definition
| Penetration pricing involves the setting of lower, rather than higher prices in order to achieve a large, if not dominant market share |
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Term
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Definition
| 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. |
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Term
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Definition
| 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 |
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Term
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Definition
| Portfolio planning is the process of managing groups of brands and product lines |
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Definition
| Positioning is how a product appears in relation to other products in the market |
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Term
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Definition
| 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. |
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Term
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Definition
| 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 |
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Term
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Definition
| 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 |
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Term
| Price elasticity of demand |
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Definition
| Price elasticity of demand measures the responsiveness of a change in demand for a product following a change in its own price |
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Term
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Definition
| Price sensitivity is the effect a change in price will have on customers |
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Term
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Definition
| 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 |
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Term
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Definition
| Primary market data is data collected specifically for the market research project and obtained directly from the relevant source |
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Term
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Definition
| The first stage in the buying process where the potential customer recognises that a problem or a need can be met by buying a product or a service |
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Term
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Definition
| 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 |
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Definition
| The set of all product lines and items that a particular business offers for sale to buyers |
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Definition
| 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 |
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Definition
| One of the four “P’s” of the marketing mix. Promotion is all about businesses communicating with customers |
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Term
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Definition
| The promotional mix consists of a blend of five main kinds of promotional tools: advertising; direct marketing; personal selling; sales promotion and public relations |
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Term
| Psychographic segmentation |
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Definition
| Psychographic (or “lifestyle”) segmentation seeks to classify people accordingly to their values, opinions, personality characteristics and interests. |
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Term
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Definition
| The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics |
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Term
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Definition
| Promotional activities designed to promote a business and its products by obtaining media coverage not paid for by the business |
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Term
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Definition
| The stage in the customer buying process when the purchase decision is actually made |
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Term
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Definition
| Push promotion relies on the next link in the distribution chain - e.g. a wholesaler or retailer - to “push” out products to the customer. It revolves around sales promotions - such as price reductions and point of sale displays - and other below the line activities. |
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Definition
| Market research that concentrates on statistics and other numerical data, gathered through opinion polls, customer satisfaction surveys and so on. |
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Definition
| 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. |
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Term
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Definition
| Base document for research purposes, providing the questions and structure for an interview or self-completion and providing space for respondents' answers. |
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Term
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Definition
| 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). |
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Term
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Definition
| A sampling method in which all the units in a population have an equal chance of appearing in the sample. |
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Term
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Definition
| Retailers operate outlets that trade directly with household customers |
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Term
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Definition
| The sales forecast is the expected level of company sales based on a chosen marketing plan and an assumed marketing environment. |
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Term
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Definition
| 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, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telephone-selling, personal letters on other methods. |
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Term
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Definition
| 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 |
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Term
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Definition
| Secondary market data is data that has already been obtained, analysed and used for other purposes or for general reference Segmentation |
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Term
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Definition
| Supporting an event, activity or organisation 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. |
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Term
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Definition
| 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. |
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Term
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Definition
| A slogan often used in conjunction with a brand name, advertising and other promotional methods (e.g. “Guinness is good for you”) |
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Term
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Definition
| 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 |
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Term
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Definition
| 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. |
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Term
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Definition
| The group of potential customers sharing common needs and characteristics that a business decides to serve |
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Term
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Definition
| Telemarketing (sometimes also referred to as “telesales”) is a method 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 |
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Term
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Definition
| 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 minimised 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 |
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Term
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Definition
| 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. |
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Term
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Definition
| Legal designation indicating that the owner has exclusive use of a brand |
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Term
| Undifferentiated marketing |
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Definition
| Undifferentiated marketing is the marketing of a product aimed at the widest possible market. |
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Term
| Unique selling proposition |
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Definition
| A unique selling proposition (“USP”)is a customer benefit that no other product can claim |
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Term
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Definition
| Often part of the distribution channel; involves the selling of goods in large quantities to be retailed by others |
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