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MARKET FUNDAMENTALS

Glossary

Blanca Stephani Urrea Patiño

Faculty of Modern Languages

ESCUELA COLOMBIANA DE CARRERAS INDUSTRIALES

Student enrolled to program Market Fundamentals of the Faculty of Modern Languages– ECCI.

Email: tepi.urrea@hotmail.com

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Glossary.

A

Advertising campaign: Is a series of advertisement messages that share a single idea and theme

which make up an integrated marketing communication (IMC). Advertising campaigns appear in

different media across a specific time frame. The critical part of making an advertising campaign is

determining a campaign theme as it sets the tone for the individual advertisements and other forms of

marketing communications that will be used. The campaign theme is the central message that will be

communicated in the promotional activities. The campaign themes are usually developed with the

intention of being used for a substantial period but many of them are short lived due to factors such

as being ineffective or market conditions and/or competition in the marketplace and marketing mix.

Analysis: Is the process of breaking a complex topic or substance into smaller parts to gain a better

understanding of it. The technique has been applied in the study of mathematics and logicsince

before Aristotle (384–322 B.C.), though analysis as a formal concept is a relatively recent

development.

Autonomy: Is a concept found in moral, political, and bioethical philosophy. Within these contexts,

it is the capacity of a rational individual to make an informed, un-coerced decision. In moral and

political philosophy, autonomy is often used as the basis for determining moral responsibility for

one's actions. One of the best known philosophical theories of autonomy was developed by Kant.

In medicine, respect for the autonomy of patients is an important goal of deontology, though it can

conflict with a competing ethical principle, namely beneficence. Autonomy is also used to refer to

the self-government of the people.

B

Barter: Is a system of exchange by which goods or services are directly exchanged for other goods

or services without using a medium of exchange, such as money. It is distinguishable from gift

economies in that the reciprocal exchange is immediate and not delayed in time. It is

usually bilateral, but may be multilateral (mediated through barter organizations) and usually exists

parallel to monetary systems in most developed countries, though to a very limited extent. Barter

usually replaces money as the method of exchange in times of monetary crisis, such as when

the currency may be either unstable (e.g., hyperinflation or deflationary spiral) or simply unavailable

for conducting commerce.

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C

Coins: Are pieces of hard material used primarily as a medium of exchange or legal tender. They are

standardized in weight, and produced in large quantities in order to facilitate trade. They are most

often issued by a government.

Commerce: Is the whole system of an economy that constitutes an environment for business. The

system includes legal, economic, political, social, cultural and technological systems that are in

operation in any country. Thus, commerce is a system or an environment that affects the business

prospects of an economy or a nation-state. It can also be defined as a component of business which

includes all activities, functions and institutions involved in transferring goods from producers

to consumers.

Competition: In economics, competition is the rivalry among sellers trying to achieve such goals as

increasing profits, market share, and sales volume by varying the elements of the marketing mix:

price, product, distribution, and promotion. Merriam-Webster defines competition in business as "the

effort of two or more parties acting independently to secure the business of a third party by offering

the most favorable terms.

Consumer: A consumer is a person or group of people, such as a household, who are the final users

of products or services.

Creation: The act of creating. The fact or state of having been created. The act of investing with a

new office or title. The world and all things in it. All creatures or a class of creatures. Creation The

divine act by which, according to various religious and philosophical traditions, the world was

brought into existence. An original product of human invention or artistic imagination: the latest

creation in the field of computer design.

D

Distribution: The act of distributing or the condition of being distributed;

apportionment. Something distributed; an allotment. The act of dispersing or the condition of being

dispersed; diffusion. Division into categories; classification. The process of marketing and supplying

goods, especially to retailers.

Demand: In economics, demand is an economic principle that describes a consumer's desire,

willingness and ability to pay a price for a specific good or service. Demand refers to how much

(quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a

product people are willing to buy at a certain price; the relationship between price and quantity

demanded is known as the demand relationship. The term demand signifies the ability or the

willingness to buy a particular commodity at a given point of time.

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E

Establishment: The Establishment is a term used to refer to a visible dominant group or elite that

holds power or authority in a nation or organization. The term suggests a closed social group which

selects its own members (as opposed to selection by inheritance, merit or election). The term can be

used to describe specific entrenched elite structures in specific institutions, but is usually informal in

application and is more likely used by the media than by scholars.

Energize: To give energy to; activate or invigorate. To make energetic, vigorous, or active. To give

energy or excitement to (someone or something).

F

Financial institution: In financial economics, a financial institution is an institution that

provides financial services for its clients or members. Probably the most important financial service

provided by financial institutions is acting as financial intermediaries. Most financial institutions

are regulated by the government.

Forgery: Is the process of making, adapting, or imitating objects, statistics, or documents with the

intent to deceive. Copies, studio replicas, and reproductions are not considered forgeries, though they

may later become forgeries through knowing and willful misrepresentations. Forging money or

currency is more often called counterfeiting. But consumer goods may also be counterfeits if they are

not manufactured or produced by the designated manufacture or producer given on the label or

flagged by the trademark symbol. When the object forged is a record or document it is often called

a false document.

Funding: Is the act of providing resources, usually in form of money (financing), or other values

such as effort or time (sweat equity), for a project, a person, a business, or any other private or public

institutions. The process of soliciting and gathering fund is known as fundraising. Sources of funding

include credit, venture capital, donations, grants, savings, subsidies, and taxes. Fundings such as

donations, subsidies, and grants that have no direct requirement for return of investment are

described as "soft funding" or "crowdfunding". Funding that facilitates the exchange of equity

ownership in a company for capital investment via an online funding portal as per theJumpstart Our

Business Startups Act (alternately, the "JOBS Act of 2012") (U.S.) is known as equity crowdfunding.

H

Household: The household is "the basic residential unit in which economic

production, consumption, inheritance, child rearing, and shelter are organized and carried out"; [the

household] "may or may not be synonymous with family". The household is the basic unit of

analysis in many social, microeconomic and government models. The term refers to all individuals

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who live in the same dwelling. In economics, a household is a person or a group of people living in

the same residence.

L

Logical potential user: Is a consumer who is constantly changing a product, ie not always use the

same brand of this. This is induced to obtain the use of a single item or product and it is a real user.

M

Marketing: Is the process of communicating the value of a product or service to customers, for the

purpose of selling the product or service. It is a critical business function for attracting customers.

From a societal point of view, marketing is the link between a society’s material requirements and

its economic patterns of response. Marketing satisfies these needs and wants through exchange

processes and building long term relationships. It is the process of communicating the value of a

product or service through positioning to customers. Marketing can be looked at as an organizational

function and a set of processes for creating, delivering and communicating value to customers, and

managing customer relationships in ways that also benefit the organization and its shareholders.

Marketing is the science of choosing target markets through market analysis and market

segmentation, as well as understanding consumer buying behavior and providing superior customer

value.

Monopoly: A monopoly exists when a specific person or enterprise is the only supplier of a

particular commodity Monopolies are thus characterized by a lack of economic competition to

produce the good or service and a lack of viable substitute goods.

Monopsony: In economics, a monopsony is a market form in which only one buyer faces many

sellers. In the microeconomic theory of imperfect competition, the monopsonist is assumed to be

able to dictate terms to its suppliers, as the only purchaser of a good or service, much in the same

manner that a monopolist is said to control the market for its buyers in a monopoly, in which only

one seller faces many buyers.

N

Need: A need is something that is necessary for organisms to live a healthy life. Needs are

distinguished from wants because a deficiency would cause a clear negative outcome, such as

dysfunction or death. Needs can be objective and physical, such as food, or they can

be subjective and psychological, such as the need for self-esteem. On a social level, needs are

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sometimes controversial. Understanding needs and wants is an issue in the fields of politics, social

science, and philosophy.

O

Oligopoly: An oligopoly is a market form in which a market or industry is dominated by a small

number of sellers (oligopolists). Oligopolies can result from various forms of collusion which reduce

competition and lead to higher costs for consumers.

Oligopsony: An oligopsony is a market form in which the number of buyers is small while the

number of sellers in theory could be large. This typically happens in a market for inputs where

numerous suppliers are competing to sell their product to a small number of (often large and

powerful) buyers. It contrasts with anoligopoly, where there are many buyers but few sellers. An

oligopsony is a form of imperfect competition.

P

Perfect competition: In economic theory, perfect competition (sometimes called pure competition)

describes markets such that no participants are large enough to have the market power to set the price

of a homogeneous product. Because the conditions for perfect competition are strict, there are few if

any perfectly competitive markets. Still, buyers and sellers in some auction-type markets, say

for commodities or some financial assets, may approximate the concept. As a Pareto

efficient allocation of economic resources, perfect competition serves as a natural benchmark against

which to contrast other market structures.

Place: Or Product distribution, is one of the four elements of the marketing mix. Distribution is the

process of making a product or service available for use or consumption by a consumer or business

user, using direct means, or using indirect means with intermediaries.

Prestige: Refers to a good reputation or high esteem, though in earlier usage, it meant showiness.

The level of respect at which one is regarded by others; standing.

Pricing: Is the process of determining what a company will receive in exchange for its products.

Pricing factors are manufacturing cost, market place, competition, market condition, and quality of

product. Pricing is also a key variable in microeconomic price allocation theory. Pricing is a

fundamental aspect of financial modeling and is one of the four Ps of the marketing mix.

Privately held company: Or close corporation is a business company owned either by non-

governmental organizations or by a relatively small number of shareholders or company members

which does not offer or trade its company stock (shares) to the general public on the stock

marketexchanges, but rather the company's stock is offered, owned and traded or exchanged

privately.

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Product: A product is anything that can be offered to a market that might satisfy a want or

need. In retailing, products are called merchandise. In manufacturing, products are bought as raw

materials and sold as finished goods. Commodities are usually raw materials such as metals and

agricultural products, but a commodity can also be anything widely available in the open market.

In project management, products are the formal definition of the project deliverables that make up or

contribute to delivering the objectives of the project. In insurance, the policies are considered

products offered for sale by the insurance company that created the contract.

Promotion: Is one of the market mix elements, and a term used frequently in marketing. The

specification of five promotional mix or promotional plan. These elements are personal selling,

advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how much

attention to pay to each of the five subcategories, and how much money to budget for each. A

promotional plan can have a wide range of objectives, including: sales increases, new product

acceptance, creation of brand equity, positioning, competitive retaliations, or creation of acorporate

image.

Positioning: Is identifying and attempting to occupy a market niche for a brand, product or service

utilizing traditional marketing placement strategies (i.e. price, promotion, distribution, packaging,

and competition). Positioning is also defined as the way by which the marketers attempt to create a

distinct impression in the customer's mind.

What most will agree on is that Positioning is something (perception) that happens in the minds of

the target market. It is the aggregate perception the market has of a particular company, product or

service in relation to their perceptions of the competitors in the same category. It will happen

whether or not a company's management is proactive, reactive or passive about the on-going process

of evolving a position. But a company can positively influence the perceptions through enlightened

strategic actions.

Public administration: Is concerned with the implementation of government policy, and is an

academic discipline that studies this implementation and prepares civil servants for working in the

public service. Public administration is "centrally concerned with the organization of government

policies and programmes as well as the behavior of officials (usually non-elected) formally

responsible for their conduct" Many unelected public servants can be considered to be public

administrators, including heads of city, county, regional, state and federal departments such as

municipal budget directors, human resources (H.R.) administrators, city managers, census managers,

state mental health directors, and cabinet secretaries. Public administrators are public

servants working in public departments and agencies, at all levels of government.

Purchasing power: (sometimes retroactively called adjusted for inflation) is the number of goods or

services that can be purchased with a unit of currency. If one's monetary income stays the same, but

the price level increases, the purchasing power of that income falls. Inflation does not always imply

falling purchasing power of one's money income since it may rise faster than the price level. A

higher real income means a higher purchasing power since real income refers to the income adjusted

for inflation.

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R

Real user: Is one consumer of a product or article of a specific brand, ie, who is always faithful to

this.

Rest of the world: Is an open economy in which there are economic activities between domestic

community and outside, e.g. people, includingbusinesses, can trade in goods and services with other

people and businesses in the international community, and flow of funds as investment across the

border. Trade can be in the form of managerial exchange, technology transfers, all kinds of goods

and services. Although, there are certain exceptions that cannot be exchanged, like, railway services

of a country cannot be traded with another to avail this service, a country has to produce its own.

This contrasts with a closed economy in which international trade and finance cannot take place.

S

Sale price: The price of a good or service that is being offered at a discount. The sale price can be

calculated by subtracting the discount percent from 100, converting that number into a decimal, and

multiplying the decimal by the normal price of the good.

Self-sufficiency: (also called self-containment) is the state of not requiring any aid, support, or

interaction, for survival; it is therefore a type of personal or collective autonomy. On a national scale,

a totally self-sufficient economy that does not trade with the outside world is called an autarky. The

term self-sufficiency is usually applied to varieties of sustainable living in which nothing is

consumed outside of what is produced by the self-sufficient individuals.

Selling: Is offering to exchange an item of value for a different item. The original item of value

being offered may be either tangible or intangible. The second item, usually money, is most often

seen by the seller as being of equal or greater value than that being offered for sale.

Service: In economics, a service is an intangible commodity. That is, services are an example of

intangible economic goods. Service provision is often an economic activity where the buyer does not

generally, except by exclusive contract, obtain exclusive ownership of the thing purchased. The

benefits of such a service, if priced, are held to be self-evident in the buyer's willingness to pay for it.

Public services are those, that society (nation state, fiscal union, regional) as a whole pays for,

through taxes and other means.

Smuggling: Is the illegal transportation of goods or persons, such as out of a building, into a prison,

or across an international border, in violation of applicable laws or other regulations.

Supply: In economics, supply is the amount of some product producers are willing and able to sell at

a given price all other factors being held constant. Usually, supply is plotted as a supply curve

showing the relationship of price to the amount of product businesses are willing to sell.

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Stock exchange: Is a form of exchange which provides services for stock brokers and traders to

trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and

redemption of securities and other financial instruments, and capital events including the payment of

income and dividends. Securities traded on a stock exchange include shares issued by

companies, unit trusts, derivatives, pooled investment products and bonds.

T

Thought: Can refer to the ideas or arrangements of ideas that result from thinking, the act of

producing thoughts, or the process of producing thoughts. In spite of the fact that thought is a

fundamental human activity familiar to everyone, there is no generally accepted agreement as to

what thought is or how it is created.

Trade: Also called goods exchange economy is the transfer the ownership of goods from one person

or entity to another by getting something in exchange from the buyer. Trade is sometimes loosely

called commerce or financial transaction or barter. A network that allows trade is called amarket.

The original form of trade was barter, the direct exchange of goods and services. Later one side of

the barter were the metals, precious metals (poles, coins), bill, paper money. Modern traders instead

generally negotiate through a medium of exchange, such as money. As a result, buying can be

separated from selling, or earning. The invention of money (and later credit, paper money and non-

physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral

trade, while trade between more than two traders is called multilateral trade.

Transport or transportation: It’s the movement of people, animals and goods from one location to

another. Modes of transport include air, rail, road,water, cable, pipeline and space. The field can be

divided into infrastructure, vehicles and operations. Transport is important since it enables trade

between people, which in turn establishes civilizations.

Trend: It`s the general direction in which something tends to move. A general tendency or

inclination. Movement or prevailing movement in a given direction.

W

Warehouse: Is a commercial building for storage of goods. Warehouses are used

by manufacturers, importers, exporters, wholesalers, transportbusinesses, customs, etc. They are

usually large plain buildings in industrial areas of cities and towns and villages. They usually

have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for

the loading and unloading of goods directly from railways, airports, orseaports. They often

have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded

into pallet racks. Stored goods can include any raw materials, packing materials, spare parts,

components, or finished goods associated with agriculture, manufacturing and production.

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Wish: A wish is a hope or desire for something. Fictionally, wishes can be used as plot devices. In

folklore, opportunities for "making a wish" or for wishes to "come true" or "be granted" are themes

that are sometimes used.

Y

Yield: The term yield describes the amount in cash that returns to the owners of a security. Normally

it does not include the price variations, at the difference of the total return. Yield applies to various

stated rates of return on stocks (common and preferred, and convertible), fixed income instruments

(bonds, notes, bills, strips, zero coupon), and some other investment type insurance products (e.g.

annuities).

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