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Term
Description
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
Ad hoc market
research
Added value
Advertising
Advertising budget
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
Ambush marketing
Ansoff matrix
Augmented brand
The additional customer services and benefits (added value) that are
built around the core product or service offering
Available market
Awareness
Behavioural
segmentation
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Below the line
Benchmarking
Benefit
segmentation
Boston Group
Matrix
Brand
Brand building
Brand equity
Brand extension
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
Brand recognition
Breakeven
Break-even pricing
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
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Business to
business
Buying behaviour
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
Cognitive
dissonance
Combination brand
Competitive
advantage
Competitor
benchmarking
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
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
Cost leadership
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Cross-selling
Using a customers buying history to select them for related offers, e.g.
a car alarm for new car buyers.
Customer demand
Customer loyalty
Customer need
Customer
satisfaction
Customer wants
Decline stage
The last stage of a product's life cycle, during which sales fall rapidly
Demographic
segmentation
Depth interview
Differentiation
Direct mail
Direct marketing
Direct response
advertising
Distribution
channel
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
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E-commerce
Endorsement
Expansionistic
pricing
Extinction pricing
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.
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
Forecasting
Franchising
Full cost plus pricing seeks to set a price that takes into account all
relevant costs of production
Gender
segmentation
Geographic
segmentation
Going-rate pricing
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 maximise the short-term cash flows
and profits from the SBU. This may have the effect of turning Stars into
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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
Income elasticity of
demand
Industrial buyers
Industrial market
Inferior goods
Influencer
Initiator
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 (ABs).
Intensive
distribution
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
Involvement
Labelling
Laggards
The group of consumers who are typically last to buy a new product
Late majority
People who are quite sceptical about new products but eventually adopt
them because of economic necessity or social pressure
Lifestyle
Lifestyle
segmentation
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Logo
Macro forecasting
Mail panels
Manufacturer brand
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
Market challenger
Market
concentration
Market
development
Market entry
Market follower
Market positioning
Market research
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problems relating to the marketing of goods and services
Market segment
Market
segmentation
Market share
Market targeting
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
Marketing audit
Marketing concept
Marketing
intelligence
Marketing plan
Maturity stage
The stage during which a product's sales curve peaks and starts to
decline, and profits continue to decline.
Media analysis
Micro forecasting
Mission
Mission statement
Multi-channel
marketing
Multi-segment
strategy
New product
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product.
Niche marketing
Non-personal
communication
Normal goods
Objectives
Occasion
segmentation
Opportunities
Own-label brand
Packaging
Penetration pricing
Penetration
strategy
Personal selling
Porters Five
Forces Model
Portfolio planning
Positioning
Pre-emptive pricing
Prestige pricing
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opportunistic, high price of price skimming. This is done in order to
evoke perceptions of quality and prestige with the product or service
Price
Price discrimination
Price elasticity of
demand
Price sensitivity
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
Problem/Need
recognition
The first stage in the buying process where the potential customer
recognises that a problem or a need can be met by buying a product or
a service
Product
Product class
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
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
Promotion
Promotional mix
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promotional tools: advertising; direct marketing; personal selling; sales
promotion and public relations
Psychographic
segmentation
Public relations
The planned and sustained effort to establish and maintain goodwill and
mutual understanding between an organisation and its publics
Publicity
Pull 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 out 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
Research
Quantitative
forecasting
Quantitative
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
Quota sampling
Random sampling
Retailers
Sales forecast
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chosen marketing plan and an assumed marketing environment.
Sales promotion
Sample
Secondary research
data
Secondary market data is data that has already been obtained, analysed
and used for other purposes or for general reference
Segmentation
variables or bases
Selective
distribution
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
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
Strategic business
unit (SBU
Stratified sampling
Strengths
Target market
Telemarketing
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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
Test marketing
Threats
Trademark
Legal designation indicating that the owner has exclusive use of a brand
Undifferentiated
marketing
Unique selling
proposition
Vision
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
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