Marketing Glossary
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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, to persuade or to remind your target audience.

Benefit: The gain obtained from the use of a particular product or service. Consumers purchase products and/or 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: A specific Identifier for products or services that 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 “Smirnoff” on a number of business activities.

Break-even: A point for a business where turnover is equivalent to all costs.

Channel Audience: A specific third party audience that channels or refers ‘target audience’ business to an organization.

Competitive Advantage: Offering a different benefit then that of your competitors.

Competitor Analysis: Process of understanding and analyzing a competitor’s 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 eg YES/NO.

Direct Marketing: The process of sending promotion material to a named person within an organization.

Diversification: A growth strategy of an organization to provide new products or services. The new products could be related or unrelated to the organization’s 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. As opposed to the “Laggards”.

Engels Law: Suggest that peoples spending patterns change as their income rises.

Exclusive Distribution: Limiting the distribution of a product to a particular retail store to create an exclusive feel to the brand/product.

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. As opposed to the “Early Majority”.

Lifestyle Segmentation: Analyzing consumer 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 marketing strategy of an organization which takes into consideration; 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 an 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 turnover 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’s 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(consumers, channel markets, etc).

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.

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.

Target Audience: A specific demographic audience that an organization’s marketing communications is aimed toward.

Test Marketing: Testing a new product or service within a specific region before national launch.

Usage Segmentation: Dividing a market segment into non, light, medium or heavy users.