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Pearson Education - Marketing glossary
Category: Management > Marketing
Date & country: 11/11/2007, UK
Words: 260

(a) tailoring a product or other aspects of the marketing mix to suit the different needs and demands of other markets, usually international; (b) changing production methods or product specifications in a B2B market in order to better meet an individual customer's requirements.

a paid form of non-personal communication transmitted through a mass medium.

Advertising media
the means through which advertisements are delivered to the target audience. Media include broadcast media, print media, cinema, hoardings and outdoor media.

a form of print advertising that is designed to mimic the editorial content, style and layout of the publication in which it appears.

Agents and brokers
intermediaries who have legal authority to act on behalf of a seller in negotiating sales, but who do not take title to goods themselves.

Ansoff matrix
a framework for considering the relationship between general strategic direction and marketing strategies. The four-cell matrix looks at permutations of new/existing products and new/existing markets.

(a) the elements that come together to make an impact on retail customers' senses as they enter and browse in a store; (b) creating a feeling appropriate to the character of the store and the desired mood of the customers.

the stance that individuals take on a subject that predisposes them to act and react in certain ways.

Augmented product
add-on extras that do not form an integral part of the product but which might be used, particularly by retailers, to increase the product's benefits or attractiveness. Includes guarantees, installation, after-sales service, etc.

the consciousness that a product or organisation exists.

Banner advertising
advertising that appears on a website, usually as a banner across the top of a page that clicks the user through to the advertiser's website.

a form of product based sales promotion â€` buy one get one free also known as BOGOFF.

Boston Box
(also known as the BCG matrix) a tool for analysing a product portfolio, plotting relative market share against market growth rate for each product. The resultant matrix classifies products as cash cows, dogs, question marks and stars.

the creation of a three-dimensional character for a product, defined in terms of name, packaging, colours, symbols, etc., that helps to differentiate it from its competitors, and helps the customer to develop a relationship with the product.

Breadth of range
the variety of different product lines either (a) produced by a manufacturer; or (b) stocked by a retailer.

Breakeven analysis
shows the relationship between total costs and total revenue in order to assess the profitability of different levels of sales volume.

Bulk breaking
buying large quantities of goods and then reselling them in smaller lots, reflecting some of the cost savings made through bulk buying in the resale price. A prime function of intermediaries.

Business format franchise
allows a franchisee access not only to a product concept, but also to a comprehensive package that allows the product or service to be delivered in a standardised way regardless of the location.

Business to business marketing
see B2B marketing.

Buyerâ€`seller relationship
the nature and quality of the social and economic interaction between two parties.

Buying centre
a group of individuals, potentially from any level within an organisation or from any functional area, either contributing towards or taking direct responsibility for organisational purchasing decisions. The buying centre might be formally constituted, or be a loose informal grouping.

computer aided personal interviewing.

Cash rebate
a form of sales promotion usually involving the collection of a specified number of proofs of purchase in order to qualify for a cash sum or for a coupon.

Catalogue showrooms
a High Street store selling goods through catalogues displayed in the outlet, with the customer collecting goods immediately from a pick-up point on the premises.

computer aided telephone interviewing.

Channel strategy
decision taken about the allocation of roles within a channel of distribution, and the way in which the channel is formally or informally managed and administered.

Closed questions
market research questions which offer the respondent a limited list of alternative answers to choose from.

Closing the sale
the stage of the personal selling process in which the customer agrees to purchase.

Cold calling
unsolicited visits or calls made by sales representatives to potential customers.

a percentage of the value of goods sold paid as total or partial remuneration to a sales representative or agent.

Competitive edge
having a clear advantage over the competition in terms of one or more elements of the marketing mix that is valued by potential customers.

Competitive posture
an organisation's means of dealing with competitors' actions in a market, proactively or reactively. Postures can be aggressive, defensive, cooperative or independent.

Concept testing
the presentation of a new product concept, in terms of its function, benefits, design, branding, etc., to a sample of potential customers to assess their reactions, attitudes and purchasing intentions towards it.

(also known as stores within stores) trading areas usually within department stores, sold, licensed or rented out to manufacturers or other retail names so that they can create their own distinctive trading image.

Consumer goods
goods that are sold to individuals for their own or their families' use.

Continuous research
research undertaken, usually by commercial market research organisations, on a long-term, ongoing basis, to track changing patterns in markets.

a type of market entry method whereby a manufacturer contracts with a company in a foreign market to produce or assemble goods on its behalf.

Convenience goods
relatively inexpensive frequently purchased consumer goods; related to routine problem solving buying behaviour.

Convenience stores
usually small neighbourhood grocery stores that differentiate themselves from the supermarkets through longer opening hours and easy accessibility.

Conversion rate
the number of enquiries from potential customers or sales visits made by sales representatives that actually turn into orders or sales.

writing the verbal (written or spoken) elements of an advertisement.

Core product
the prime purpose of a product's existence which might be expressed in terms of functional or psychological benefits.

Corporate chain
multiple retail outlets under common ownership, usually with national coverage.

Corporate identity
the character and image of an organisation, reflecting its culture, that is presented to its various publics, including the organisation's name and logo.

Corporate PR
public relations activities focused on enhancing or protecting the overall corporate image of an organisation.

Count and recount
a form of sales promotion targeted at intermediaries through which rebates are given for all stock sold during a specified promotional period.

a form of sales promotion consisting of printed vouchers, distributed in a variety of ways, that allow a customer to claim a price reduction on a particular product or at a particular retailer's stores.

Creative appeal
the way in which an advertising message is formulated in order to provoke the desired response from the target audience. Types of appeal include rational, emotional, product-orientated or consumer-orientated appeal.

see corporate social responsibility.

the personality of the society in whichan individual lives, manifest in terms of the built environment, literature, the arts, beliefs andvalue systems.

an e-tailer that sells direct to the customer; also any online intermediary that helps the individual to locate a specific website or guides them towards sites of interest. Search engines, online shopping malls and online directories are all cybermediaries.

Data-based budget setting
setting advertising or marketing budgets using methods that do not involve guesswork or arbitrary figures. The two main methods are competitive parity, and objective and task.

Database marketing
compiling, analysing and using data held about customers in order to create better tailored, better timed offers that will maximise customer value and loyalty.

Decision-making unit (DMU)
see buying centre.

the measurable aspects of population structure, such as birth rates, age profiles, family structures, education levels, occupation, income and expenditure patterns.

Depth of range
the amount of choice or assortment within a product line.

Derived demand
where demand for products or components in B2B markets depends on consumer demand further down the chain; for example demand for washing machine motors is derived from consumer demand for washing machines.

Direct export
selling goods to foreign buyers without the intervention of an intermediary.

Direct mail
a direct marketing technique involving the delivery of promotional material to named individuals at their homes or organisational premises.

Direct marketing
an interactive system of marketing that uses one or more advertising media to effect a measurable response at any location, forming a basis for further developing an ongoing relationship between an organisation and its customers.

Direct response advertising
advertising through mainstream advertising media that encourages direct action from the audience, for example, requests for more information, requests for a sales visit, or orders for goods.

Direct supply
a distribution channel in which the producer deals directly with the end customer without the involvement of intermediaries.

Discount clubs
similar to wholesalers, but re-selling in bulk to consumers who are members of the club rather than small retailers.

cutting one or more intermediaries out of the distribution channel.

developing new products for new markets.

a company set up specifically to sell or deliver goods and/or services via the internet.

decision support system; an extension of the MIS that allows the marketing decision maker to manipulate data to explore scenarios and ‘what if …' questions as an aid to decision-making.

Durable products
products that last for many years and are thus likely to be infrequently purchased, such as electrical goods and capital equipment.

Dynamically continuous innovation
the introduction of new products with an element of significant innovation that could require major reassessment of the product within customers' buying behaviour.

electronic point of sale systems which streamline stock control and ordering systems through barcode scanning and allow the automatic processing of credit card payments for goods.

(also known as a pan-European brand) a brand which is marketed and sold with a standardised offering across a number of different European countries.

Evoked set
the shortlist of potential products that the consumer has to choose from within the purchasing decision-making process.

Exchange process
the interaction between buyer and seller in which each party gives the other something of value. Usually, the seller offers goods and services, and the buyer offers money.

Extending the product line
adding further product items into a product line to extend coverage of the market, for instance introducing a bottom of the range cut-price version of a product, or developing a premium quality product to extend the top end of the range.

Family lifecycle
a model representing the way in which a family's structure changes naturally over time.

Filling the product range
adding further product items into a product line to fill gaps within the range, for instance introducing additional flavours, pack sizes or packaging formats.

Fmcg products
fast moving consumer goods; relatively low-priced, frequently purchased items, such as groceries and toiletries.

Focus group
a small group of people, considered to be representative of the target segment, invited to discuss openly products or issues at their leisure in a relaxed environment.

estimates of future demand, sales or other trends, calculated using quantitative and/or qualitative techniques.

a contractual vertical marketing system in which a franchisor licenses a franchisee to produce and market goods or services to criteria laid down by the franchisor in return for fees and/or royalties.

an intermediary who holds a contract to supply and market a product or service to operating standards and criteria set by the franchisor.

the individual or organisation offering franchise opportunities.

the average number of times that a member of the target audience will have been exposed to an advertisement during a specified period.

GE matrix
a tool for analysing a product portfolio, plotting industry attractiveness against business position for each product, resulting in a nine-cell matrix.

Generic strategies
three broad strategic options that set the direction for more detailed strategic planning: cost leadership, differentiation and focus.

a combination of geographic and demographic segmentation that can either give the demographic characteristics of particular regions, neighbourhoods and even streets, or show the geographic spread of any demographic characteristics.

a characteristic of services, describing how difficult it is to ensure consistency in a service product because of its ‘live' production and the interaction between different customers and service providers.

House journal
an internal publication produced by an organisation in order to inform and entertain its employees and to generate better internal communication and relationships.

very large self-service out-of-town outlets, 5,000 m2 or more, stocking not only a wide range of grocery and fmcg products, but also other consumer goods such as clothing, electrical goods, home maintenance products, etc.

Independent retail outlet
a single retail outlet, or a chain of two or three stores, managed by either a sole trader or a family firm.

Indirect export
selling goods to foreign buyers through intermediaries such as export agents, export merchants or buying houses.

information brokers that gather information about online consumers, their preferences and shopping habits and then sell it on to other organisations and/or use it to act as a cybermediary on behalf of consumers to help them locate appropriate sites.

a characteristic of services, describing how service products tend to be produced at the same time as they are consumed.

Institutional advertising
a type of advertising that does not focus on a specific product, but on the corporate image of the advertiser.

a characteristic of services, describing their non-physical nature.

an organisation or individual through whom products pass on their way from the manufacturer to the end buyer.

Internal marketing
the development and training of staff to ensure high levels of quality and consistency in service delivery and support. Internal marketing includes recruitment, training, motivation and productivity.

Internet marketing
(also known as online marketing) the use of the internet to disseminate information, communicate with the marketplace, advertise, promote, sell and/or distribute products or services.

Joint demand
where demand for one product or component in a B2B market is dependent on the supply or availability of another, for example a computer assembler's demand for casings might depend on the supply or availability of disk drives.

Joint promotion
sales promotion activity undertaken by two or more brands or manufacturers jointly, for example collecting tokens from Virgin Cola in order to get two Eurostar tickets for the price of one.