Marketing glossary

Any method that explains the step-by-step way that consumers behave in buying products where they begin with ignorance of a product and move through the 'steps or stages' to purchasing. This is a commonly used expression by marketing consultants or marketing agencies.

The placing of a persuasive announcement in audio, video, electronic, online or printed form with for the purposes of promotion of products or services. Advertising is often seen as a ‘sexy form’ of marketing promotion.

An advertising agency is an organisation providing a range of services related to advertising (see marketing agency (also called marketing services agency) to compare and contrast the advertising agencies and marketing services) and design services. Generally the larger ones (found primarily in Manchester in the Northwest of England) will have marketing services expertise and may provide video or multimedia services- however this is often 'farmed out' to specialist video production companies or multimedia agencies. Very few marketing or marketing services companies or advertising agencies like thinktank have in-house marketing services together with advertising services and high-end video production facilities.

Used by a marketing services agency or advertising agency, the anchor effect or anchoring is a very powerful method of marketing promotion where consumers compare product prices against an established product, like the market leader. The bias created attracts consumers towards this price - the anchor effect.

A four box matrix used by marketing consultants and in-house marketing teams for looking at taking existing products / services into new markets new products into existing markets.

Commonly large companies such as software houses are in the press for breaching antitrust laws that are laws found in the us, forbidding monopolies, unfair competition and restraints of trade. The laws also forbid lessening of competition by exclusive dealing and price discrimination.

The average time (in days, months or years) a customer buys from your business. Marketing consultants use this information (especially relationship marketing experts as found at thinktank marketing) to improve company profitability.

The total amount of money spent during the average lifetime (see average lifetime) by a customer. Marketing services consultants use average lifetime value to improve a company’s overall profitability by maximising the average customer lifetime value.

Basing product pricing by using a method of adding a fixed percentage onto the total cost of producing the product. This crude method of pricing is often used by companies with large volumes of products, or by companies who choose not to market their products or services using marketing methodology.

Commonly also called cutaways. B-roll is footage filmed to tell the story, very often to support a contributor or narrative within a corporate film or documentary

A misleading advertising offer intended to mislead the prospective customer into thinking that the company is selling a product at a price which the company has no intention of doing so. The purpose is to increase inquiries and thus switch the consumer to buy from the company. Some companies regard this as unethical marketing or unethical advertising

The difference between a country's exports and imports.

A small rectangular banner placed by companies on other web sites the hosting web site owner is paid revenue for the number of page impressions or the number of click throughs to the client web site. Banner advertising is much more sophisticated than when originally introduced to the web in the 1990s.

Method of networking whereby companies with complimentary products or services exchange banner adverts to increase traffic to their respective web sites. A cost-neutral marketing initiative.

Market forces which make entering the market difficult. Branding, advertising & promotion, patents, market entry restrictions and tariffs are examples of this. Marketers and investors often cite barrier to competition as a measure used to look at long term investment opportunity or revenue generation opportunity.

The factors making successful new product development difficult to bring to market like the economy, laws and technical knowledge and ability. Barrier to market entry can often be increased for competitors by the successful acquisition of intellectual property rights such as patents or trademarks. These barriers to market entry can stop or slow down competition. This is a technique extensively used by marketers and patent agencies to prevent competition in the short-medium term.

Any cost that is not itemised in a production budget.

Dividing prospects and customers into groups based on what benefit they are looking for from a product. For example, some people choose bottled beers due to their perceived better taste whereas others may choose to drink them for 'trend or image' reasons.

Where a salesperson states product benefits that closely match the prospective customers needs in order to win the sale. Marketing agencies employing senior or expert marketing consultants with a solid understanding of marketing principles will often work with clients to make sure that these benefit messages are relevant and successful when employed.

Where software companies will freely distribute an early working version of a new product so that a mass user group can identify glitches and report back the problems to the product development team. Some companies such as apple choose not to adopt wide beta testing programmes and there is much debate about the effectiveness of beta programme testing.

A store layout plan with actual sizes, shapes and locations off all store goods.

The main text in an advert, company literature or web site. The body copy is used by marketing experts or nlp specialist marketing consultants to engage with client / customer groups in a way which persuades. You will buy from thinktank, methods which effectively mean that your body copy works better than ever before!

A pack or carton giving extra away for free or a reduced price. A classic marketing tactic to enable customers to experience the product for the first time or to get more for free!

A salesperson's method of turning an objection into a reason for acting immediately with the intention of strengthening the possibility of winning the sale.

Cash cows, stars, problem child (question mark) and dogs. This tool developed by the boston consulting group is used to look for possible problems and helps with divesting and harvesting of products.

The brand is the name, logo and any special property that identifies a product or service in its own right. Legally it is referred to as a trademark if a company has applied for trademark status. The brand can be a single product, a group of products or the entire offer of a company (e.g., mcdonalds, coca cola, etc – these are all registered trademarks of their respective companies).

The level of customer awareness of a brand's existence within a market. Experienced marketing consultants will know the difference between brand awareness and brand equity.

The purchase of one brand instead of another where a choice exists. Marketing services agencies know the power of brand choice by consumers or b2b customers.

Weakening of brand image by launching too many line extensions or using the brand name across a wide variety of areas. There are rare examples of this actually working in practise like virgin, however, other factors have contributed to the success of brands like virgin and are beyond the scope of this text. Brand dilution as classically defined is not as relevant as it once was during the pre-internet era.

The value or perception of the qualities of a brand within a market, based on attitudes, beliefs and favourable consequences of using the brand. Marketing consultants understand the power of brand equity.

The process of launching a new product line using an existing brand name and adding a 'tag' to identify it with. For example blackcurrant tango is a line extension of the tango brand.

Not the same as generic brand! A brand generic is the latter half of a brand identity. Hoover vacuum cleaner , hoover the brand and vacuum cleaner the generic.

Perception of the brand in the mind of a prospective customer. People's beliefs, expectations and feelings about a brand.

This is where the customer has no preference for one brand over another for whatever reason. Often these customers will purchase brands based on convenience, price or by chance (for further reading on chance try looking up the bernoulli principle in marketing textbooks).

The 'badge' of the brand, which may or may not include the brand name.

The bond of habit or tendency of a customer to buy a brand based on their beliefs, perception, attitudes and experience of use of that brand. Brand loyal customers have a very high barrier to 'switching' products (see brand switching).

The management process carried out by a company and / or its agency responsible for developing all aspects of the brand.

The part of a brand represented in letters or numerals. This does not include the logo. Brand positioning (see positioning)

Where a customer changes to another brand or exhibits buying behaviour that possesses no loyalty to buying one brand over another.

The period in time from product launch when the sales of a product equal the total cost of production, marketing administration and distribution of that product.

The time period when total sales costs since launch equals the total cost of product development and all other associated costs since launch. This time period always comes later than the break-even point.

Also referred to as high speed internet, broadband is internet access at a high speed. There are various broadband speeds usually 8-20 times faster than a standard modem. Variations of high speed internet access are known as asdl (asymmetric digital subscriber line), dsl (digital subscriber line), t1, t2 etc.

This is a much higher quality production (and therefore more expensive) than needed for multimedia or vhs use.

Consumer electronic goods like tvs video's hi-fi.

Companies refer to the budget as 'sales budget' or 'marketing budget'. Sales budget refers to the amount of sales forecasted over a given period and marketing budget is the amount of money allocated to spend on marketing the product. It can be confusing sometimes.

Salespeople identify buying signals in order to 'close' a sale. These are often key phrases or visual signals given by customers.

Computer aided design

Where a customer is in an environment like a motorway service station or airport and has no other alternative source from which to purchase. Pricing often reflects the restriction of choice for the customer

An immoral arrangement where like minded businesses fix or set prices to maximise profit.

A large store (physical or virtual) that concentrates solely on a very narrow range of products and offers poor service but prices the products very low.

A marketing policy using an approach which appeals to the greater good of humanity. For example organic foods or body shop. These companies aim to do business and protect and respect animal life or the planet. A company adopting this approach must ensure that all of its activities are carried out in a way which supports their claim to be green and eco-friendly.

The network of organisations and systems for getting the product from the producer to purchaser.

The point at which the salesperson attempts to finish the deal when selling.

Using existing customers or members to gain reward for 'introducing another person' to a product or service.

An advert in which reference or inference to another competitive product is made and compares or invites the customer to compare the two. Taking the 'pepsi challenge' is a good example of this.

Where one company has an advantage over another because of things like lower production costs, superior product quality or uniqueness.

The image that a company portrays to the outside world.

A term often used to denote the 'coming together' of tv/video/pc/telephone into an integrated household unit.

The image of a company. This term is also loosely used to describe a company or brand logo, typeface etc.

The main company plan containing a 'mission' human and financial resource strategies together with all the business strategies of the company in priority order.

Selling a range of products by setting the price on the basis of adding a fixed mark-up to the total costs of production and associated costs.

An organised method of minimising the impact of a serious event, product failure or adverse publicity.

The number or proportion of customers who defect from buying your brand every year.

Customer retention -the number or proportion of customers who are retained (stay doing business with a company) every year. This is usually expressed as a percentage or by using the average customer lifetime value (see above)

The study of looking at customers experience of a product or service against their expectations.

Using new technologies like digital tv to sell products and services. This term is no longer used anymore.

The management process of developing relationships with existing customers and new business prospects by electronically storing and analysing data to produce useful information on which to make future marketing decisions.

The individual or team responsible for making the final buying decision (see also influencers).

A graph showing how price affects the sales of a product with all other variables being constant.

Setting the price on the basis of demand at various prices.

Human factors such as age, sex, education, religion, earnings, occupation and geography which are used to classify customers for building target customer groups.

A detailed interview used in market research where the individual expresses a range of views rather than answering yes or no. These are used to a gain deep insight and understanding of issues.

A market research question where the answer can either be one choice or another, e.g., yes or no.

A cost effective way of printing when only a small amount of printed material is required. It differs from lithographic (standard) printing in both quality and cost.

Mass promotion where the advertising material goes to a known target audience, like direct mail.

Where the company sells or 'divests' a product service or category for strategic reasons.

Data & marketing association

Reducing the number of employees and restructuring the company in order to increase profitability.

The exchange of money (and data) via the internet to buy goods, gain information from remote sources and transfer money (on-line banking).

Before mass take-up of a product but after the innovators who will buy at an earlier stage.

People who will wait to buy a product until after it has been tried and tested by the innovators and early adopters but buy before the product has become well-established.

Exchange of data between companies to facilitate day-to-day business.

Selling products to consumers by electronically taking money at the point of sale , e.g., supermarket checkout.

Elasticity measures how increasing or decreasing the price affects demand for a product.

The process of marketing goods or services outside the parent companies home country.

A closed computer network link to share information between different companies.

Animation produced for the web or multimedia using a product calling macromedia flash.

A typeface, for example arial, helvetica, times new roman etc.

A web page which is used to exchange views about a particular subject or subjects where viewers generally have similar interests.

The fine splitting of markets into segments then fragments as consumers become more selective in their buying behaviour or where there is a plethora of product choice.

The number of times you get your promotional message across to the average target customer during the period of a campaign.

Where there is a dependency of pricing between one product and another in a line of goods sold by that company.

A complex process identifying the gap between what is being done now in the marketing of a product and where it should be to fall into line with overall strategic objectives. Gap analysis identifies what needs to be done and assesses the cost and probability of achieving it.

The total value of goods and services produced by a country over a given time.

A product named by its generic class, e.g., dvd player, video etc.

An advertising campaign that is run across many countries and continents with a similar message, modified only slightly for each target country.

A brand name used world-wide (like coca cola).

A country's total financial output and services output over a given period of time.

An expression used in market research where many people are gathered together in the same environment to discuss, taste or test products, services or advertising.

An expression used in data management and general business. Data collection defines the term as the carry-over effect seen when data with sample error is used in other calculations. In business, the term often refers to the added effect of one thing upon another.

Goods like home furnishings, hardware, finishing and appliances.

A strategy used when a company is in need of money or forecasts a downturn in the long-term market. The company usually maximises the amount of turnover from a product by a variety of ways, such as lowering the price, saturating the market etc. To achieve this.

The main heading of an advert.

Hierarchy of needs (see maslow)

The number of times a particular web site or page on a web site has been visited by people surfing the web.

The acquisition of businesses in the same market place to strengthen the business and reduce competition.

The place or company where a web site is stored so that people can see the site when using the internet.

Email with graphics/pictures used for promotion, usually sent by the thousands.

Institute of direct marketing

A quick buying decision that is made without the customer going through an 'adoption process' first. An example of this is the buying of chocolate at a supermarket checkout.

The individuals in a company that have a direct influence on the final decision of any buying choice. These people may be end users, lower management in large companies or any individual that has the ear of anyone on the decision making unit (see decision making unit).

People who buy a product soon after launch and without the need for seeking other opinions or experience.

A company's internal communication network on which employees can access information and newsletters via a graphics interface such as a browser like internet explorer or netscape. The intranet may be connected to the internet for employees to access information, however, people outside the company cannot gain access to the intranet.

A manufacturing method used to reduce stock levels by planning to receive goods exactly when they are needed.

An advanced version of jit where there is a greater relationship between the manufacturer and its suppliers. Often the suppliers will have their personnel working within the manufacturers plant.

A company's major account holders.

A set of key brands within a retail environment where their prices are well known by the average consumer. Consumers cannot be aware of every price and so the kvis are the brands that will make a store look cheap or expensive.

People who will not buy a product until after it has become well established and owned by a great number of people.

This states that there is a point after which adding things like product features or increasing quality will not be worthwhile as there will be a low return for the company in doing this.

The evolution of a brand from its launch (birth), through to the end of its natural life where the product is deleted from a company's portfolio. There are different kinds of product life cycle depending on the market however and life cycles can range from as little as one year in a high tech environment like computers through to many decades. The life cycle is characterised by a period of slow growth at launch, followed quickly by fast exponential sales growth. The growth in sales slows at the product reaches a maturity phase and later goes into decline. This is then followed by product withdrawal for financial reasons.

A new product that has carries the name of an existing brand normally new sizes, tastes, colours, models etc.

The published price of an item, excluding any discount offered by a reseller.

A term used to describe the process for printing what is called the 'traditional' way. Most printing of promotional brochures is done in this way (see also digital printing).

A method used for building relationship with customers by obtaining detailed information about their habits, rewarding the for buying from your business and attempting to stop them switching business to a competitor.

A mulitstep approach to business looking at a company's macro environment such as its customers sic code and size of the buying firm through to micro issues such as order size and urgency.

This looks at larger marketing issues such as the economy, political situation, changes in legislation etc. On a broad level.

The extra price that the company sells its product using the cost of production price for the basis of calculating the mark-up.

A measure of how many outlets in a given area (compared to the total number of outlets) stock a product.

An analytical technique used to express two or several factors into numerical form. This is used for a number of reasons including targeting.

A strategy that aims to increase businesses within a market or to maintain business if defending competition from competitors.

The process of selecting methods of gathering, recording and analysing market data for marketing purposes.

A group of customers in a market with a defined set of needs. Markets usually have a number of these groups and thus are called segments. Further subdivision of segments is known as market fragments.

The process of looking at the different customer needs within a market and dividing them into different segments based on these needs. (see market segments).

The percentage of unit or £ sales of any product within its market.

(not the technical definition) the process of managing a company's products or services to maximise the profitability of the company (unless the organisation is non-profit making) . It evaluates current and changing customer needs and market conditions to develop new products or services. The process ensures that all aspects of the product, optimum places for selling, setting prices and its promotion, are conducted in the best way. These same principles are also applied to existing products and company portfolios.

Full-service and non full-service. The majority of marketing agencies provide a high level of marketing advice and expertise on marketing matters. A full service agency, like thinktank marketing provides a full service in-house with expert understanding of strategy, design, e-business, multimedia, web site development and direct marketing / database development.

Assigning financial resources to the various elements of the marketing of a product or service. The four p's , product, price, place and promotion are all allocated a budget for marketing purposes (also see promotional mix).

A detailed instruction plan outlining the methods needed for a product to be successful within a market. It evaluates market conditions, previous sales history, swot (see swot analysis), and future promotion plans. This document is usually for one product or a group of products, however, in smaller businesses it may form the entire company plan.

A well established theory of abram maslow that examines the way humans are motivated and seeks to explain their aspirations. A good tool for use in both marketing and sales.

The analysis of client needs by a marketing or advertising agency for subsequent purchase of advertising space on behalf of the client.

The study of the marketing activities of a company.

A public statement of a company's intent. This includes the purpose and strategic aims of the company. The mission forms the basis for all company activities.

The act of a company having one or more products in the same competing market. Soap powder and shampoo are good examples of this.

An organisation providing 2-d and 3-d interactive presentations for use with computers, web sites and touch-screen kiosks. These agencies rarely deal with traditional design or marketing.

A term used for various things including a product that has more than one layer of packaging, such as a foil container inside a cardboard carton.

A research method where a representative of the market research company will pose as a customer to assess the level of service provided by a company.

A brand that is marketed throughout one country. However, a national brand may be marketed in different countries under a different name.

A method of advertising aimed at exposing the weaknesses of competitor products.

The process of identifying customer needs and bringing a product or service to the market that matches these needs.

A product aimed at a specific market segment or segments. (see market segments).

Marketing a product without focusing on price. In this situation there will usually be focus on service levels, product choice etc.

A government or charity organisation with a remit to serve the public or to benefit good causes.

Companies that buy other companies goods to make its products. Pc manufacturers (digital, dell, ibm etc.) Are examples of an oem.

An activity that takes place over the internet.

A company's organisation chart.

Pricing goods in line with the competition.

Also referred to as the 80:20 rule. 80% of your business comes directly from 20% of your customers.

Advertising features, display racks and cardboard cut-outs positioned at the place where customers buy products.

A term often used to refer to a company that hosts a number of banner adverts with the main aim of generating significant amounts of revenue.

Managing a range or 'portfolio' of products or services and new developments in an integrated way, analysing the competitors in each market and recommending methods for optimising the future portfolio.

Marketing activities prior to product launch.

A product with a high price, usually sold on style, quality uniqueness or rarity. These 'exclusive' products are normally sold through selected outlets.

A company's product or group of products with similar characteristics. Product lines may contain a subdivision of further product lines.

An individual in a company who is responsible for the marketing of a product or group of products. In larger companies this post reports into the marketing director.

Assigning financial resources to the various elements needed for promoting a product or service. This 'mix' is used as a basis of promoting the product.

The process of developing relations and finding positive angles for gaining press and media exposure.

Governmental organisations set-up to meet the needs of the country. These bodies generally exist to serve without making a profit.

A method of gaining extra sales by use of point-of-sale advertising, stocking offers to resellers etc. The purpose here is to pull the product through the distribution channel and push it to customers. This is termed 'push-pull'.

Market research used to generate detailed information rather than numbers or percentages.

A method of usage qualitative research as a primary tool in order to develop the ideal way to carry out quantitative market research.

Market research used to generate a numerical evaluation of a given parameter in a market place like 'awareness', number of times used etc.

The process and team responsible for bringing new products to market and improving existing products.

The published rate at which a newspaper, tv or radio station sells advertising space or time.

Changing the name, image or logo of a current brand on the market.

The way customers buy products or services based on their beliefs about a product or company and their relationship with that brand or company. An 'emotional' purchase. (see transactional purchasing for contrast).

Marketing by development of relationships with customers through tactics like mailings, clubs, magazines etc. The marketing relies on building an effective database of customer and their needs.

An individual or company who completes a request like filling in a form, taking part in market research or returning a reply from a mailshot.

A reply paid card or device used to collect data or gain further interest / sale of a product.

The development of a plan outlining the optimum way to attract customers, including store position, layout, store design, services offered, advertising and promotion budget.

In market research, a selection of individuals for research that contains a representative sample of the market. In promotion a sample is a small pack of goods distributed to prospective customers in order to experience the product.

Normally this process takes time to see the outcomes before a comparison can be made.

The process of improving and optimising a web site on the internet..

An internet term for a site where you can search for what you are looking for when you insert a series of key words or phrases.

Often to maintain exclusivity of the product and a high price.

An agreement between two parties (either in the same company or with suppliers or customers) that clearly defines the expectations required from one or both parties.

Method of placing products of similar perceived quality within the same promotional setting, or companies product portfolio. It justifies the extra 'premium price' of relatively unknown brands.

Products and establishments are divided into sic codes depending on various factors. The system was developed by the us department of commerce.

The decision making process that examines and recommends the best strategies for a company to market new and existing products.

Spending time using the internet visiting various sites.

A matrix used for examining the strengths, weaknesses, opportunities and threats for companies, products or service within a market. The idea is to maximise the strengths and opportunities and minimise the weaknesses or threats. Swot can also be in a quantitative form whereby weighting factors are added to each element of the swot.

Detailed short-term ways of achieving the marketing strategy.

A list of customers with common interests that form the focus of your promotion. The list can be individual names or in the case of mass marketing just common characteristics like age, sex income etc. Used to generate campaigns that will get to these people.

The chosen market for a particular product or service.

Using various geographical areas to test the likely uptake of a product or service. Factors such as price, advertising campaigns and distribution channels can be changed in the different areas to measure the optimum route to market for product launch.

The way customers buy products or services based on facts and availability like price. This way assumes that the customer has no preference for supplier or brand. The internet has increased the level of transactional purchasing and as such businesses require a different approach to internet marketing in many circumstances. A ' non-emotional' purchase decision (see relational purchasing for contrast).

A product that is sold by weights or measures.

(USP) Also referred to as Unique Selling Principle) - a brand's unique property or characteristic that clearly differentiates it from the competition. A marketing company can develop a powerful USP for new products or services.

The merger or acquisition of two companies within a market but compliment each other because they are within different parts of the channel, e.g., a manufacturer merging with a retail chain, or a supplier merging with a company that buys its products in order to market their goods.

A product in decline or easily vulnerable to attack due to its poor quality or marketing power.

The methods used in such industries as airlines and hotels to maximise the amount of profit per unit sold.

What's in it for me. A good way of summarising what customers want when choosing to buy something.

The 'little something' that makes a product or service extra special.

A platform for sharing video content founded on Valentine's Day 2005 by workers of PayPal.

A 1980's label, mostly used as a negative term, describing a successful young person perceived as flashy, self-centred and lacking respect for other people.

The phenomenon of consumers using the tv remote control during adverts, thus reducing the effectiveness of advertising campaigns.