marketing a z

8/2/2019 Marketing a Z

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Marketing A-Z

A comprehensive dictionary

Compiled by :

Prof. Mahesh Soni

IPER PGDM


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AAAAABC Method

ATTENTION, BENEFIT, CLOSE sales method, where the customer's Attention is

attracted, the salesman then shows the Benefits of the product to the customer, andfinally Closes the deal.

Account Executive

Employee usually in a service industry or an advertising company who looks after

certain customers/clients or who is a liaison between important/key customers and

the company.

AIDA

ATTENTION, INTEREST, DESIRE, ACTION. This model shows stages of

consumer attention towards an ad/product.

Ad Click Rate

Sometimes referred to as "click-through," this is the percentage of ad views (see

definition) that resulted in an ad click.

Adoption

This is the mental stage through which an individual consumer passes from first

hearing about an innovation to final trial or consumption.

Ad spend

The money spent on an advertisement or an ad campaign.

Advertainment

Create content that is centered on customer preferences and is entertaining. Then

leverage the content, using a soft-sell technique to push products and services.

Identifying your market and establishing a meaningful relationship using relevant

and entertaining content is a compelling tactic for creating loyal customers.Advertising

Any paid form of non-personal presentation and promotion of ideas, goods or

services by an identified sponsor.

Advertising page exposure

A measure of the opportunity for readers to see a particular print advertisement.

Advertising Plan

An explicit outline of the goals of the ad campaign; programme and methods to

achieve, and measures to evaluate the success.

Advertorial

A print advertisement which is styled to resemble the editorial format and typeface

of the publication in which it runs. Similar to infomercial.Agent

A wholesaler who represents manufacturers or end-consumers on a relatively

permanent basis, performs only a few functions, and does not take title to the goods.

Aisle

Passageway between the shelves of products on display in a supermarket.

Ala Carte Services

This is used in Agency slang, wherein other than providing all advertising services

for one price, a client can choose which exclusive service he wants from the agency.


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All-You-Can-Afford Method

A promotional budgeting technique in which a marketer first allots funds for each

element of the marketing strategy mix except promotion. Whatever funds are left

over are placed in a promotional budget.

Ambient Media

The media choice for advertisers and their agencies, that was once dominated by the

"big five" (television, press, posters, cinema and radio), is now being supplemented

by a fledgling group of 'non-traditional out of home' media known collectively as

ambient media.

Ambush Marketing

Linking a promotion campaign to an event (such as a sporting contest which is

sponsored by another marketer or manufacturer, sometimes even a competitor)

without paying a fee. Gaining from another's ad spend.

Armchair Research

Searching for information that has already been compiled and published in referencebooks such as directories. Also known as Desk Research.

Artificial Obsolescence

Deliberately making old models seem out of date by bringing out new ones with

changes and additional features, which will attract the customer. E.g. Gillette and

Sony practice artificial obsolescence by introducing new models and variants

making the old ones look obsolete. [Gillette Sensor Excel was the old one while

Mach III is new]

Assortment

Range of goods sold. Assortments could be at any intermediation level, like from the

factory end by the manufacturer or in the retail store by the marketer.

Assortment DisplayAn interior display in which a retailer exhibits a wide range of merchandise for the

customer. It may be open or closed.

Asynchronous Communications

Messages that can be sent and received at any time, without any direct connection

between the sender and the recipient.

Atmospherics

Creating an overall image of a company through the design of its premises and

products. E.g. Every McDonalds' outlet is renowned for its pleasing atmospherics.

ATR

AWARENESS, TRIAL, REPEAT. Model showing stages in the effects of

advertising on the consumer, where the customer becomes aware of the product,buys it once to try it and then buys it again when he finds it is satisfactory.

Attitude

Attitude is a learned predisposition to behave in a consistently favourable or

unfavourable way with respect to a given object.

Audit Bureau of Circulations (ABC)

A company that audits the circulation of print publications, to insure that reported

circulation figures is accurate.

Automatic Markdown Plan

Controls the amount and timing of markdowns on the basis of the length of time

merchandise remains in stock.


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Automatic Reordering SystemOrders merchandise when stock-on-hand reaches a pre-determined reorder point. An

automatic reorder can be generated by a computer on the basis of a perpetual

inventory system and reorder point calculations.

BBBBBaby Boom

The major increase in the annual birth rate in the U.S.A following World War II and

lasting until the 1960s. The Baby Boomers, born between 1946 and 1964, now

moving into middle age are a prime target for marketers.

Backlit

It describes an out-of-home display where the advertising message is printed on

translucent plastic and backlit with fluorescent bulbs.

Bait and Switch

A strategy in which products are sold or advertised, priced at a loss, to attract traffic

or customers into the store, so that they switch to the other profitable brands or

products.

Behavioural Segmentation

Dividing a. market into groups based on consumer knowledge, attitude, or response

to a product.

Benefit Associations

A direct link to the benefits of the product. For instance, the benefits of using the

body -building equipment should influence attitudes towards extension.

Benefit SegmentationDividing the market into groups according to different benefits that consumers seek

from the product.

Bifurcated Retailing

Denotes the decline of middle-of-the-market retailing due to the popularity of both

mass merchandising and positioned retailing.

Billings

Total amount charged to clients, including the agency commission, media costs,

production costs, etc

Brand

A name, term, sign, symbol, jingle, or design, or a combination of these, intended to

identify the goods or services of one seller or group of sellers and to differentiatethem from those of competitors.

Brand Alignment

A four-step process developed by Enterprise IG, which provides a methodology by

which organisations can ensure that all their actions are in tune - or 'aligned' - with

their brand. It fills the missing link between bold and brave brand promises and real

business actions.

Brand Architecture

Brand architecture provides the blueprint for marketing decisions. Brand

Architecture is the pictorial depiction of each relationship within and across the

family of brands. Five dimensions define it - the brand portfolio, the roles of the


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portfolio brands, product-market context roles, the structure of the portfolio and

portfolio graphics.

Brand AssociationsThe feelings, beliefs and knowledge that consumers (customers) have about brands.

These associations are derived as a result of experiences and must be consistent with

the brand positioning and the basis of differentiation.

Brand Audit

A specific examination of all aspects of the firm's brand.

Brand Dynamics

Brand Dynamics correlates the relationship of the individual with the brand at its

core, taking into account Pareto's principle that few customers contribute to a large

part of the sales.

Brand Equity

The value of a brand based on the extent to which it has high consumer loyalty,

name awareness, perceived quality, strong brand associations, and other assets suchas patents, trademarks and channel relationships.

Brand Extension

Using a successful brand name to launch new or modified product in new category.

E.g. Bic introducing disposable razors under the same popular brand name Bic for

disposable ball-pens.

Brand IdentityThe outward expression of the brand, including its name and visual appearance. The

brand's identity is its fundamental means of consumer recognition and symbolises

the brand's differentiation from competitors.

Brand Image

A set of values and beliefs that consumers possess about a particular brand.Brand PersonalityThe attribution of human personality traits (seriousness, warmth, imagination, etc.)

to a brand as a way to achieve differentiation. Usually done through long-term

above-the-line advertising and appropriate packaging and graphics. These traits

inform brand behaviour through both prepared communication/packaging, etc., and

through the people who represent the brand - its employees.

Brand Position

The entire collection of thoughts a client has in his or her mind about a professional

services firm, service or product learned through contact, experience and

communication. This includes the distinguishing "human" characteristics of a brand

personality (e.g., engaging and friendly, big and dependable). It is a comparativeconcept as to how one brand is perceived relative to others that may be considered.

Brand PositioningThe distinctive position that a brand adopts in its competitive environment to ensure

that individuals in its target market can tell the brand apart from others. Positioning

involves the careful manipulation of every element of the marketing mix.

Brand Promise

The spoken or unspoken expression of the continuing, important and specific

benefits clients connect with a firm, service or product.


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Brand Reinforcement

The goal of brand reinforcement is to enhance the organisation's image in customers'

minds. The organisation uses the Internet to add value to the information it provides

about itself, and to build a good relationship with customers.

Brand Switchers

Refers to consumers who shift brands, due to difference in price or value-added

services provided by competition.

Branded ExperienceBranded Experience involves brands that go beyond being just a product or a

service. Walt Disney adds to the involvement consumers have with it, both on

functional and emotional platforms.

Business Portfolio

The collection of businesses and products that make up the company.

Buyer Decision Process

The stages a buyer goes through in trying to satisfy a need. The series of logicalstages that a prospective buyer goes through when faced with a purchasing decision.

These normally differ for individuals and organisations.

CCanvass samplingTeams travel outdoors in a specific geographical area handing samples to

consumers.

Cash CowsThese are low-growth, relatively high-market share businesses or products. These

require less investment to hold their market share. They also have substantial cashinflows.

Cash Discount

A price reduction to buyers who pay their bills promptly.

Catalogue Marketing

Direct marketing through catalogues that display pictures of available products.

These are mailed to a select list of customers or made available in stores.

Category Killer

Giant specialty stores that carry a narrow but very deep assortment of a particular

line, at low prices, with little to moderate customer service and is staffed by

knowledgeable employees.

Category KillersSpeciality stores are retail stores, which carry a deep assortment of a particular

product line and usually operate on a large scale. Knowledgeable sales personnel

usually man these stores.

Chain stores

Retail stores (usually dispersed over geographic locations) that have common

management, which own and control them. They usually display similar store

layouts, operate in same product categories and have centralized procurement and

inventory management policies.


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Chameleon Brands

Chameleon brands are multi-faceted, have a consistent core, vary and adapt to

different media and situations, and are complex in nature.

Channel

The various methods of marketing and selling a company's offerings. Examples

include indirect channels (e.g., value added resellers, retailers), e-commerce, and

direct sales. Integrated multi-channel strategies that leverage the strengths of each

channel are crucial to achieve speed-to-market advantages.

Channel ConflictIt is disagreement among marketing channel members, or intermediaries on goals

and roles - who should do what, and for what rewards.

Channel Coverage Map

This is the method by which a manufacturer markets its goods. Channel partners are

typically used to provide wider market coverage in a cost effective fashion. The

channel map lays out the markets, products and which partner sells in each crosssection of the market.

Channel Productivity

By increasing the efficiency of a partner's business, their productivity rises and the

total costs associated with sales activity drop to benefit the vendor, partner and

customers.

Circulation

The number of copies of a print advertising medium that are distributed.

Cognitive DissonanceBuyer discomfort caused by post-purchase conflict.

Cohort Branding

Branding a product and positioning it, keeping in focus the common characteristicsof the product cohort, or the set of consumers of similar products.

Collaborative Commerce

Collaborative commerce attempts to bring together employees, customers, and

business partners in order to improve trust, share information, and eliminate any

friction associated with business transactions.

Commercialisation

Introducing a new product into the market.

Competitive Advantage

An advantage a company possesses over its competitors, gained by offering

consumers greater value that is distinct -and superior- from the competitor's offering.

Competitive Marketing StrategiesStrategies that strongly position the company against competitors and that give the

company the strongest possible strategic advantage.

Complex Buying Behaviour

The behaviour demonstrated by a consumer in situations where he relies on

information search as well as on his gut feeling to make his purchase decision of a

brand from an array of "me-too" brands.

Concentrated Marketing

A type of marketing strategy where a firm chooses to focus all its marketing efforts

on one particular market segment.


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Concept Marketing

Marketing of an idea where either there has been no precedent of the product/service

earlier, or the tangible benefit cannot be viewed currently.

Consultative selling

It is all about being both a marketing advisor and a solution provider. It is the

attitude or frame of mind towards the entire selling process. It is all about knowing

the products you sell; your competitor and the market, thereby making suggestions

that are in the customer's best interests.

Consumer Behaviour

The process and activities that people engage in when searching for, selecting,

purchasing, using, evaluating, and disposing of products and services so as to satisfy

their needs and desires.

Consumer Goods

Goods bought by final customers for personal consumption.

Consumer InvolvementIt is a function of urgency of the need, and risk perceived in the purchase and

consumption of the product. The higher the need and the perceived risk, the more

the involvement in that purchase decision, and hence the higher the information

search, and longer the time to decide.

Consumer Market

A market representing all the individuals and households that buy products and

services for their personal consumption.

Consumer orientation BusinessPhilosophy incorporating the marketing concept that emphasizes first determining

unmet consumer needs and then designing a system for satisfying them.

Consumer-oriented MarketingA company that believes that all its strategies should be viewed and organized from

the consumer's point of view.

Consumerism

An organized movement of citizens and government agencies to improve the rights

and powers of buyers in relation to sellers.

Contextual Marketing

Contextual marketing is based on the fact that if a message is delivered in the

context of the consumer's current situation, he will be more favourably tuned to it.

Therefore it is the practice of customising marketing initiatives to increase the

relevance to the customer's context.

Cooperative samplingSeveral samples are packaged and distributed together and their manufacturers share

all costs.

Core Brand ValuesCore Brand Values are values that consumers or people external to the organisation

associate with the brand, which forms a crucial base for fostering brand equity.

Core Competence

Core Competence can be defined as "the singular competence among a portfolio of

capabilities that can lend the company a distinctive and sustainable advantage. A

core competence is something a company does especially well in comparison to its

competitors.


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Country of OriginThe country from which a given product comes. Customers' attitudes to a product

and their willingness to buy it tend to be heavily influenced by what they associate

with the place where it was designed and manufactured.

Cross-Sell

A term used in personal selling that refers to the sale of other or additional products

and/or services to the same customer.

Culture

The complexity of learned meanings, values, norms, and customs shared by

members of a society.

Customer Lifetime Value

The total revenue that can be generated from a customer over his lifetime or that of a

product lifespan, whichever is shorter, less the cost of acquisition and maintenance

of such customers. This revenue may be either directly from him or from those sales

he has influenced. Companies of late have understood the importance of Customerlifetime value and are building relationships with customers.

Customer Satisfaction

A state where the expectations of the buyer meets the product's performance. If the

product's performance falls short of expectations, the buyer is dissatisfied. If

performance matches or exceeds expectations, the buyer is satisfied or delighted.

Customer Satisfaction Measurement (CSM) program

A set of ongoing procedures for measuring customer feedback against customer

satisfaction goals and developing an action plan for improvement.

Customer Service

The way in which the brand meets its customers' needs via its various different

channels (for example, over the telephone or Internet in the case of remote banking,or in person in the case of retail or entertainment).

Customer Value

The difference between the values the customer gains from owning and using a

product and the costs of obtaining the product. Value= Total Benefits-Total Costs

Customer Value Proposition

CVP implies: Offering the right product to your target customers at a price that

is acceptable to them Based on their perception of the value at a cost that allows

you to be profitable.

Customerisation

Making the entire company (all its departments, people, and processes) totally

customer-oriented. The focus is primarily toward ensuring that all the customers andthe entire market of the company is satisfied.

Customization

Altering the product or service to suit the customer's needs. See also Mass

Customization.

D


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DAGMAR

An acronym for Defining Advertising Goals for Measured Advertising Results.

This is an approach to set advertising goals and objectives.

Database marketing

Companies use a variety of tools to develop databases of consumer purchasing

patterns and demographics. These databases are then utilised to develop focused

marketing programmes.

De Facto Brand

De Facto Brand refers to the pioneer in a new category (Xerox in Photocopying

Industry) trying to get the brand through by being synonymously identified to the

categorys main benefit.

Demarketing

Marketing to reduce demand temporarily or permanently- the aim is not to destroy

demand, but only to reduce or shift it.

Demographic SegmentationDividing the market into groups based on demographic variables such as age, sex,

family size, family life cycle, income, occupation, education, religion, race, and

nationality.

Desk Research

A study based on information that has already been compiled or published.

Differential Product AdvantageA feature of a product that is valuable to customers and is not found in other

products of the same category.

Differentiated Marketing

A strategy in which a company targets several market segments and devises separate

offers or market mixes for each.Differentiators

Those aspects of a brand - usually deliberately communicated - that distinguish it

from competing brands

Direct Marketing

A form of non-store retailing that uses advertising to contact customers, who in turn

purchase products without going to retail stores.

Direct-Mail Marketing

Direct marketing through single mailings that include letters, ads, samples, foldouts,

etc. sent to prospects on mailing lists. Also known as salespeople with wings.

Direct-Response Television Marketing

Direct marketing via television, including direct-response television advertising orinfomercials and home shopping channels, like Asian Sky Shop.

Dissonance-Reducing Buying Behaviour

Consumer buying behaviour in situations that are characterised by high involvement

for products that have few perceived differences among brands.

Dumping

The controversial trade practice of selling a product in a foreign market at a lower

price than it commands in the producer's domestic market.


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EElectronic Article Surveillance (Retail)

Involves attaching specially designed tags or labels to products.

Emotional capitalIt has been defined as the feelings and beliefs that motivate people to take action.

Also described as brand value and goodwill.

Emotive Value

Certain words elicit strong cultural or psychological reactions. Names with

"American", "mother" or "family" in them not only evoke positive psychological

responses but can also have warm emotional effects on the hearer.

Employee Star pattern

Employee Star pattern occurs in businesses where employee opinion of the brand is

paramount. For instance, in confectionery and distilleries, the taste test given to

employees and their resultant suggestions would contribute to brand building.

Therefore employees understanding of the brand becomes imperative.

Engels Laws

Differences noted by a Prussian statistician and researcher, Ernst Engel, in how

people shift their spending across food, housing, transportation, health care and

other goods and services categories as family income rises.

Enlightened Marketing

A marketing philosophy holding that a companys marketing should support the

long-run performance of the system; its five principles include consumer-oriented

marketing, innovative marketing, value marketing, sense-of-mission marketing, and

societal marketing.

Ethnographic ResearchA technique borrowed from cultural Anthropology, in which researchers place

themselves in the society under study, in an effort to understand the meaning of

various cultural practices.

Evaluation

The consumer considers whether trying the product makes sense. This consideration

depends on factors as price, income, standard of living, etc.

Evaluative CriteriaThe dimensions or attributes of a product or service that are used to compare

different alternatives.

Event sampling

Samples are given to consumers during an event such as a concert or sporting event.Evoked SetThe various brands identified by a consumer as purchase options or alternatives,

which are actively considered during the pre-purchase evaluation process.

ExclusiveDistributionGiving a limited number of dealers the exclusive right to distribute the companys

products in their territories.

Experience Curve/Learning CurveOver time, there is a drop in the average per unit production cost. This is a result of

accumulated production experience, learning and use of the cost-saving methods of

production, and increased skill and competence at carrying out the task.


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Extender

A tray-like extension that projects outward from a retail store shelf, used for special

displays, or as a means of increasing the regular shelf display. Also known as shelf

extender.

Eye trackingA method for following the movement of a persons eyes as he or she views an ad or

commercial. Eye tracking is used for determining which portions or sections of an

ad attract a viewers attention and/or interest.

FFacings

Depth of rows of a product on a retail display shelf.

Factoring

Converting accounts receivable to cash on hand is quickly becoming one of the

preferred ways to provide immediate cash flow for businesses. This process is

referred to as factoring. A company sells accounts receivables to a 'Factor', who

provides cash immediately. The factor collects payment on the invoices owed to

you. When you factor, you retain complete control and ownership of the company,

yet get the cash you need immediately.

Factory Outlet

A store that is owned and operated by a manufacturer and that normally carries the

manufacturers surplus, discontinued, or irregular goods. This could be located even

at the factory gate.

FadA product or a style that becomes popular suddenly and becomes a craze, but is

short-lived and fades away overnight.

Fair-trade lawA statute (enacted in most states) that permits manufacturers to stipulate minimum

retail prices for their products.

Family BrandingA strategy of using the company name or one flagship product brand name for

branding other products. An example of this is Ponds, which uses its name on

various products: Ponds face wash, Ponds Dreamflower talc, Ponds cold cream, etc.

FMCGs

These include all consumer non-durable goods that are used and purchasedfrequently. Such products include detergents, toilet soaps, toothpaste, shampoos,

creams, powders, food products, confectionery, beverages and cigarettes. These are

also known as PMCGs, (Packaged Mass Consumer Goods).

Focus Group InterviewingIt is a survey method in which around 6 to 8 people are invited to talk in depth with

a trained interviewer about a product, service, or organization. The interviewer

focuses the group discussion on important issues.

Forward BuyingSuper Shoppe, a regional supermarket chain made bulk purchases of products during

the trade promotion period but did not pass the discount onto consumers.


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Subsequently, after the expiry of the promotion period, the Shoppe sold products at

the regular price. Known as forward buying, such transactions are commonplace in

regions where the manufacturer has just a handful of retailers.

Fourth Party Logistics (4PL)Fourth Party Logistics is the shared sourcing of supply chain processes with a client

and a teaming partner. Under the direction of an integrator, fourth party logistics

combines resources, capabilities, and technology within its own organisation with

those that complement it, thereby delivering a comprehensive chain solution.

Franchise

A contract between a manufacturer or marketer (franchiser), and an independent

retailer (franchisee) that buys the right to own and operate the business unit and also

gets managerial assistance in return for some consideration.

Freestanding BrandA brand name and identity used for a single product or service in a portfolio, which

is unrelated to the names and identities of other products in the company's portfolio.Freight AbsorptionA pricing system that incorporates transportation costs by allowing a buyer to deduct

shipping expenses from the price paid for the goods.

Full Service AgencyAn advertising agency that offers clients a full range of marketing and

communications services including the planning, creating, producing, and placing of

advertising messages and other forms of promotion.

Functional DiscountA discount offered by the seller to specific channel members who perform certain

functions such as selling, storing, and record keeping.

GGatekeepers

People in the organisations buying centre who control the flow of information to

others. Marketing

Generics

Former brand name now shifted to the product category. Its brand equity is lost. E.g.

Xerox.

Geographic Specialisation

One method of organising selling activities, in which each salesperson is assigned aspecific geographic area, called a territory, in which to sell.

Global Brand ManagementIt implies crafting a global brand strategy, by a firm by deciding whether it needs to

develop a distinct strategy for international markets or develop one, which is in tune

with the organisational structure and ethos. It also decides about the issue of balance

between regional local and global brands, simultaneously maintaining consistency

across markets without diluting the brand.

Global MarketingThis involves marketing on a worldwide scale, with a centrally coordinated

marketing strategy that targets broad consumer groups globally.


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Going Rate PricingHere pricing of a product is done according to the price that is prevalent in the

market (going rate). Price is fixed according to the price offered by the competitor,

irrespective of the cost of production.

Global Sourcing

Contracting to purchase goods and services from suppliers worldwide.

Good Value Strategy

This is a method of pricing products, which directly hits at premium pricing by

providing quality products at lower prices.

Greening the supply chainWhen companies use life cycle analysis of their products and processes in order to

reduce adverse environmental impact on the supply chain. Even the suppliers are

chosen based on whether they are certified as environment friendly or not.

Gross Rating Points (GRP)

The sum of the ratings of a media schedule.Growth StageThe second stage of the PLC or product life cycle, where the sales of a product

category rise, and competition is fierce, resulting in maybe higher expenses and

therefore even lower margins.

Growth-Share Matrix Model

For marketing strategy with various categories of product-based present

performance and industry growth rates. SBUs (Strategic Business Units) are

classified as stars, cash cows, question marks, or dogs.

HHabitual Buying BehaviourThis Occurs when there is low consumer involvement and little or no brand

difference. For instance, salt, where there is low involvement in the product category

and all brands of salts appear the same, as they provide nothing new.

Handled risk

Handled risk is the amount of conflict a product or retailer causes when the

consumer selects a brand/store in a particular buying situation.

Hard SellAggressive selling of the products/services by the salesperson. The salesperson

pushes the product in this type of selling.

Harvest StrategyAccording to the General Electric business screen, a strategy of restraining new

expenditures on a strategic business unit that lacks an attractive market and a strong

business image.

HeterogeneityA characteristic of service that indicates that each unit of a service is different from

other units.

Hierarchy of EffectsThe stages a buyer goes through while purchasing a product are awareness,

knowledge, liking, preference, conviction and purchase (resembles the AIDA model,

- Awareness, Interest, Desire and Action).


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High Voltage BrandA High Voltage Brand is defined as one, which has the immense capacity to benefit

from its own actions in the marketplace. A high voltage brand has the power of

sustainability and can therefore resist competitive reactionary strategies.

HIPS (High Involvement Products and Services)Those products and services whose purchases are complex and risky. Consumers of

these products and services engage in an extensive information search prior to

making a decision. Examples are automobiles, mutual funds, and shares.

Home Shopping ChannelsThis is a form of direct response advertising whereby television channels are

dedicated to sell goods and services. For instance: Asian Sky Shop, and TSN in

India.

Horizontal ConflictA channel conflict occurring among middlemen at the same level of distribution. For

instance, conflict amongst retailersHorizontal Marketing SystemAn arrangement in which two or more companies at one level join together to

explore a new marketing opportunity. This system is very advantageous as both

companies can make use of each others resources. The proposed alliance between

P& G and Godrej was to use horizontal marketing system, to mutual advantage.

Hub and SpokeA distribution system where products are shipped from one central warehouse or

plant to many different locations.

Hybrid Marketing ChannelMulti-channel distribution system in which a single firm sets up two or more

marketing channels to reach one or more customer segments. These channels couldbe even combinations of different levels.

HypermarketAn exceedingly large-scale retail institution that has a very broad product

assortment, across all categories, low prices and customer services.

IIdea GenerationA systematic search for new product ideas. A company has to generate many new

ideas to either keep up with competition, or have a stock of ideas ready when the

need arises. The search for new ideas can be from within the company or fromoutside sources. Gillette is one company that constantly motivates its employees to

come up with new ideas.

Impulse BuyingA low involvement decision-making purchase made with little or no advance

planning. E.g. Chocolates, and ice creams are usually purchased on an impulse.

Incremental ProfitDuring a promotion campaign, the mark-up on each unit, multiplied into the

additional number of units the company expects to sell as a result of the promotion.

Independent Off-price Retailers


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Independent Off-price Retailers are owned and run by entrepreneurs or is a division

of a larger retail corporation. Example: Crossword owned by India Book House.

Indifference ZoneThe difference between the customers desired price and the acceptable one (which

could be a noticeably higher price) is the zone of indifference. Within its area,

customers are indifferent to any price change.

Influencers

They are participants in the business buying decision process, who help in providing

information regarding purchase and evaluating alternatives available.

InfomediariesPlayers who specialise in collecting consumer information and add value to the

transactions between consumers and vendors.

InfomercialsThirty-minute commercials that appear to an average consumer as documentaries

and thus command more active and attentive viewing than obvious commercialswould receive. Generally for products, where the perceived risk associated with the

product is high, or for highly technical products like PCs, and Servers.

Information SearchThe stage in the buyer decision process, when the buyer is motivated to search for

more information actively The extent to which a buyer searches for information will

depend on the intensity of need, the ease of obtaining information, the value he

places on additional information, and the satisfaction derived.

Informative AdvertisingInformative Advertising is used to create awareness for a new product. Most

companies follow this method during their launch of new products.

Inherent riskInherent risk is the latent risk that a product or a retailer holds for a consumer.

Innovation

A new product, new service, new idea or a new practice, which has an effect on

consumers established usage patterns. While an invention is a new technological

advancement, an innovation is a commercially viable invention. Consumers are

willing to pay for the utility of this product.

Innovative MarketingA principle of enlightened marketing, which requires the company to constantly

seek real product and marketing improvements, to sustain itself.

Inseparability

A major characteristic of services the service consumption cannot be separatedfrom the service providers.

Insertion OrderThe form or document sent to a publication that contains information relating to an

ad's placement--i.e. its size, rate, frequency, date, etc.

Instant BrandingInstant branding both puts into question and calls on the advertising business's

ability to manage brands urgently, cleverly, spontaneously, and within a flexible

strategy. There may only be hours to control a brand's destiny.

Institutional Advertising


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Advertising that tries to create a favourable impression and build goodwill about the

organisation. For instance, Tatas employees ad.

IntangibilityA major characteristic of services services cannot be seen, felt, heard or smelled

before purchase.

Integrated DirectMarketingDirect marketing campaigns that make use of multiple vehicles and stages to

improve consumer response rates.

Integrated Logistics ManagementThe logistics concept that emphasises teamwork, both inside the company and

among all the marketing channel organisations, to maximise the performance of the

entire distribution system

Integrated Marketing Communications (IMC)Usage of various communication channels to convey a clear, concise, and crisp

message to the target audience. For instance, using advertising, sales promotion,personal selling and direct marketing collectively to deliver a message.

Intensity of DistributionThe number of middlemen used by a manufacturer at a particular level.

Intensive DistributionA strategy in which a producer sells its product through every available retail outlet

in a market, wherever a consumer might look for it. For instance, soaps are now

available everywhere right from chemists to supermarkets to departmental stores to

malls.

Interactive MarketingIn simple terms, it means that the quality of service provided, is dependent on the

interaction between the buyer and the seller.Intermarket SegmentationDeveloping segments of consumers who have similar needs and wants, who follow

the same buying behaviour, but are located in different countries. For instance,

buying habits do not differ much from India to Sri Lanka.

Internal MarketingTreating the employees within the company as employees, leading toward

satisfaction and delight of the external customer. Such honing of internal processes,

trains them to focus towards customer-oriented and satisfaction systems.

International MarketingThe activities of an organisation to market its product in one or more countries. e.g.

MNCs. MarketingInvolvementIt is a function of risk perceived in the purchase and consumption of the product.

The higher the risk perceived, the more the involvement in that purchase decision,

and hence the higher the information search.

Involvement LevelsThe amount of time and effort the consumer spends while purchasing a

product/service.


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JJ.N.D. (Just Noticeable Difference)The minimal difference that can be detected between two stimuli.

J.N.N.D. (Just Not Noticeable Difference)The maximal difference that cannot be detected between two stimuli.

Joint VentureA partnership arrangement in which a foreign operation is owned in part, by a

domestic company and in part by a foreign company.

KKey AccountA key account is a customer who contributes significantly to the companys

business, and requires the special attention and focus of an experienced salesman.

Key accounts constitute 20% of customers who contribute to over 80% of acompanys revenue.

Kinked DemandA condition in which total revenue of the firm moves sharply in inverse direction to

a products price, in relation to the prevailing market price.

Kiosk

Small wooden or iron shelter, for selling goods out of doors: newspaper kiosk,

telephone kiosk, cigarette and paan kiosks, etc.

Kiosk MarketingKiosks are one-stop booths, (which may or may not be mechanised) where you can

get all the information about the various products of the company. For example,Hallmark uses kiosks to create personalised cards.

LLabel

Labels are identification tools. These are simple tags of information, sometimes with

graphics, attached to a product, that form a part of the packaging. E.g. the label on

the Milkmaid tin carries critical deciding information about the company.

Laggards

They are the fifth and last, among the market segments in the social diffusion

process to take up the product. They tend to resist change, are risk-averse, and clinghardest to tradition.

Late MajorityA group of sceptical consumers who are slow in adopting an innovation but

eventually do so, either to save money or due to peer pressure. They are the fourth

among the market segments in the social diffusion process to adopt the product.

Lead TimeThe amount of time between the start of making a TV/radio buy and the on-air date

Licensing

An arrangement in which one firm sells to another the rights to use its brand name,

equity, trademark and patent in return for a fee or royalty.

Limited ServiceRetailers


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When compared to other retailers, they provide more sales assistance since they

carry more shopping goods about which customers need information. Examples are

Lifestyle or Shoppers Stop.

Linchpin BrandA brand that holds the entire organisation together. It is a number one brand that

indirectly influences a business area providing a strong base for customer loyalty.

Cadburys Dairy Milk is a linchpin brand for Cadburys as it controls a critical

segment in the confectionary industry.

Line ExtensionA successful brand that increases the types or levels of its portfolio in a specific

product line to take advantage of the existing equity. Example: Gillette has

successfully managed to use line extension for its shavers.

Lineage

A term expressive of advertising volume or content.LIPS (Low Involvement Products and Services)Those products and services whose purchases are routine and unimportant in nature.

Consumers of these products and services engage in little information search prior to

making a decision. For example, stationery items like pens, pencils, etc.

List of Values (LOV)Research at the Survey Research Centre at the University of Michigan has identified

nine basic values that could motivate consumption and are hence related to purchase

behaviour. They are: Self Respect; Self Fulfillment; Security; Sense of Belonging;

Excitement; Sense of Accomplishment; Fun and Enjoyment in life; Well Respected;

Warm relationships.

Living the brandThe company must focus, align and motivate the entire organisation to embrace a set

of contemporary beliefs that support brand values. Living the brand requires the

organisation to keep stretching for more, to create internal brand loyalty.

Location PricingA company using location pricing, charges different prices in different areas. E.g.

Theatre groups change their prices depending on the location.

Loss LeadersA few lead items, offered by a store at extremely low prices, to stimulate interest on

the part of bargain-hunters.

Logistics

Marketing logistics involves planning, implementing, and controlling the physicalflow of materials and final goods from points of origin to meet customer

requirements at a profit.

Loss-Leader PricingA pricing and promotional strategy in which temporary price cuts are made on a few

items to attract traffic (customers) into the store. The objective is bait-and switch, to

increase the overall spend of these customers within the store by spending on

volumes or on other higher-priced products.

Low InvolvementA purchase decision, which is so quick, that it ignores the other stages and jumps

directly from need to purchase. This generally happens when there is low risk


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perception, and hence hardly any information search or comparative shopping

required before the purchase.

Low Voltage BrandA Low Voltage Brand would be one whose market share is declining and will have

to put in tremendous effort to stand the same level as competition.

MMarkdown priceA reduction in the original or previous maximum retail price of the

goods/merchandise. Usually used as a component of Every Day Low Pricing

programme.

Market ChallengerA runner-up firm that is fighting hard to increase its market share in the industry.

Market FollowerA runner-up firm that wants to hold its share without upsetting competition in the

industry.

Market LeaderThe firm with the largest market share in the industry.

Market MavensIndividuals whose influence stems from a general knowledge or market expertise

that leads to an early awareness of new products and services.

Market PenetrationPricing Setting a low price for a new product in order to attract a large number of

buyers and a large market share. Britannias Chekkers followed this strategy.

Market PositioningArranging for a product to occupy a clear, distinctive, and desirable place relative to

competing products in the minds of the target consumers. The process of

formulating competitive positioning for a product using a detailed marketing mix.

Market SkimmingPricing Setting a high price for a new product to skim maximum revenues, layer by

layer from the segments that are willing to pay the high price; the company makes

fewer but more profitable sales.

Market TargetingThe process of evaluating each market segments attractiveness and selecting one or

more segments to enter.

Marketing AuditA comprehensive, systematic, independent, and periodic examination of a

companys environment, objectives, strategies, and activities to determine problem

areas and opportunities and to recommend a plan of action to improve the

companys marketing performance.

Marketing Communications Mix (Promotion Mix)The specific mix of advertising, personal selling, sales promotion, and public

relations that a company uses to pursue its advertising and marketing objectives.


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Marketing Concept

The marketing management philosophy that holds that achieving organisational

goals depends on determining the needs and wants of target markets and delivering

the desired satisfaction more effectively and efficiently than competitors.

Marketing IntelligenceEveryday information about developments in the marketing environment that helps

managers prepares and adjusts marketing plans.

Marketing IntermediariesFirms that help the company to promote, sell, and distribute its goods to final

buyers; they include resellers, physical distribution firms, market service agencies,

and financial intermediaries.

Marketing Mix (The 4 Ps)The set of controllable tactical marketing tools - product, place, price, and promotion

- that the firm blends to produce the response it wants in the target market.

Marketing WebsiteThe Websites used to engage consumers in an interaction that makes the consumers

come closer to purchasing.

Markups

The difference between the final cost of the product and the selling price.

Alternatively, it can also be referred to as the amount added to the cost of product.

Mass CustomisationThe cost-efficient mass production of goods and services in lot sizes of just a few at

a time. Mass customisation is not the same as customisation. Customisation involves

the production of a product from scratch to a customized specification, whereas

mass customisation is the assembly of a product or the rendering of a service from

pre-configured modules or components.Master FranchiserThe master franchiser acts as a mediator between the franchiser and the franchisee in

the foreign market.

Media integrationMedia integration is advertising that delivers a similar message with the same look

and feel, and aims to a build a brand over the long term across both online and off-

line media.

Media SchedulingPlanning all the details of advertising and promotion to be used in a campaign, like

timing, and positioning of ads.

MerchandisingOrganising the inventory, display and promotion of goods in retail outlets.

Micro-marketingThe practice of tailoring products and marketing programmes to suit the tastes of

specific individuals and locations - includes local marketing and individual

marketing.

Modified RebuyIt is a situation where the buyer wants to modify the product specifications, prices,

terms, or suppliers.


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NNeed statesNeed states can be defined as those triggers rational, emotional and subconscious

that compel consumers to make a product choice. To put it elaborately, need-stateswork on the principle that everything is dynamic. The product choice made by the

consumer depends upon the situation in which he finds himself, his mood, the time,

his attitude, and the environment.

New Product DevelopmentThe development of new products, product improvements, modifications and new

brands through the R&D process.

Non-personal Communication ChannelsMedia that carry messages without personal contact or feedback, including major

media, atmospheres, and events.

North American Free-Trade Agreement (NAFTA)An accord to remove trade barriers among Canada, Mexico, and the United States.

OObservational ResearchIt is the gathering of primary data by observing relevant people, actions, and

situations.

Occasion SegmentationThe division of market into groups according to occasions when buyers get the idea

to buy, make their purchase, or use the purchased item.

Online AdsIt is the way of sending ads on-line while customers are surfing the net, which

include banners, pop-up windows, tickers, and road blocks.

Online DatabasesThe collection of data and information available from on-line commercial sources or

Internet.

Online MarketingThe marketing of goods/services through interactive on-line computer systems or

Internet.

Online Marketing ResearchThe collection of relevant information through on-line surveys.

Opinion LeaderAny person who can exert influence on others because of his special skills,

knowledge, personality, or other characteristics.

OTS (Opportunity To See)A term used indicating the amount of "frequency" a media audience receives in a

media schedule.


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PPackagingAn integral part of the branding process, which involves the design and production

of the container, package or wrapping of a product.

Paretos Principle (80-20 rule)This states that a small percentage of customers may account for a large percentage

of value of a companys sales or of a companys profit (80% of the profit comes

from only 20% of the customers).

Patent

Its an official right showing that a person has the exclusive right to make and sell an

invention.

Perceived Pricing

A consumer perceives a price as high, low or fair, in relation to the perceived orexperienced value of the product.

Perception

The process by which people select, organise and interpret information to form an

understandable and meaningful picture of the world.

Perceptual MappingGraphic Analysis and presentation of where actual and potential customers place a

product or supplier in relation to other products and suppliers. Most perceptual maps

show only two dimensions at a time, for example price on one axis and quality on

the other.

Perfect MarketIt is a perfectly competitive market is one in which there is a large number of firms,

each with a very small share of the market, producing a homogeneous product, with

firms and consumers possessing perfect information, and with free entry to and exit

from the industry.

Peripheral Brand AssociationsThe logo, colour and packaging are the peripheral associations. These bring about a

surface level of similarity between the parent brand and the extended one.

Perishability

A characteristic of services and some products. It means that the product or service

cannot be stored for later sale or consumption.

Personal Communication ChannelsThe medium through which people communicate with each other, including face-to-

face, person-to-audience, over the telephone, or through the mail.

Personal SellingIt is the form of presentation by the firms sales force for the purpose of making

sales and building customer relationships.

Persuasive AdvertisingThe form of advertising used to build a selective demand for a particular

product/service by persuading the consumer that it offers the best quality for their

money.


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PEST

Factors Any firms strategy formulation is preceded by environmental analyses.

Under macro-environment analysis, companies need to identify and understand the

impact of Political, Economic, Social and Technological factors. These are known as

PEST factors.

Planogramming

Planogramming produces a stocking plan such that merchandise fits on the shelves

and in the fixtures when it arrives at the store; this reduces stocking labour.

Planogramming with intelligence is space management, which requires direct

integration of merchandise and sales data using technology that makes it possible to

minimise the inventory needed to achieve high in-stock levels. That increases sales,

improves inventory turns, and boosts gross margin return on investment (GMROI).

Pleasing ProductsThe products that fetch immediate satisfaction but may disappoint consumers in the

long run.PMCG (Packaged Mass Consumer Goods)These include all consumer non-durable goods that are used and purchased

frequently. Such products include detergents, toilet soaps, toothpaste, shampoos,

creams, powders, food products, confectionery, beverages and cigarettes. These are

also known as Fast Moving Consumer Goods (FMCGs).

Point-of-Purchase (P.O.P.)The place or retail store where a product or service is bought by the customer.

Point-of-Purchase (POP) promotionThe display of ads or demonstration of products at the place of sale. Marketing

Portfolio Analysis A tool by which management identifies and evaluates the various

businesses that makes up the company. MarketingPost-purchase Behaviour The decision process a consumer adopts after a purchase

based on his satisfaction or dissatisfaction. Marketing

Pre-approachIt is the learning process where a sales person learns about a prospect before making

a sales call.

Preferred Brand ValuesPreferred Brand Values refer to attributes that consumers regard as important for a

brand in a given category.

Premium

The goods offered either free or at low cost as an incentive to buy a product. (See

Self-Liquidators)Premium PricingProducing a high-quality product, for the premium or higher income segments, and

charging a high price.

Prestige ValueA commercial name should possess the power to command admiration. Products

with French or Italian names often command such prestige. "Clinque" sounds more

prestigious than "Clinic" and "pasta" is more sophisticated than "noodles". The

selection of certain words or morphemes can contribute prestige value; that is why

"Premier," "Super," and "Ultra" frequently appear in commercial names. Marketing


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Product Adaptation The adaptation of a product to meet local conditions, culture, or

different wants in foreign markets.

Product Bundle PricingThe way of bundling several combined products and offering them at a low cost.

Marketing

Product Life Cycle (PLC)The six stages through which a product goes. It includes product development,

introduction, growth, maturity, saturation, and decline.

Product MixThe set of all product lines and items that a particular seller offers for sale.

Product Sale Joint Venture MethodThe emphasis is on the product, which the seller has to sell, but is done in such a

fashion that it involves the customer's participation. There is an exchange of

information regarding the customer's specific product needs and the unique strengths

of your product. The focus is on the product itself; to figure out how the product canfit the client's stated needs.

Product Sale Unilateral WayHere the seller tells everything he knows about the product to the customer. It is a

one-sided conversation that is presented to the customer, consisting of all the

features and functions of the product. Making a product sale in a unilateral way can

help the customer create divergent thinking.

Product/market Expansion GridThe portfolio-planning tool used to identify company growth opportunities through

market penetration, market development, product development, or diversification.

Prospecting

It is the identification of potential customers by the salesperson.Psychographic SegmentationIt is the division of markets based on psychographics, i.e. the market is divided into

relevant groups based on lifestyle, social class, and personality characteristics.

Psychographics

The study of lifestyles, social class, or personality characteristics. It also includes the

dimensions of AIO (activities, interests, and opinions).

Psychological PricingA pricing technique based on the psychological aspects of pricing and not on

economics.

Pull Strategy

A promotional strategy used to intensify the sales by advertising heavily. Thestrategy leads to the consumers asking retailers for the product, in turn the retailers

order from the wholesalers and the wholesalers demand from the producers.

Push StrategyA promotion strategy used to increase the sales through sales force and trade

promotion that pushes the product through the distribution channel. The producers

push the product to wholesalers, the wholesalers to retailers, and retailers to

consumers.


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QQuestion MarksThese are low-share businesses and products in high-growth markets. These require

a lot of investment just to hold their market share.

RReference PricesThe price used as a comparative index, when a buyer purchases any product/service.

ReinforcementReduction in drive that results from an appropriate consumer response.

Relationship MarketingA marketing concept focusing on value-laden delivery, to enhance a long-term

relationship with the customers.

Research designSeries of decisions that, taken together, comprise a master plan for conducting

marketing research.

Retail conceptThe complex mix of products, merchandising, store format, ambience, service and

the brand image that differentiate a retail store. This is unique from store to store.

Retail ecosystemsAn ecosystem can be described as a community of organisms and its environment

functioning as an ecological unit. In the context of retailing, an ecosystem caters to

the interrelated customer requirements. On offer is a wide array of products and

services to customer segments based on their common situation.Retail EST ModelThe Retail EST and has been devised by the J.C. Williams Group, which states that

to win, a retailer has to be the best at what he promises. For instance, the Biggest

when it comes to Toys is Toys R Us, the cheapest is WalMart, the quickest is

Shoppers Drug Mart, the easiest, the slowest, so on and so forth.

Retail PromotionsAny communication by a retailer that informs, persuades, and/or reminds the target

market about any aspect of that firm.

Retail ReductionsRepresent the difference between beginning inventory plus purchases during the

period and sales plus ending inventory. They should encompass anticipatedmarkdowns, employee and other discounts, and stock shortages.

Retail RenewalIt involves a shift in the concept to address the emerging consumer needs. In some

cases, it even leads to changes in assets modifying, acquiring or even discarding.

SSales ContestA competition open to a companys sales personnel or to prospects, structured to

reward superior performance or unusually large purchases. See Sales Incentive.

Sales Force Automation (SFA)


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Applications of computers and other technologies to improve the efficiency and

competitiveness of the sales function.

Sales Force ManagementThe analysis, planning, implementation and control of sales activities. It includes

setting and designing sales force strategy, recruiting, selecting, training, supervising,

compensating, and evaluating the firms sales people.

Sales IncentiveA reward in excess of salary or commission provided to a salesperson in return for

achieving or exceeding a stated sales goal. See Sales Contest.

Sales officeA manufacturer's facility that serves as a regional office for salespeople, but does not

carry inventory.

Sales orientationBusiness assumption that consumers will resist purchasing nonessential goods and

services with the attitude toward marketing that only creative advertising andpersonal selling can overcome consumers' resistance and convince them to buy.

Marketing

Sales Promotion A variety of short-term incentives to induce trail or purchase of a

particular product or service.

Sales Promotion TrapA spiral that results when a number of competitors extensively use promotions. One

firm uses sales promotions to differentiate its product or service and other

competitors copy the strategy, resulting in no differential advantage and a loss of

profit margins to all.

Sales Quotas

Standards set for salespeople, stating the amount they should sell and how salesshould be divided among the companys product.

Salesperson

An individual acting for a company by performing one or more of the following

activities: prospecting, communicating, servicing, and information gathering.

Sample

A segment of the population selected for marketing research to represent the

population as a whole.

Seasonal DiscountA price reduction to buyers who purchase merchandise or services out of season.

Seasonal Discounts

Discounts offered on products, which display characteristics of seasonal/cyclicaldemands. Discounts are offered to induce purchases during off-season.

Segment MarketingIsolating broad segments that make up a market and adapting the marketing strategy

to match the needs of one or more segments.

Segmentation

The process of dividing the market into distinct subsets of consumers with common

needs or characteristics, in order to target them with a distinct marketing mix.

Segmented PricingSelling a product or service at two or more prices, where the difference in prices is

not based on the differences in cost.


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Selective AttentionA heightened awareness of small stimuli/cues relevant to ones needs or interests.

Also called Selective Perception.

Selective ComprehensionThe perceptual process whereby consumers interpret information based on their own

attitudes, beliefs, motives, and experiences.

Selective DemandThe demand for a particular brand of product or service.

Selective DemandAdvertising that focuses on stimulating demand for a specific manufacturers

product or brand.

Selective Distribution The use of some of the intermediaries who are willing to

carry the companys products.

Selective Exposure

Conscious or subconscious exposure by the consumer to a certain media or message,and the subconscious or active avoidance of others. A process whereby consumers

choose whether or not to make themselves available to media and message

information.

Selective PerceptionA state of heightened awareness of stimuli relevant to ones interests or needs.

Self-managed teamA group of employees who work with little or no supervision.

Seller's marketMarketplace characterized by a shortage of goods and/or services.

Selling agent

An agent-wholesaling intermediary responsible for the entire marketing program ofanother firm's product line.

Selling ConceptThis concept states that if the customer is left alone, he/she may not buy enough of

the companys product. Hence the company must have aggressive selling and

promotional activities.

Selling ProcessThe steps that the salesperson follows when selling, which include prospecting and

qualifying, pre-approach, approach, presentation and demonstration, handling

objections, closing and follow-up.

Selling up

A retail sales technique that tries to convince a customer to buy a higher-priced itemthan he or she had originally intended.

Service

A service is any act or performance that one party offers to another that is

experiential, and doesnt result in the ownership of anything. Services differ from

goods on four counts: intangibility, inseparability, heterogeneity, and Perishability.

Service encounterThe actual interaction point between a customer and a service provider. Marketing

Service Profit Chain The chain that links the profits of the service firm to employee

and customer satisfaction.

Share of Voice


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The media spending of a particular brand when compared to others in its category.

Shelf CardA display card designed to be set up on a shelf in a retail store.

Shelf ExtenderA tray-like extension that projects outward from a retail store shelf, used for special

displays or as a means of increasing the regular shelf display. Also known as

extender.

Shelf PackA container for retail items of sufficiently small size to permit the full amount to be

placed on a shelf with ordinary clearance height.

Shelf SpaceThe amount of point-of-purchase space occupied by a type of merchandise in a retail

store; measured in terms of square feet, linear feet, or number of facings. Marketing

Shelf Talker A small promotional sign or card that sits on the shelf where a product

is displayed.Shopping CentreA group of retail businesses planned, developed, owned and managed by a single

unit.

Shopping GoodsThese are less-frequently purchased consumer products and services. Customers

generally compare carefully on suitability, quality, price and style before purchasing

these products.

Shopping GroupTwo or more people who shop together.

Shopping Product

Consumer good that the customer, in the process of selection and purchase,characteristically compares on such bases as suitability, quality, price and style.

Societal MarketingA revision of the traditional marketing concept that suggests that marketers adhere

to principles of social responsibility in the marketing of their goods and services,

that satisfy the needs and wants of their target markets in ways that preserve and

enhance the well being of the consumer and the society.

Socio-cultural SegmentationThe division of a total potential market into smaller subgroups on the basis of

sociological or cultural variables, such as social class, race, religion, nationality,

beliefs, values or customs.

Specialty AdvertisingAn advertising, sales promotion, and motivational communications medium that

employs useful articles of merchandise imprinted with an advertisers name,

message, or logo.

Specialty ProductConsumer product with unique characteristics or brand identification for which a

significant group of buyers is willing to make a special purchase effort. Marketing

Specialty Store A retail store that carries a narrow product line with a deep

assortment within that line.


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Spokesperson

A celebrity or company executive who represents a product, brand, or company over

an extended period of time, often in print, on television, and in personal

appearances.

Sponsorship

When the advertiser assumes responsibility for the production, the content of the

program as well as the advertising that appears within it.

Spot AdvertisingCommercials shown on local television stations, with the negotiation and purchase

of time being made directly from the individual stations.

Store ImageConsumers perception of the personality of a store and the products it carries.

Stored-value cardA stored-value card acts as a credit card, except that the card contains a prepaid

amount and can be used to purchase products and services worth that amount. As theconsumer keeps purchasing goods, the value of the card decreases.

STP

STP-segmentation, targeting, and positioning - is an organising framework for

thinking about the process of formulating marketing strategy

Strategic AgilityStrategic Agility of company is a function of its response to the constantly changing

environment, which enables it to stick true to the preconceived strategic Intent.

Strategic AllianceA partnership between two or more companies/business units to achieve

strategically significant objectives, which are mutually beneficial.

Strategic BrandA brand that is projected to reap future sales and profits. It may be a laid-back brand

that is headed towards becoming a major one. Leesures is a strategic brand for Lees

as it lays the foundation for a position in casual wear in India.

Strategic Business Unit (SBU)A unit of the company that has a separate mission and objectives and that can be

planned independently from other businesses. An SBU can be a company division, a

product line within a division, or sometimes a single product or brand.

Strategic IntentStrategy intent is a statement or a series of statements, which outline what the

organisation wants to achieve in a long term. This intent has to be simple enough to

be communicated unambiguously. It is important to hold internal and externalcustomers attention, and the consequences of failing is sufficiently compelling to

mobilise huge effort.

Strategic Marketing PlanThe planning framework for specific marketing activities.

Strategic Planning

Determination of the steps required to achieve the optimum fit between the

organizations goals and capabilities and the marketplace.

Strategic rollupA process of acquiring small, owner-operated businesses to leverage the resulting

economies of scale and the best practices across all functions.


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Strong ImplicatureA strong Implicature is the main or obvious meaning in a message. Such conclusions

are "made so strongly manifest that the hearer can scarcely avoid recovering them.

For example, the plane in the Star News ad may elicit the strong Implicature "news."

Sub-brandA brand that resides beneath and acts subserviently to the masterbrand.

Subculture

A group of people with shared value systems based on common life experiences and

situations. They form a distinct cultural group that exists as an identifiable segment

within a larger, more complex society.

Suggested list priceA pricing policy where the manufacturer suggests a retail price to the retailers so

that they receive their markups.

Superimposition

Process in TV production where an image, words, or phrases are placed over anotherimage.

Supermarket

Large, low-cost, low margins, high volume, self-service store that carries a wide

variety of food, laundry and household products.

Superstore

A store almost twice the size of a regular supermarket that carries a large assortment

of routinely purchased food and non-food items and offers services such as dry-

cleaning, post-office, photo-finishing, cheque encashing, bill paying, lunch counters,

etc.

Supplier Search

The stage of the business buying process in which the buyer tries to find the bestvendors.

SWOT AnalysisA SWOT analysis is a tool for gathering, analysing, and evaluating information and

identifying strategic options facing an organisation at a given time. This serves a

precursor to generating potential feasible strategies. Strength can be thought of as a

particular skill or distinctive competence, which will aid the organisation in

achieving its stated objectives. Weakness can be any aspect of the company that will

hinder the achievement of specific objectives. Opportunity is any feature of the

external environment, which fosters conditions that are advantageous to the firm in

relation to stated objectives. Threat can be any environmental development that may

hinder the achievement of organisational goals.

TTabloid

A newspaper approximately half the size of a standard newspaper.

Tag LineA line of copy used on an ad or in a commercial that captures the theme of the

advertisement or broader campaign and is placed prominently within it. It usually


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conveys the most important product attribute or benefit that the advertiser wishes to

convey.

Target AudienceA specified audience or demographic group for which an advertising message is

designed.

Target MarketA group of individuals whom collectively, are intended focus of the marketing mix

or strategy.

Target MarketingThe process of identifying the specific needs of segments, selecting one or more of

these segments as a target (Market Targeting/ Targeting), and developing marketing

programs directed to each.

Target Rating Points

The number of persons in the primary target audience that the media buy will reach -

and the number of times.Teaser

Copy printed on the outside of a direct mail envelope to encourage the recipient to

open, read and act on the piece.

Teaser AdvertisingAn ad designed to create curiosity and build excitement and interest in a product or

brand, without actually showing the product.

Test marketingThe stage of new product development in which the product and the marketing

programme are tested in much more realistic market settings.

Tie-in Promotion

A single promotion event intended to encourage the sale of more than one product orbrand.

Top-down ApproachBudgeting approaches in which the appropriation amount is established at the

executive level and monies are passed down to the various departments. Marketing

Total Customer CostThe total of all the monetary, time, energy, and psychic costs associated with a

marketing offer.

Total Customer ValueThe total of all of the product, services, personnel, and image values that a buyer

receives from a marketing offer.

Total Market DemandThe total volume of a product or service that would be bought by a defined

consumer group, within a defined geographic area, in a defined time period, in a

defined marketing environment, under a defined level and mix of industry marketing

effort.

Total Quality Management (TQM)Programmes designed to constantly improve the quality of products, services, and

marketing processes.

Tracking StudiesAdvertising effectiveness measures designed to assess the effects of advertising on

awareness, recall, interest, and attitudes toward the ad as well as purchase intentions.


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Trade AdvertisingAdvertising directed at distribution channels (wholesalers, distributors, sales

representatives, affiliates, value-added resellers, retailers, etc.) rather than end-

consumers.

Trade Regulation Rules (TRR)Industry-wide rules that define unfair practices before they occur. Used by the

Federal Trade Commission to regulate advertising and promotion.

Trade ShowA type of exhibition or forum where manufacturers can display their products to

current as well as prospective buyers.

Trademark

An identifying name, symbol, icon, or other device that identifies a specific

manufacturer, product or service. It gives a company the legal and exclusive rights

to use.

Trademark infringementIt is the unauthorised use of name, symbol, logo, colour, design or combination

thereof, which may lead to confusion of the origin of the good or service, which the

mark is intended to designate.

Transfer priceA cost assessed for a product exchanged between profit centres within a single firm.

Transformational AdvertisingAn ad that associates the experience of using the advertised brand with a unique set

of psychological characteristics that would not typically be associated with the brand

experience to the same degree without exposure to the advertisement.

Transit Advertising

Advertising targeted to target audiences using transportation facilities, includingbuses, taxis, trains, elevators, trolleys, airplanes, and subways.

UUnaided RecallThe ability to recall information about an advertisement, product, service or brand

without any prompting. The level of unaided recall in recipients of marketing

communications is used as one measure of communication effectiveness.

Undifferentiated Marketing

A strategy in which market segment differences are ignored and one product orservice is offered to the entire market, with the same marketing mix. Marketing

Unduplicated Research to find out the number of persons reached once with a media

exposure.

Unfair AdvertisingAdvertising in which the advertiser withholds information that could result in

injuries to the consumers.

Unique Selling Proposition (U.S.P.)An advertising strategy that focuses on a product or service attribute that is

distinctive to a particular brand and offers an important benefit to the customer.

Unsought products


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Consumer products that the consumer either does not know about or knows about

but does not normally think of buying.

VValue

A relatively enduring belief that serves as a guide for what is considered appropriate

behaviour and that is widely accepted by the members of a society.

Value AnalysisAn approach to cost reduction, in which components are studied carefully to

determine if they can be redesigned, standardized, or made by less costly methods of

production.

Value MarketingA principle of enlightened marketing that holds that a company should put most of

its resources into marketing investments that build value.

Value-addedIncreased worth of a good or service resulting from added features, lower price,

enhanced customer service, a strengthened warranty, or other marketing mix

improvements that increase customer satisfaction.

Value-based Pricing/Value PricingSetting the price based on buyers perception of value rather than on the sellers

cost. Offering just the right combination of quality and good service at a fair price.

Vehicle

A specific channel or publication for carrying the advertising message to a target

audience. For example, a medium would be magazines, while one vehicle would be

Time magazine.Viral MarketingA marketing technique whereby Web site visitors or e-mail recipients are

encouraged to pass along the companys marketing message to friends, colleagues

and/or family, thereby creating exponential growth in the messages reach.

WWarehouse ClubOff-price retailer who sells a limited selection of brand name grocery items,

appliances and a mix of other goods at deep discounts to members who pay annual

membership fees.Wheel of RetailingA concept of retailing that states that new types of retailers usually begin as low-

margin, low-price, low-status operations but later evolve into higher-priced, higher-

service operations, eventually becoming like the conventional retailers they

replaced.

Wholesaler

A firm engaged primarily in wholesaling activity.

Wholesaling

All activities involved in selling goods and services to those who buy for resale or

business use.


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Wireless advertisingWireless advertising is delivering ads to people on their pagers and wireless phones.

However, how effectively advertisers make use of this medium is entirely up to

them. Advertisers at times can either build long-lasting relationships with their users

or plainly drive them away with cluttering of messages.

Word-of-mouth Influence (W.O.M.)Personal communication about a product between target buyers and neighbours

friends, family members, and associates.

World Trade Organization (WTO)

A 125-member organization that succeeds GATT in overseeing trade agreements,

mediating disputes, and reducing trade barriers; unlike GATT provisions, WTO

decisions are binding.

YYellow Page AdvertisementsAdvertisements that appear in various phone directories like the Yellow Pages.

ZZipping

Fast-forwarding through commercials during the playback of a program previously

recorded on a VCR.

marketing a z

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