marketing glossary
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MARKETING FOUNDATIONS GLOSSARY
Here we are going to announce the meaning of the most
important words of marketing.
Yuly Marcela Pira Castillo
2 AM
14 DE ABRIL DE 2014
ESCUELA COLOMBIANA DE CARRERAS INDUSTRIALES MODERN LANGUAGES BOGOTA-COLOMBIA
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Marketing: Marketing is the process of communicating the value of a product or
service to customers, for the purpose of selling that product or service.
Market: Market is an actual or nominal place where forces of demand and supply
operate, and where buyers and sellers interact (directly or through intermediaries) to
trade goods, services, or contracts or instruments, for money or barter. Markets
include mechanisms or means for (1) determining price of the traded item, (2)
communicating the price information, (3) facilitating deals and transactions, and (4)
effecting distribution. The market for a particular item is made up of existing and
potential customers who need it and have the ability and willingness to pay for it.
Product: In marketing, 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.
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Promotion: Promotion is one of the market mix elements or features, 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 a corporate image. Fundamentally, however there are three basic
objectives of promotion. These are:
To present information to consumers as well as others.
To increase demand.
To differentiate a product.
Place: Is an establishment (a factory or an assembly plant or retail store or
warehouse etc.) where business is conducted, goods are made or stored or processed
or where services are rendered.
Need: A driver of human action which marketers try to identify, emphasize, and
satisfy, and around which promotional efforts are organized.
Client: Person that is looking for things to buy for his necessities.
Strategy: An organization's strategy that combines all of its marketing goals into
one comprehensive plan. A good marketing strategy should be drawn from market
research and focus on the right product mix in order to achieve the maximum profit
potential and sustain the business. The marketing strategy is the foundation of a
marketing plan.
Principles: Fundamental norms, rules, or values that represent what is desirable
and positive for a person, group, organization, or community, and help it in
determining the rightfulness or wrongfulness of its actions. Principles are more basic
than policy and objectives, and are meant to govern both.
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Services: Intangible products such as accounting, banking, cleaning, consultancy,
education, insurance, expertise, medical treatment, or transportation.
Sometimes services are difficult to identify because they are closely associated with a
good; such as the combination of a diagnosis with the administration of a medicine.
No transfer of possession or ownership takes place when services are sold, and they
(1) cannot be stored or transported, (2) are instantly perishable, and (3) come into
existence at the time they are bought and consumed.
Slavery: Slavery is a system under which people are treated as property to be
bought and sold, and are forced to work. Slaves can be held against their will from the
time of their capture, purchase or birth, and deprived of the right to leave, to refuse
to work, or to demand compensation. Historically, slavery was institutionally
recognized by most societies; in more recent times, slavery has been outlawed in all
countries, but it continues through the practices of debt bondage, indentured
servitude, serfdom, domestic servants kept in captivity, certain adoptions in which
children are forced to work as slaves, child soldiers, and forced marriage.
Feudalism: Feudalism was a set of legal and military customs in medieval Europe
that flourished between the 9th and 15th centuries. Broadly defined, it was a system
for structuring society around relationships derived from the holding of land in
exchange for service or labour.
Capitalism: Capitalism is an economic system in which trade, industry and the
means of production are controlled by private owners with the goal of making profits
in a market economy. Central characteristics of capitalism include capital
accumulation, competitive markets and wage labor. In a capitalist economy, the
parties to a transaction typically determine the prices at which assets, goods, and
services are exchanged.
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Socialism: Socialism is a social and economic system characterised by social
ownership of the means of production and co-operative management of the
economy." Social ownership" may refer to cooperative enterprises, common
ownership, state ownership, citizen ownership of equity, or any combination of these.
There are many varieties of socialism and there is no single definition encapsulating
all of them. They differ in the type of social ownership they advocate, the degree to
which they rely on markets or planning, how management is to be organised within
productive institutions, and the role of the state in constructing socialism.
New Information Technologies: In a business context, the Information
Technology Association of America has defined information technology as "the study,
design, development, application, implementation, support or management of
computer-based information systems". The responsibilities of those working in the
field include network administration, software development and installation, and the
planning and management of an organization's technology life cycle, by which
hardware and software is maintained, upgraded and replaced.
Consumption: The process in which the substance of a thing is completely
destroyed, used up, or incorporated or transformed into something else.
Consumption of goods and services is the amount of them used in a particular time
period.
Interest: A fee paid for the use of another party's money. To the borrower it is the
cost of renting money, to the lender the income from lending it.
Interest on all debt is normally deductible before taxes are assessed on a company's
income. Corporate legislation requires disclosure of interest payable on loans, and
companies often show a single interest figure in the income statement while providing
details in a note that may also include netting out of interest received or some other
adjustments. In cost accounting, interest is normally excluded from cost computations
on the grounds that (being a payment for capital) it is equivalent to dividend, and
hence is a finance item and not a cost item. The rate of interest is usually expressed
as an annual percentage of the principal, and is influenced by the money supply, fiscal
policy, amount being borrowed, creditworthiness of the borrower, and rate of inflation.
The two types of interest are simple interest and compound interest.
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Per-Cápita: Total national income (GDP) divided by total population. It is not the
average income (because it includes children and non-working population) but serves
as an indicator of a country's living standards.
Publicity: Publicity is the deliberate attempt to manage the public's perception
of a subject. The subjects of publicity include people (for example, politicians and
performing artists), goods and services, organizations of all kinds, and works of art or
entertainment.
Publicity is the act of attracting the media attention and gaining visibility with the
public, it necessarily needs the compliment of the media it cannot be done internally
) is the process of making service known by the people or creating awareness or letting
your product known or your company it is the publicist that carries out publicity while
PR is the strategic management function that helps an organization communicate,
establish and maintain relation with the important audiences, It can be done internally
without the use of media
Brand: Unique design, sign, symbol, words, or a combination of these, employed
in creating an image that identifies a product and differentiates it from its competitors.
Over time, this image becomes associated with a level of credibility, quality, and
satisfaction in the consumer's mind (see positioning). Thus brands help harried
consumers in crowded and complex marketplace, by standing for certain benefits and
value. Legal name for a brand is trademark and, when it identifies or represents a firm,
it is called a brand name.
Catalog: List of goods or services on sale with their description and prices
published as a printed document, or as an electronic document (e-catalog) on internet
or on a diskette, CD, DVD, etc.
Vademecum: A ‘Vademecum’ is a reference work containing information or
fundamental notions of a subject, whether scientific or artistic.
Particularly emphasize those using healthcare professionals to consult on submissions,
compositions and the main indications of drugs.
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Electronic Market: Electronic markets (or electronic marketplaces) are
information systems (IS) which are used by multiple separate organizational entities
within one or among multiple tiers in economic value chains. In analogy to the market
concept which can be viewed from a macroeconomic (describing relationships among
actors in an economic systems, e.g. a monopoly) as well as from a microeconomic
(describing different allocation mechanisms, e.g. public auctions of telephone
frequencies) perspective, electronic markets denote networked forms of business with
many possible configurations.
Monopoly: Market situation where one producer (or a group of producers acting
in concert) controls supply of a good or service, and where the entry of new producers
is prevented or highly restricted. Monopolist firms (in their attempt to maximize profits)
keep the price high and restrict the output, and show little or no responsiveness to the
needs of their customers. Most governments therefore try to control monopolies by
imposing price controls, taking over their ownership (called 'nationalization'), or by
breaking them up into two or more competing firms. Sometimes governments
facilitate the creation of monopolies for reasons of national security, to realize
economies of scale for competing internationally, or where two or more producers
would be wasteful or pointless (as in the case of utilities). Although monopolies exist
in varying degrees (due to copyrights, patents, access to materials, exclusive
technologies, or unfair trade practices) almost no firm has a complete monopoly in
the era of globalization.
Duopoly: Market situation in which only sellers supply a particular commodity to
many buyers. Either seller can exert some control over the output and prices, but must
consider the reaction of its sole competitor (unless both have formed an illegal
collusive duopoly).
Juncture: Juncture, in linguistics, is the manner of moving (transition) or mode of
relationship between two consecutive sounds. It is the relationship between two
successive syllables in speech. A juncture is, formally, a suprasegmental phonemic cue,
a means by which a listener can distinguish between two otherwise identical sequences
of sounds that have different meanings.
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Potential Customer: A potential customer is anyone with money, period. It
can also include people who are broke as well because they will someday have some
money as well.
What do they do? They buy junk as you do. My dog can be a potential customer, but
don't ever look at someone who is dressed badly, looks ugly and sloppy and assume
they won't buy.
Perishable Products: Perishable products are those that worsen in quality over
time, and become lesser in value. Perishable goods decay rapidly if not refrigerated,
or if some other preservation technique is not employed.
Fungible Product: Uniform, interchangeable, and substitutable like cash for
cash, corn for corn, and gold for gold. A commodity must be fungible before it can
be traded on a commodity exchange. If two manufactured goods are fungible, they
are treated as commodities and must compete only on the basis of price and/or
availability. Shares of a firm, even if bought at different prices at different times, are
fungible.
Tangible Product: A physical item that can be perceived by the sense of touch.
Examples of a tangible product include cars, food items, computers, telephones, etc.
Many businesses also need to provide packaging for a tangible product to provide
protection during its transportation to a retail location.
Intangible Product: Intangible products are products that cannot be separated
from the provider. Some examples are haircuts, Internet service, and advice.
Deficit: The amount by which expenses exceed income or costs outstrip revenues.
Deficit essentially refers to the difference between cash inflows and outflows. It is
generally prefixed by another term to refer to a specific situation - trade deficit or
budget deficit, for example. Deficit is the opposite of "surplus" and is synonymous with
shortfall or loss.
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Surplus: Extent to which generation of goods, services, and resources (such as
capital) exceeds their consumption. Surplus of resources is the bedrock on which
capitalism is built.
Inflation: Inflation is a persistent increase in the general price level of goods and
services in an economy over a period of time. When the general price level rises, each
unit of currency buys fewer goods and services. Consequently, inflation reflects a
reduction in the purchasing power per unit of money a loss of real value in the medium
of exchange and unit of account within the economy. A chief measure of price inflation
is the inflation rate, the annualized percentage change in a general price index
(normally the consumer price index) over time.
Stagflation: Stagflation, a portmanteau of stagnation and inflation, is a term
used in economics to describe a situation where the inflation rate is high, the economic
growth rate slows down, and unemployment remains steadily high. It raises a dilemma
for economic policy since actions designed to lower inflation may exacerbate
unemployment, and vice versa.
The term is generally attributed to a British politician who became Chancellor of the
Exchequer in 1970, Iain Macleod, who coined the phrase in his speech to Parliament
in 1965.
Consumer Price Index: A consumer price index (CPI) measures changes in
the price level of a market basket of consumer goods and services purchased by
households. The CPI in the United States is defined by the Bureau of Labor Statistics
as "a measure of the average change over time in the prices paid by urban consumers
for a market basket of consumer goods and services."
Producer Price Index: A Producer Price Index (PPI) measures the average
changes in prices received by domestic producers for their output. It is one of several
price indices.
Its importance is being undermined by the steady decline in manufactured goods as
a share of spending.
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Market Segmentation: The process of defining and subdividing a large
homogenous market into clearly identifiable segments having similar needs, wants, or
demand characteristics. Its objective is to design a marketing mix that precisely
matches the expectations of customers in the targeted segment.
Few companies are big enough to supply the needs of an entire market; most must
breakdown the total demand into segments and choose those that the company is
best equipped to handle.
Empowerment: A management practice of sharing information, rewards, and
power with employees so that they can take initiative and make decisions to solve
problems and improve service and performance.
Empowerment is based on the idea that giving employees skills, resources, authority,
opportunity, motivation, as well holding them responsible and accountable for
outcomes of their actions, will contribute to their competence and satisfaction.
Cost of Production: The costs related to making or acquiring goods and
services that directly generates revenue for a firm. It comprises of direct costs and
indirect costs. Direct costs are those that are traceable to the creation of a product
and include costs for materials and labor whereas indirect costs refer to those costs
that cannot be traced to the product such as overhead.
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. For example, a good that is normally priced at $100 and currently being offered
at a 10% reduction would have a sale price of $90.
Labeling: Display of information about a product on its container, packaging, or
the product itself. For several types of consumer and industrial products, the type and
extent of information that must be imparted by a label is governed by the relevant
safety and shipping laws.
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Merchandising: The activity of promoting the sale of goods at retail.
Merchandising activities may include display techniques, free samples, on-the-spot
demonstration, pricing, shelf talkers, special offers, and other point-of-sale methods.
According to American Marketing Association, merchandising encompasses "planning
involved in marketing the right merchandise or service at the right place, at the right
time, in the right quantities, and at the right price."
Objection: Formal protest or disapproval of something that has been said, has
occurred, or is about to occur.
Distribution Channel: The path through which goods and services travel
from the vendor to the consumer or payments for those products travel from the
consumer to the vendor. A distribution channel can be as short as a direct transaction
from the vendor to the consumer, or may include several interconnected
intermediaries along the way such as wholesalers, distributers, agents and retailers.
Each intermediary receives the item at one pricing point and movies it to the next
higher pricing point until it reaches the final buyer. Coffee does not reach the
consumer before first going through a channel involving the farmer, exporter,
importer, distributor and the retailer.
Wholesaler: Person or firm that buys large quantity of goods from various
producers or vendors, warehouses them, and resells to retailers. Wholesalers who
carry only non-competing goods or lines are called distributors.
Retailer: A business or person that sells goods to the consumer, as opposed to a
wholesaler or supplier, who normally sell their goods to another business.
Quality Policy: Top management's expression of its intentions, direction, and
aims regarding quality of its products and processes.
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Marketing Plan: Product specific, market specific, or company-wide plan that
describes activities involved in achieving specific marketing objectives within a set
timeframe. A market plan begins with the identification (through market research) of
specific customer needs and how the firm intends to fulfill them while generating an
acceptable level of return. It generally includes analysis of the current market situation
(opportunities and trends) and detailed action programs, budgets, sales forecasts,
strategies, and projected financial statements. See also marketing strategy.
Life Cycle of a Product: Marketing concept that, like people and living
organisms, goods and services pass through a cradle to grave cycle of progression
through their life span. While different products have distinctly different patterns of
demand, almost every one of them passes through the stages of introduction, growth,
maturity or stagnation, and decline or death. This view dictates the need for
continuous efforts for new product development.
Economic Activity: Actions that involve the production, distribution and
consumption of goods and services at all levels within a society. Gross domestic
product or GDP is one way of assessing economic activity, and the degree of current
economic activity and forecasts for its future level can significantly impact business
activity and profits, as well as inflation and interest rates.
Publicity Agency: 1) creates new promotional ideas, (2) designs print, radio,
television, and internet advertisements, (3) books advertisement space and time, (4)
plans and conducts advertising campaigns, (5) commissions research and surveys, and
(6) provides other such services that help a client in entering and succeeding in a
chosen market. In general, advertising agencies are not deemed agents of the
advertisers, because they act as principals for the services they buy on behalf of their
clients.
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Demographic Environment: The demographic factors of the market in
which an organization operates, and which are used to segment the target population
for effective marketing.
Psychographics Environment: Analysis of consumer lifestyles to create a
detailed customer profile. Market researchers conduct psychographic research by
asking consumers to agree or disagree with activities, interests, opinions statements.
Results of this exercise are combined with geographic (place of work or residence) and
demographic (age, education, occupation, etc.) characteristics to develop a more
'lifelike' portrait of the targeted consumer segment.
Growth of a Product: Is the stage of the product life cycle where product
sales, revenues and profits begin to grow as the product becomes more popular and
accepted in the market.
Product Demonstration: In marketing, a product demonstration is a
promotion where a product is demonstrated to potential customers. The goal of such
a demonstration is to introduce customers to the product in hopes of getting them to
purchase that item.
Products offered as samples during these demonstrations may include new products,
new versions of existing products or products that have been recently introduced to
a new commercial marketplace.
Price Skimming: Price skimming is a pricing strategy in which a marketer sets
a relatively high price for a product or service at first, then lowers the price over time.
It is a temporal version of price discrimination/yield management. It allows the firm to
recover its sunk costs quickly before competition steps in and lowers the market price.
Price skimming is sometimes referred to as riding down the demand curve. The
objective of a price skimming strategy is to capture the consumer surplus. If this is
done successfully, then theoretically no customer will pay less for the product than the
maximum they are willing to pay. In practice, it is almost impossible for a firm to
capture all of this surplus.
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Discounts: Pricing strategy is an important element of a product marketing
campaign. More than any other element, pricing strategy directly impacts the amount
of profit you make. Choose a pricing strategy that helps you meet your sales
objectives, enhances your reputation and provides the best profit point for the market
demand. A discount pricing strategy is useful for driving traffic and sales short term.
Used as a long-term strategy, discount pricing has some negative effects on market
position and brand loyalty.
Tasting Product: Depends the product a degustation is a little example of your
product, for example food: you can give to the clients a little of your food.
Distribution: The movement of goods and services from the source through a
distribution channel, right up to the final customer, consumer, or user, and the
movement of payment in the opposite direction, right up to the original producer or
supplier.
Exclusive Distribution: Situation where suppliers and distributors enter into
an exclusive agreement that only allows the named distributor to sell a specific
product. For example, Apple had an exclusive distribution deal with AT&T to provide
the iPhone to consumers.
Mass Distribution: An attempt to appeal to an entire market with one basic
marketing strategy utilizing mass distribution and mass media. Also called
undifferentiated marketing.
Selective Distribution: Type of product distribution that lies between
intensive distribution and exclusive distribution, and in which only a few retail outlets
cover a specific geographical area. Considered more suitable for high-end items such
as 'designer' or prestige goods.
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Economy: An entire network of producers, distributors, and consumers of goods
and services in a local, regional, or national community.
Packaging: Processes (such as cleaning, drying, preserving) and materials (such
as glass, metal, paper or paperboard, plastic) employed to contain, handle, protect,
and/or transport an article. Role of packaging is broadening and may include functions
such as to attract attention, assist in promotion, provide machine identification
(barcodes, etc.), impart essential or additional information, and help in utilization. See
also packing.
Packing: Preparation of product or commodity for proper storage and/or
transportation. It may entail blocking, bracing, cushioning, marking, sealing, strapping,
weather proofing, wrapping, etc.
Container: A receptacle, such as a carton, can, or jar, in which material is held or
carried.
Market Equilibrium: A situation in which the supply of an item is exactly equal
to its demand. Since there is neither surplus nor shortage in the market, price tends
to remain stable in this situation.
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Sales Stages: 1. Prospect for Leads
You can't prospect effectively without knowing all about your product(s). If you don't
understand the product, how could you know who will want to buy it?
2. Set an Appointment
It's time to use those leads you collected in stage 1. Many salespeople prefer to cold
call over the phone, but you can also call in person, send email or even mail out sales
letters.
3. Qualify the Prospect
The qualification stage usually takes place at the appointment itself, although you can
also qualify briefly during your initial contact. The idea is to confirm that your prospect
is both able and potentially willing to buy your product.
4. Make Your Presentation
The presentation is the core of every sales cycle, and it's probably where you'll invest
the most preparation time. Keep in mind that you're not just selling your product...
you are also selling yourself! You represent your company, so appearance counts.
5. Address the Prospect's Objections
Here's where you get to deal with your prospect's concerns. The one you'll hear most
often? “I have to think about it.”
6. Close the Sale
Once you've made your presentation and answered your prospect's questions and
objections, it's time to ask for the sale. This is the second-most neglected stage of the
sales cycle... which is especially sad given that it's probably the most critical one.
7. Ask for Referrals
This is hands down the most commonly neglected step. Too many salespeople are so
relieved to get a sale that they grab their things and race out the door the second
they get the chance, for fear the prospect will change their mind!
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Exhibition Product: An exhibition, in the most general sense, is an organized
presentation and display of a selection of items. In practice, exhibitions usually occur
within museums, galleries and exhibition halls, and World's Fairs. Exhibitions include
(whatever as in major art museums and small art galleries; interpretive exhibitions, as
at natural history museums and history museums), for example; and commercial
exhibitions, or trade fairs.
Intermediary: Firm or person (such as a broker or consultant) who acts as a
mediator on a link between parties to a business deal, investment decision,
negotiation, etc. In money markets, for example, banks act as intermediaries between
depositors seeking interest income and borrowers seeking debt capital. Intermediaries
usually specialize in specific areas, and serve as a conduit for market and other types
of information. Also called a middleman. See also intermediation.
Market Research: Market research is the process of collecting valuable
information to help you find out if there is a market for your proposed product or
service. The information gathered from market research helps budding entrepreneurs
make wise and profitable business decisions.
The key to any successful business is to understand what it is that your customers want
and giving this to them in a way that is profitable for you.
Motto: I a memorable motto or phrase used in a political, commercial, religious, and
other context as a repetitive expression of an idea or purpose. The word slogan is
derived from slogorn which was an Anglicisation of the Scottish Gaelic and Irish
sluagh-ghairm tanmay (sluagh "army", "host" + gairm "cry"). Slogans vary from the
written and the visual to the chanted and the vulgar. Their simple rhetorical nature
usually leaves little room for detail and a chanted slogan may serve more as social
expression of unified purpose than as communication to an intended audience.
Marketing slogans are often called taglines in the United States or straplines in the UK.
Europeans use the terms baselines, signatures, claims or pay-offs.
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Product Line: A group of related products manufactured by a single company.
For example, a cosmetic company's makeup product line might include foundation,
concealer, powder, blush, eyeliner, eye shadow, mascara and lipstick products that are
all closely related. The same company might also offer more than one product line.
The cosmetic company might have a special product line geared toward teenagers
and another line geared toward women older than 60, in addition to its regular
product line that can be used by women of any age.
Logistics: Logistics is the management of the flow of goods between the point of
origin and the point of consumption in order to meet some requirements, for example,
of customers or corporations. The resources managed in logistics can include physical
items, such as food, materials, animals, equipment and liquids, as well as abstract
items, such as time, information, particles, and energy. The logistics of physical items
usually involves the integration of information flow, material handling, production,
packaging, inventory, transportation, warehousing, and often security. The complexity
of logistics can be modeled, analyzed, visualized, and optimized by dedicated
simulation software. The minimization of the use of resources is a common motivation
in logistics for import and export.
Brand: Brand is the "name, term, design, symbol, or any other feature that
identifies one seller's product distinct from those of other sellers." Brands are used in
business, marketing, and advertising. Initially, livestock branding was adopted to
differentiate one person's cattle from another's by means of a distinctive symbol
burned into the animal's skin with a hot branding iron. A modern example of a brand
is Coca Cola which belongs to the Coca-Cola Company.
In accounting, a brand defined as an intangible asset is often the most valuable asset
on a corporation's balance sheet. Brand owners manage their brands carefully to
create shareholder value, and brand valuation is an important management technique
that ascribes a money value to a brand, and allows marketing investment to be
managed (e.g.: prioritized across a portfolio of brands) to maximize shareholder value.
Although only acquired brands appear on a company's balance sheet, the notion of
putting a value on a brand forces marketing leaders to be focused on long term
stewardship of the brand and managing for value.
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Marketing Mix: The marketing mix is a business tool used in marketing and
by marketers. The marketing mix is often crucial when determining a product or
brand's offer, and is often associated with the four P's: price, product, promotion, and
place. In service marketing, however, the four Ps are expanded to the seven P's or
eight P's to address the different nature of services.
Point of Purchase (P.O.P): The location or medium at which a product is
purchased by an end-user. A point of purchase may be a physical location, such as a
store, booth, or other retail outlet, or may consist of an electronic sales environment
such as a telephone-based ordering service or a website. Transportation of products
to points of purchase is an important element of marketing and distribution. Also
called point of sale.
Boston Consulting Group Matrix: Is a chart that was created by Bruce
D. Henderson for the Boston Consulting Group in 1970 to help corporations to analyze
their business units, that is, their product lines. This helps the company allocate
resources and is used as an analytical tool in brand marketing, product management,
strategic management, and portfolio analysis. Analysis of market performance by firms
using its principles has recently called its usefulness into question.
Scientific Method: The scientific method is a body of techniques for
investigating phenomena, acquiring new knowledge, or correcting and integrating
previous knowledge. To be termed scientific, a method of inquiry must be based on
empirical and measurable evidence subject to specific principles of reasoning. The
Oxford English Dictionary defines the scientific method as: "a method or procedure
that has characterized natural science since the 17th century, consisting in systematic
observation, measurement, and experiment, and the formulation, testing, and
modification of hypotheses."
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Investigation Methodology: The research methodology contributes to the
field of education, methods, techniques and procedures to arrive at the knowledge of
objective truth to facilitate the research process and fight for the acquisition of new
knowledge. Thus, the development of this field aims to include the issues that I think
are the basic and fundamental in the development of research, but although there is
diversity in doctrine and theories about this research aims to use concepts Easy and
simple methodology regarding the structure of the process.
Product Offering: An offering in marketing is the total offer to your customers.
An offering is more than the product itself and includes elements that represent
additional value to your customers, such as availability, convenient delivery, technical
support or quality of service. A strong offering differentiates your products from
competitors and creates value by meeting customers’ wider needs better than other
options.
Maslow's hierarchy of needs: Maslow's hierarchy of needs is a theory in
psychology proposed by Abraham Maslow in his 1943 paper "A Theory of Human
Motivation" in Psychological Review. Maslow subsequently extended the idea to
include his observations of humans' innate curiosity. His theories parallel many other
theories of human developmental psychology, some of which focus on describing the
stages of growth in humans. Maslow used the terms Physiological, Safety,
Belongingness and Love, Esteem, Self-Actualization and Self-Transcendence needs to
describe the pattern that human motivations generally move through.
Planning: A basic management function involving formulation of one or more
detailed plans to achieve optimum balance of needs or demands with the available
resources. The planning process (1) identifies the goals or objectives to be achieved,
(2) formulates strategies to achieve them, (3) arranges or creates the means required,
and (4) implements, directs, and monitors all steps in their proper sequence.
Principles: Fundamental norms, rules, or values that represent what is desirable
and positive for a person, group, organization, or community, and help it in
determining the rightfulness or wrongfulness of its actions. Principles are more basic
than policy and objectives, and are meant to govern both. See also principle.
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Complementary Product: Material or good whose use is interrelated with
the use of an associated or paired good such that a demand for one (tires, for
example) generates demand for the other (gasoline, for example). If the price of one
good falls and people buy more of it, they will usually buy more of the complementary
good also whether or not its price also falls. Similarly, if the price of one good rises
and reduces its demand, it may reduce the demand for the paired good as well. Also
called complementary product.
Derivate Product: New product that results from modifying an existing product,
and which has different properties than those of the product it is derived from.
Product bundling: In marketing, product bundling is offering several products
for sale as one combined product. It is a common feature in many imperfectly
competitive product markets. Firms in telecommunications, financial services, health
care, and information industries frequently offer products in bundles. This is again
common in the software business (for example: bundle a word processor, a
spreadsheet, and a database into a single office suite), in the cable television industry
(for example, basic cable in the United States generally offers many channels at one
price), and in the fast food industry in which multiple items are combined into a
complete meal. A bundle of products may be called a package deal or a compilation
or an anthology.
Sales Promotion: Sales promotion is one of the seven aspects of the
promotional mix. (The other six parts of the promotional mix are advertising, personal
selling, direct marketing, publicity/public relations, corporate image and exhibitions.)
Media and non-media marketing communication are employed for a pre-determined,
limited time to increase consumer demand, stimulate market demand or improve
product availability. Examples include contests, coupons, freebies, loss leaders, point
of purchase displays, premiums, prizes, product samples, and rebates.
Price Cut: cutting the price of merchandise to one lower than the usual or
advertised price.
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Slogan: Simple and catchy phrase accompanying a logo or brand, that
encapsulates a product's appeal or the mission of a firm and makes it more
memorable. And which (when used consistently over a long period), becomes an
important component of its identification or image. Also called catch line, strap line,
or tag line.
Sampling techniques: The methods used in drawing samples from a
population usually in such a manner that the sample will facilitate determination of
some hypothesis concerning the population.
Gift Technique: A gift or a present is an item given to someone without the
expectation of payment, in marketing is like a promotion, you give a gift if someone
buys your product.
Competitions Techniques: Is something that the company do for the clients,
is a strategy for have more clients.
Telemarketing: Telemarketing is a method of direct marketing in which a
salesperson solicits prospective customers to buy products or services, either over the
phone or through a subsequent face to face or Web conferencing appointment
scheduled during the call. Telemarketing can also include recorded sales pitches
programmed to be played over the phone via automatic dialing. Telemarketing has
come under fire in recent years, being viewed as an annoyance by many.
General equilibrium theory: General equilibrium theory is a concept of
theoretical economics. It seeks to explain the behavior of supply, demand, and prices
in a whole economy with several or many interacting markets, by seeking to prove
that a set of prices exists that will result in an overall equilibrium, hence general
equilibrium, in contrast to partial equilibrium, which only analyzes single markets. As
with all models, this is an abstraction from a real economy; it is proposed as being a
useful model, both by considering equilibrium prices as long-term prices and by
considering actual prices as deviations from equilibrium.
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TOWS: TOWS analysis is a method of strategic analysis used to study the
environment of the organization and its interior. TOWS concept is synonymous with
the term SWOT acronym. By according to H.Weihrich english words Threats (in the
environment), Opportunities (in the environment), Weaknesses (of the organization),
Strengths (of the organization) should be placed in this order to make the emphasis
on problem-solving sequence in the process of strategy formulation.
Sales: A sale is the act of selling a product or service in return for money or other
compensation. Signaling completion of the prospective stage, it is the beginning of an
engagement between customer and vendor or the extension of that engagement.
The seller or salesperson – the provider of the goods or services – completes a sale in
response to an acquisition or to an appropriation or to a request.
Sales Vocabulary: Is the vocabulary that you use for purchases, when you go
to the shopping center and you use a specific vocabulary for buy something.