Marketing Glossary
AIDA model of communication
A communication model which aims to obtain Attention, Interest, Desire and Action.
Advertising objective
The objective of your communication strategy. To inform of a new development, persuade or remind.
Benefit
The gain obtained from the use of a particular product or service. Consumers purchase product/services because of their desire to gain these built in benefits.
Benefit Segmentation
Dividing a market according to the benefit they seek from a particular product/service.
Brand name
Used for the identification of goods or services. Can be a name, term, sign or symbol. A well-managed brand should uphold certain values and beliefs.
Brand extension strategy
The process of using an existing brand name to extend on to a new product/service e.g. The application of the brand name Virgin on a number of business activities.
Break-even
A point for a business where turnover is equivalent to all costs.
Cash cow
A product/service which generates cash for the business, used to finance other areas of the organization.
Competitive Advantage
Offering a different benefit then that of your competitors.
Competitor Analysis
Process of understanding and analyzing a competitors strengths and weaknesses, with the aim that an organization will find a competitive positioning difference within the market.
Competition pricing
Setting a price in comparison with competitors.
Concept testing
Testing the idea of a new product or service with your target audience.
Brand repositioning
An attempt to change consumer perceptions of a particular brand. For example VW has successfully repositioned the Skoda brand.
Data mining
Application of artificial intelligence to solve marketing problems and aiding forecasting and prediction of marketing data.
Dichotomous question
Questions which limit the responses of the respondent e.g. YES/NO.
Direct marketing
The process of sending promotion material to a named person within an organization.
Diversification
A growth strategy, which involves an organization to provide new products or services. The new products on offer could be related or unrelated to the organizations core activities.
Demography
A study of the population.
Demographic segmentation
Dividing the population into age, gender, income and socio-economic groups amongst other variables.
Early Adopter
Those who adopt a product/service in the early stages of its lifecycle.
Early Majority
Those who adopt a product/service after it has been established and accepted as the standard.
Engels Law
Suggest that peoples spending patterns change as their income rises.
Exclusive distribution
Limiting the distribution of a product to particular retail store to create an exclusive feel to the brand/product.
Econometric modeling
Application of regression techniques in marketing analysis
Focus Group
A simultaneous interview conducted amongst 6-8 respondents. The aim is to obtain qualitative information on the given topic.
Geographic segmentation
Dividing the market into certain geographic regions e.g. towns, cities or neighborhoods.
Innovator
Those consumers who are the first to adopt a product/ service at the beginning of its lifecycle. They are usually willing to pay a premium to have the benefit of being the first.
Intensive distribution
Distributing a product to as many retail outlets as possible.
Laggards
Those consumers who adopt the product/service as it reaches the end of its lifecycle. They usually pay a competitive price for the benefit of waiting.
Lifestyle segmentation
Analyzing consumer’s activities, interest and opinion (AIOs) to develop a profile on the given segment.
Market Development Strategy
Selling an existing product/service in a new and developing market.
Mass marketing
The promotion of a product or service to all consumers.
Marketing Mix
The strategy of the organization consisting of products, price, place and promotion strategy (also known as the 4p's).
Marketing Planning
A written document, which plans the marketing activities of an organization for a given period. The document should include an environmental analysis, marketing mix strategies and any contingency plans should an organization not reach their given objectives.
Market position
The perception of a product or an organization from the view of the consumer.
Market research
Analyzing and collecting data on the environment, customers and competitors for purposes of business decision making.
Modified Rebuy
Where an organization has to make changes to a specific buying situation.
New buy
Where an organization faces the task of purchasing a new product/service.
Niche marketing
The process of concentrating your resources and efforts on one particular segment
Objective to task method
Setting a advertising budget based on the desired goals of the communication campaign.
Open ended questions
Questions which encourage the respondent to provide their own answers.
Paretos Law (80/20)
A rule which suggests that 80% of an organizations turnovers is generated from 20% of their customers.
Penetration pricing
A pricing strategy where the organization sets a low price to increase sales and market share.
Perceptual map
Mapping a product/organization alongside all competitors in the hope to find a ' positioning gap' in the given market.
Personal selling
Selling a product or services one to one.
Primary data
The process of organizing and collecting data for an organization.
Product Development Strategy
The development of a new product/service aimed at the organization existing market. The aim is to increase expenditure within the segment.
Product Life Cycle
The life stage of a product, includes, introduction, growth, maturity and decline.
Product Cannibalization
Loosing sales of a product to another similar product within the same product line.
Public relations
The process of building good relations with the organizations various stakeholders.
Relationship marketing
Creating a long-term relationship with existing customers. The aim is to build strong consumer loyalty.
Sales promotion
An incentive to encourage the sale of a product/service e.g. money off coupons, buy one, get one free.
Secondary data
Researching information, which has already been published.
Segmentation
The process of dividing a market into groups that display similar behavior and characteristics.
Skimming pricing
A pricing strategy where an organization sets an initial high price and then slowly lowers the price to make the product available to a wider market.
Straight Rebuy
Where an organization reorders without modification to the specification.
SWOT analysis
A model used to conduct a self-appraisal of an organization. The model looks at internal strengths and weaknesses and external environmental opportunities and threats.
Test marketing
Testing a new product or service within a specific region before national launch.
Usage segmentation
Dividing you segment into non, light, medium or heavy users.