Marketing Glossary

1. 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

2. 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

3. 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

4. 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.

5. 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

6. 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

7. 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

8. 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”

9. 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)

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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.

16. 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.

17. 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.

18. 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.

19. 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

20. 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

21. 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.