DEFINATIONS IN MARKETING

Brand equity

"Brand equity is a set of assets (and liabilities) linked to a brand's name and symbol that
adds to (or subtracts from) the value provided by a product or service to a firm and/or that
firm's customers. The major asset categories are:

1. Brand name awareness

2. Brand loyalty
3. Perceived quality
4. Brand associations"

“A brand to be strong it must accomplish two things over time: retain current customers
and attract new ones. To the extent a brand does these things well, it grows stronger versus
competition, and delivers more profits to its owners”.

“Brand's power derived from the goodwill and name recognition it has earned over time,
and which translates into higher sales volume and higher profit margins against competing
brands”.

Brand label

“A name, term, design, symbol, or combination of these elements that identifies a

business, product, or service and distinguishes it from its competitors”.

“Label giving the brand name, trademark, or logo”.

Technological Environment

The technological environment consists of those forces that affect the technology and
which can create new products, new markets, and new marketing opportunities.

The technology has a major impact on the business prospects, cuts down the profits and
forces the management to change the course of the business operations. Any change in
technology changes the work cultures, the methods and the systems. It affects the speed of the
operations and gives a boost to the productivity of the productions system. Examples of
technological changes are seen in aviation, electronics, energy, communication, consumer
goods industry, optics,
Medicines and manufacturing.

Cultural environment

The cultural environment includes institutions and other forces that affect the basic values,
behaviors, and preferences of the society-all of which have an effect on consumer marketing
decisions.

Demographic environment

The demographic environment includes the study of human populations in terms of size,
density, location, age, sex, race, occupation, and other statistical information.

Economic environment

The economic environment consists of all factors-such as salary levels, credit trends, and
pricing patterns- that affect consumer spending habits and purchasing power.
Natural environment

The natural environment involves all the natural resources, such as raw materials or energy
sources, needed by or affected by marketers and marketing activities.

Political environment

The political environment includes all laws, government agencies, and lobbying groups that
influence or restrict individuals or organizations in the society.

Promotion

Promotion is one of the four elements of marketing mix (product, price, promotion,
distribution). It is the communication link between sellers and buyers for the purpose of
influencing, informing, or persuading a potential buyer's purchasing decision.

Marketing

Marketing is the process by which companies create customer interest in products or services.
It generates the strategy that underlies sales techniques, business communication, and
business development. It is an integrated process through which companies build strong
customer relationships and create value for their customers and for themselves.

Marketing is defined by the American Marketing Association (AMA) as "the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large."

Marketing Mix

The term "marketing mix" was first used in 1953 when Neil Borden, in his American
Marketing Association presidential address, took the recipe idea one step further and coined the
term "marketing-mix". A prominent marketer, E. Jerome McCarthy, proposed a 4 P classification
in 1960, which has seen wide use.
The marketing mix is probably the most famous marketing term. Its elements are the
basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix
elements are price, place, product, and promotion.

Niche market

A business that focuses on a niche market is addressing a need for a product or service
that is not being addressed by mainstream providers. You can think of a niche market as a
narrowly defined group of potential customers.

Telemarketing

Telemarketing (known as telesales in the UK and Ireland) is a method of direct

marketing in which a salesperson solicits to prospective customers to buy products or services,
either over the phone or through a subsequent face to face or Web conferencing appointment
scheduled during the call.

Advertising

Advertising is a form of communication intended to persuade an audience (viewers,

readers or listeners) to purchase or take some action upon products, ideals, or services. It
includes the name of a product or service and how that product or service could benefit the
consumer, to persuade a target market to purchase or to consume that particular brand. These
brands are usually paid for or identified through sponsors and viewed via various media.
Advertising can also serve to communicate an idea to a mass amount of people in an attempt to
convince them to take a certain action, such as encouraging 'environmentally friendly'
behaviors, and even unhealthy behaviors through food consumption, video game and television
viewing promotion, and a "lazy man" routine through a loss of exercise . Modern advertising
developed with the rise of mass production in the late 19th and early 20th centuries. Mass
media can be defined as any media meant to reach a mass amount of people. Several types of
mass media are television, internet, radio, news programs, and published pictures and articles.

Advertising agency

An advertising agency or ad agency is a service business dedicated to creating, planning

and handling advertising (and sometimes other forms of promotion) for its clients. An ad
agency is independent from the client and provides an outside point of view to the effort of
selling the client's products or services. An agency can also handle overall marketing and
branding strategies and sales promotions for its clients.

Business Marketing

Business Marketing is the practice of individuals, or organizations, including commercial

businesses, governments and institutions, facilitating the sale of their products or services to
other companies or organizations that in turn resell them, use them as components in products
or services they offer, or use them to support their operations. Also known as industrial
marketing, business marketing is also called business-to-business marketing, or B2B marketing,
for short. (Note that while marketing to government entities shares some of the same dynamics
of organizational marketing, B2G Marketing is meaningfully different.)

Consumer advertising

Direct-to-consumer advertising (DTC advertising) usually refers to the marketing of

pharmaceutical products but can apply in other areas as well. This form of advertising is
directed toward patients, rather than healthcare professionals. Forms of DTC advertising include
TV, print, radio and other mass and social media. There are ethical and regulatory concerns
regarding DTC advertising, specifically the extent to which these ads may unduly influence the
prescribing of the prescription medicines based on consumer demands when, in some cases,
they may not be medically necessary.

These are basically nothing but product or service advertisements directed towards the
consumer or the customer as such. Such advertisements can be in the form of national or local
advertisements also.

Direct marketing

Direct marketing is a form of advertising that reaches its audience without using traditional
formal channels of advertising, such as TV, newspapers or radio. Businesses communicate
straight to the consumer with advertising techniques such as fliers, catalogue distribution,
promotional letters, and street advertising.

Direct Advertising is a sub-discipline and type of marketing. There are two main
definitional characteristics which distinguish it from other types of marketing. The first is that it
sends its message directly to consumers, without the use of intervening commercial
communication media. The second characteristic is the core principle of successful Advertising
driving a specific "call-to-action." This aspect of direct marketing involves an emphasis on
trackable, measurable, positive responses from consumers (known simply as "response" in the
industry) regardless of medium.
Direct selling

Direct selling (also called Multi-level marketing) is a retail channel for the distribution of goods
and services. At a basic level it may be defined as marketing and selling products, direct to
consumers away from a fixed retail location. Sales are typically made through party plan, one to
one demonstrations, and other personal contact arrangements.
A text book definition is: "The direct personal presentation, demonstration, and sale of
products and services to consumers, usually in their homes or at their jobs ".

Distribution channel

Chain of intermediaries, each passing the product down the chain to the next organization,
before it finally reaches the consumer or end-user.... This process is known as the 'distribution
chain' or the 'channel.' Each of the elements in these chains will have their own specific needs,
which the producer must take into account, along with those of the all-important end-user.

Channels

 A number of alternate 'channels' of distribution may be available:

 Distributor, who sells to retailers,
 Retailer (also called dealer or reseller), who sells to end customers
 Advertisement typically used for consumption goods

Government market

Consumer group composed of federal, state, and local government units. The
government market in total accounts for the greatest volume of purchases of any consumer
group in the United States, spending hundreds of billions of dollars on goods and services
each year. Although government purchases comprise a wide range of products such as food,
military equipment, office supplies, buildings, clothing, and vehicles, selling to this market
typically involves a great deal of paperwork, financial constraints, bureaucratic barriers, and
awareness of specific political sensitivities.

Growth stage

Product life cycle management (or PLCM) is the succession of strategies used by
business management as a product goes through its life cycle. The condition in which a
product is sold (advertising, saturation) changes over time and must be managed as it
moves through its succession of stages.

Product life cycle (PLC)

Like human beings, products also have their own life-cycle. From birth to death human
beings pass through various stages e.g. birth, growth, maturity, decline and death. A similar
life-cycle is seen in the case of products. The product life cycle goes through multiple
phases, involves many professional disciplines, and requires many skills, tools and
processes. Product life cycle (PLC) has to do with the life of a product in the market with
respect to business/commercial costs and sales measures. To say that a product has a life
cycle is to assert four things:

• Hat products have a limited life,

• Product sales pass through distinct stages, each posing different challenges,
opportunities, and problems to the seller,
• Profits rise and fall at different stages of product life cycle, and
• Products require different marketing, financial, manufacturing, purchasing, and
human resource strategies in each life cycle stage.
 There are six stages in a product's life cycle. Here four of them:

Stage Characteristics
1. costs are high
2. slow sales volumes to start
1. Market 3. little or no competition
introduction stage 4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
1. costs reduced due to economies of scale
2. sales volume increases significantly
3. profitability begins to rise
2. Growth stage 4. public awareness increases
5. competition begins to increase with a few new players in
establishing market
6. increased competition leads to price decreases
1. costs are lowered as a result of production volumes
increasing and experience curve effects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
3. Maturity stage 4. prices tend to drop due to the proliferation of competing
products
5. brand differentiation and feature diversification is
emphasized to maintain or increase market share
6. Industrial profits go down
1. costs become counter-optimal
2. sales volume decline or stabilize
4. Saturation and
3. prices, profitability diminish
decline stage
4. profit becomes more a challenge of
production/distribution efficiency than increased sales

External Market

External Market- Is the market place for the securities, that are not part of or under any
of the jurisdictions of any single country worldwide. They are normally issued outside all
jurisdictions of that country or any country worldwide. They are offered all over the
world and have multiple investors and multiple countries they are working out of at any
given time simultaneously. They have many options in them such as bonds, stocks,
futures, and mutual funds in a global perspective. They are sometimes called the Euro
Market as that is where most of they investors come from or operate there corporations
from.

Product Mix

Product mix is a combination of products manufactured or traded by the same business

house to reinforce their presence in the market, increase market share and increase the
turnover for more profitability. Normally the product mix is within the synergy of other
products for a medium size organization. However large groups of Industries may have
diversified products within core competency. Larsen & Toubro Ltd, Godrej, Reliance in
India are some of the examples.
Brand name

A brand is the identity of a specific product, service, or business. A brand can take many forms,
including a name, sign, symbol, color combination or slogan. The word brand began simply as a
way to tell one person's cattle from another by means of a hot iron stamp. A legally protected
brand name is called a trademark. The word brand has continued to evolve to encompass
identity - it affects the personality of a product, company or service.

Marketing Your Brand (or) Brand marketing

Resources that will teach you how to build a "value-added" brand in today's competitive global
marketplace by creating an effective, integrated strategy involving advertising, marketing,
publicity, and research.

Customer

A customer, also called client, buyer, or purchaser, is usually used to refer to a current or
potential buyer or user of the products of an individual or organization, called the supplier,
seller, or vendor. This is typically through purchasing or renting goods or services. However, in
certain contexts, the term customer also includes by extension any entity that uses or
experiences the services of another. A customer may also be a viewer of the product or service
that is being sold despite deciding not to buy them.
The word derives from "custom," meaning "habit"; a customer was someone who frequented a
particular shop, who made it a habit to purchase goods of the sort the shop sold there rather
than elsewhere, and with whom the shopkeeper had to maintain a relationship to keep his or
her "custom," meaning expected purchases in the future.
The slogans "the customer is king" or "the customer is god" or "the customer is always right"
indicate the importance of customers to businesses - although the last expression is sometimes
used ironically.

Consumer

An individual who buys products or services for personal use and not for manufacture or resale.
A consumer is someone who can make the decision whether or not to purchase an item at the
store, and someone who can be influenced by marketing and advertisements. Any time
someone goes to a store and purchases a toy, shirt, beverage, or anything else, they are
making that decision as a consumer.

Business has only two functions - marketing and innovation.