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

Joint ventures
a jointly owned company set up by two or more other organisations: (a) as a means of market entry method; or (b) as a means of pooling complementary resources and exploiting synergy.

Judgemental budget setting
setting advertising or marketing budgets using methods that involve some degree of guesswork or arbitrary figures. Methods include: arbitrary, affordable, percentage of past sales, and percentage of future sales.

Layout
(a) in retailing, the arrangement of fixtures, fittings and goods in the store; (b) in advertising, the arrangement of the various elements of a print or poster advertisement.

Leads
names, addresses and/or other details of individuals or organisations which could be potential customers.

Learning
the change in behaviour that results from experience and practice.

Licensing
an arrangement under which an organisation (the licensor) grants another organisation (the licensee) the right to manufacture goods, use patents, use processes, or exploit trade marks within a defined market. Often used as an international market entry method.

Loading up
an objective of sales promotion, encouraging customers to advance their buying cycles, i.e. to buy greater quantities of a product in the short term than normal.

Logistics
the handling and movement of inbound raw materials and other supplies as well as outbound physical distribution.

Macro segments
segments in B2B markets defined in terms of broad organisational characteristics such as size, location and usage rates, or in terms of product applications.

Mail order
a form of non-store retailing usually involving a catalogue from which customers select goods, then mail or telephone their orders to the supplier. Goods are delivered to the customer's home.

Mailing list
a list of names and addresses, which can be compiled from organisational records or purchased, used as the basis for direct marketing activities.

Manufacturer brands
branding applied to goods that are produced and sold by a manufacturer who owns the rights to the brand.

Mark-up
the sum added to the trade price paid for a product to cover the intermediary's costs and profit. Mark-up can be measured as a percentage of the trade price or as a percentage of the resale price.

Market coverage
ensuring that the product is made available through appropriate intermediaries so that: (a) the potential customer can access it as easily as possible; and (b) the product is properly displayed, sold and supported within the channel of distribution. Market coverage might involve intensive distribution, selective distribution or exclusive distribution.

Market development
selling existing products into new segments or geographic markets.

Market penetration
increasing sales volume in current markets.

Market potential
the total level of sales achievable in a market assuming that every potential customer in that market is buying, that they are using the product on every possible occasion, and that they are using the full amount of product on each occasion.

Market segmentation
breaking a total market down into groups of customers and/or potential customers who have something significant in common in terms of their needs and wants or characteristics.

Marketing
creating and holding customers by producing goods or services that they need and want, communicating product benefits to customers, ensuring that goods and services are accessible, and that they are available at a price that customers are prepared to pay.

Marketing audit
the systematic collection, analysis and evaluation of information relating to the internal and external environments that answers the question ‘Where are we now?' for the organisation.

Marketing concept
a philosophy of business, permeating the whole organisation, that holds that the key to organisational success is meeting customers' needs and wants more effectively and more closely than competitors.

Marketing mix
the combination of the 4Ps that creates an integrated and consistent offering to potential customers that satisfies their needs and wants.

Marketing plan
a detailed written statement specifying target markets, marketing programmes, responsibilities, time-scales, controls and resources. Plans may be short term or long term, strategic or operational in focus.

Marketing PR
public relations activities focused on particular products or aspects of their marketing campaigns.

Marketing research
the process of collecting and analysing information in order to solve marketing problems.

Marketing strategy
the broad marketing thinking that will enable an organisation to develop its products and marketing mixes in the right direction, consistent with overall corporate objectives.

Master franchising
a franchisor grants an individual or organisation in a particular country or other trading region the exclusive right to develop a franchise network by sub-franchising within that territory.

Micro segments
segments in B2B markets defined in terms of detailed organisational characteristics such as management philosophy, decision-making structures, purchasing policies, etc.

MIS
marketing information system; the formalised collection, sorting, analysis, evaluation, storage and distribution of marketing data.

Mobile marketing
(also known as m-marketing) see wireless marketing.

Modified re-buy
goods and services purchased relatively infrequently by organisations which might want to update their information on available products and suppliers before making a repeat purchase decision.

Money-based sales promotions
sales promotions that centre around some kind of financial incentive: money-off packs, cash rebate offers, or coupons.

Motivation
the driving forces that make people act as they do.

Multiple sourcing
the sourcing of a particular B2B good or service from more than one supplier simultaneously.

Multivariable segmentation
using a number of different variables to develop a rich profile of a target group of customers.

Negotiation
a give and take process between a buyer and a seller in which precise terms of supply, specification, delivery, price, and after-sales service, etc. are agreed.

New product development (NPD)
the process of seeking and screening new product ideas, analysing their commercial feasibility, developing and test marketing the product and its associated marketing mix, launching the product fully, then monitoring and evaluating its initial progress.

New task purchasing
goods and services that are purchased extremely infrequently by organisations, and involve a high level of formalised information collection and analysis before a purchasing decision is made.

Online marketing
see Internet marketing.

Opt-in
a mechanism by which an individual can signify agreement or specifically request to be included on a telemarketing, direct mail or e-mail marketing list.

Opt-out
a mechanism by which an individual can specifically request to be excluded from or deleted from a telemarketing, direct mail or e-mail marketing list.

Order maker
a sales representatives with responsibility for: (a) finding new customers and making sales to them; and (b) actively increasing the volume or variety of sales to existing customers.

Order taker
a sales representative who either has a set pattern of customer contact or waits for customers to contact him/her when they want to buy.

Out of town
describes large retail sites located away from the town centres so that they are easily accessible to large numbers of car-borne shoppers.

Outsourcing R&D
commissioning other organisations or research bodies to undertake specific research and development projects, rather than handling them in-house.

Own-label brands
branding applied to goods that are produced by a manufacturer on behalf of a retailer or wholesaler who owns the rights to the brand.

Penetration pricing
setting prices low in order to gain as much market share as possible as quickly as possible.

Perception
the way in which individuals analyse and interpret incoming information and make sense of it.

Perishability
a characteristic of services, describing how service products cannot be stored because they are produced and offered at particular moments in time.

Personal selling
interpersonal communication, often face to face, between a sales representative and an individual or group, usually with the objective of making a sale.

Personality
features, traits, behaviours and experiences that make each person a unique individual.

Pioneer advertising
advertising used in the early stages of a product lifecycle to explain what a product is, what it can do and what benefits it offers.

Political and legal environment
the governmental influences, at local, national and European levels, that inhibit or encourage business; the legal and regulatory frameworks within which organisations have to operate, including national and European law, local by-laws, regulations imposed by statutory bodies and voluntary codes of practice.

POS
point of sale; marketing communication activity, for example sales promotions, displays, videos, leaflets, posters, etc., which appears in retail outlets at the place where the product is displayed and sold.

Post-testing
evaluation undertaken during or after an advertising campaign to assess its impact and effects.

Potential product
what the product could and should be in the future to maintain its differentiation.

PR
see Public relations.

Pre-testing
showing an advertisement to a sample of the target audience during its development to check whether it is conveying the desired message in the desired way with the desired effect.

Premium price
a price which is distinctly higher than average to reflect better product quality, exclusivity or status.

Press relations
cultivating good relationships between an organisation and the media as an aid to public relations activities.

Price
a medium of exchange; what is offered in return for something else; usually measured in terms of money.

Price comparison
using price as a means of comparing two or more products in order tojudge: (a) their likely quality in the absence ofother information; (b) which offers the best valuefor money.

Price differential
any difference in the prices charged for the same product to different market segments or in different geographic regions.

Price elasticity of demand
the responsiveness of demand to changes in prices. Elastic products are very responsive, so that a price increase leads to a fall in demand, while inelastic products are very unresponsive and thus a rise in price leads to little or no change in demand.

Price negotiation
bargaining between a buyer and a seller to agree a mutually acceptable price.

Price objectives
what the organisation is trying to achieve through its pricing, measured in financial or market share terms, and closely linked with overall corporate and marketing objectives.

Price perception
a customer's judgement of a price in terms of whether it is thought to be too high, about right or extremely good value for money; this judgement might vary with different circumstances and is often formed in the light of what other alternative products are available.

Price sensitivity
the extent to which price is an important criterion in the customer's decision- making process; thus a price sensitive customer is likely to notice a price rise and switch to a cheaper brand or supplier.

Pricing method
the means by which prices are calculated. Methods can be cost-orientated, demand orientated, or competition-orientated.

Pricing policies and strategies
the overall strategic guidelines for the pricing decision, specifying pricing's role within an integrated marketing mix.

Pricing tactics
short-term manipulation of price to achieve specific goals, as for example in money-based sales promotions.

Primary research
marketing research specially commissioned and undertaken for a specific purpose.

Problem recognition
the realisation, triggered by either internal or external factors, that the consumer or the organisation has a problem that can be solved through purchasing goods or services.

Product development
selling new or improved products into existing markets.

Product items
the individual products or brands that make up a product line.

Product lines
a group of products, closely related by production or marketing considerations, that exists within the overall product mix.

Product manager
the individual within an organisation responsible for the day-to-day management and welfare of a product or family of products at all stages of their product lifecycle, including their initial development.

Product mix
the total sum of all the product items and their variants offered by an organisation.

Product orientation
an approach to business that centres its activities on continually improving and refining its products, assuming that customers simply want the best possible quality for their money.

Product portfolio
the set of different products that an organisation produces, ideally balanced so that some products are mature, some are still in their growth stage while others are waiting to be introduced.

Product positioning
developing a product and associated marketing mix that: (a) is ‘placed' as close as possible in the minds of target customers to their ideal in terms of important features and attributes; and (b) clearly differentiates it from the competition.

Product-based sales promotions
sales promotions that centre around some kind incentive connected with the product: extra product free, BIGIF, or samples.

Promotional mix
the elements that combine to make an organisation's marketing communications strategy: advertising, sales promotion, personal selling, direct marketing and public relations.

Prospecting
in personal selling, finding new potential customers who have the ability, authority and willingness to purchase.

Psychographics
(also known as lifestyle segmentation) defining consumers in terms of their attitudes, interests and opinions.

Publicity
a tool of public relations focused on generating editorial media coverage for an organisation and/or its products.

Publics
any group, with some common characteristic with which an organisation needs to communicate, including the media, government bodies, financial institutions, pressure groups, etc. as well as customers and suppliers.

Pull strategy
a communications strategy that focuses on the end consumer rather than other members of the channel of distribution. Thus a manufacturer might focus on communication to consumers, rather than to wholesalers or retailers, thus helping to pull the product down the channel.

Purchasing policy
an organisation's preferences, systems and procedures for purchasing including,for example, attitude towards favoured or approved suppliers, single or multiple sourcing, and rulesand guidelines.

Push strategy
a communications strategy that focuses on the next member of the channel of distribution rather than on the end consumer. Thus a manufacturer might focus on communication to wholesalers or retailers rather than to consumers, thus helping to push the product down the channel.

Qualified prospects
potential customers who have been screened to check that they meet relevant criteria as potential purchasers, for example checking their financial status or that they do actually needthe product.

Rating scales
a form of multiple choice market research questionnaire question in which respondents are asked to indicate their answer on a scale, for example ranging from 1 to 5 where 5 = ‘strongly agree' and 1 = ‘strongly disagree' with a given statement.

Reach
the percentage of the target market exposed to an advertisement at least once during a specified period.

Reference groups
groups to which an individual belongs or to which the individual aspires to belong, and which influence the individual's motivation, attitudes and behaviour.

Repeat purchase
the purchase and use of a product on more than one occasion by a particular customer.

Retailer
an intermediary which buys products either from manufacturers or from wholesalers and resells them to consumers.

Rolling launch
the gradual launch of a new product, region by region.

Routine re-buy
goods and services purchased frequently by organisations from established suppliers, with little, if any, formal decision-making involved in the repeat purchase.

Sales orientation
an approach to business that centres its activities on selling whatever it can produce, assuming that customers are inherently reluctant to purchase.

Sales potential
the share of a total market that the organisation can reasonably expect to capture.