Above-the-line promotion
A form of promotion that is undertaken by a business by paying for communication with consumers
Advertising elasticity
Measures the responsiveness of demand for a product following a change in the advertising spending on it
Agent
Business with authority to act on behalf of another firm
Asset-led marketing
An approach to marketing that bases strategy on the firm’s existing strengths and assets
Below-the-line promotion
Promotion that is not a directly paid for means of communication but based on short-term incentives to purchase
Boston Matrix
A method of analysing the product portfolio of a business in terms of market share and market growth
Brand
An identifying symbol, name, image or trademark that distinguishes a product from its competitors
Brand awareness
Extent to which a brand is recognised by potential customers and is correctly associated with a particular product
Brand development
Measures the infiltration of a product’s sales, usually per thousand population
Brand loyalty
The faithfulness of consumers to a particular brand as shown by their repeat purchases irrespective of the marketing pressure from competing brands
Channel of distribution
The chain of intermediaries a product passes through from producer to final consumer
Cluster Sampling
Using one or a number of specific groups to draw samples from and not selecting from the whole population
Company or Corporate Branding
The company name is applied to products and this becomes the brand name
Competition-based pricing
A firm will base its price upon the price set by its competitors
Consumer durables
Manufactured products that can be re-used and are expected to have a reasonably long life
Consumer Markets
Markets for goods and services bought by the final user of them
Consumer profile
A quantified picture of consumers of a firm’s product, showing proportions of ages groups, gender etc
Contribution-cost pricing
Setting prices based on the variable costs of making a product in order to make a contribution towards fixed costs and profit
Co-ordinated Marketing Mix
Key marketing decisions complement each other and work together to give customers a consistent message about the product
Corporate image
Consumer perception of the company behind a brand
Cost-plus pricing
Adding a fixed mark-up for profit to the unit price of a product
Cross elasticity
Measures the responsiveness of demand for a product following the change in price of another product
Cyclical variations
Variations in sales occurring over periods of time of much more than a year
E-commerce
The buying and selling of goods and services on the internet
Extension strategies
Marketing plans that extend the maturity stage of the product before a brand new one is needed
Family (Umbrella) branding
A marketing strategy that involves selling several related products under one brand name
Full-cost pricing
Setting a price by calculating a unit cost for the product and then adding a fixed profit mark-up
Going-rate pricing
The price charged is based upon a study of the conditions that prevail in a certain market and the prices charged by major competitors
Global localisation
Adapting the marketing mix including differentiated products, to meet national and regional cultures
Income elasticity
Measures the responsiveness of demand for a product following a change in consumers’ incomes
Industrial Markets
Markets for goods and services bought by businesses to be used in the production process of other products
International marketing
Selling products in markets other than the original domestic market
Loss leader
Product sold at a very low price to encourage consumers to buy other products
Manufacturers’ brands
Producers establish the brand image of a product or a family of products, often under the company’s name
Marginal-cost price
Basing the price on the extra cost of making one additional unit of output
Marketing
The management task which attempts to identify the needs of the consumer
Market Size
The total level of sales of all producers within a market share
Market growth
The percentage change in the total size of a market over a period of time
Market orientation
An outward-looking approach basing product decisions on consumer demand
Market research
Process of collecting, recording and analysing data about customers, competitors and the market
Market Segment
A sub-group of a whole market in which consumers have similar characteristics
Market Segmentation
Identifying different segments within a market and targeting different products or services at them
Market share
The percentage of sales in the total market sold by one business
Market skimming
Setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand
Marketing Mix
The key decisions that must be taken in the effective marketing of a product
Marketing Audit
A regular review of the cost and effectiveness of a marketing plan including an analysis of internal and external influences
Marketing objectives
The goals set for the marketing department to help the business achieve its overall objectives
Marketing plan
A detailed report on an organisation’s marketing strategy
Marketing planning
The process of formulating appropriate strategies and preparing marketing activities to meet marketing objectives
Marketing strategy
Long-term plan established for achieving marketing objectives
Own-label branding
Retailers create their own brand name and identity for a range of products
Pan-global Marketing
Adopting a standardised product across the globe as if the whole world were a single market-selling the same goods in the same way everywhere
Penetration pricing
Setting a relatively low price often supported by strong promotion in order to achieve a high volume of sales
Predatory pricing
Deliberately undercutting competitors’ prices in order to try to force them out of the market
Price elasticity of demand
Measures the responsiveness of demand following a change in price
Price leadership
One dominant firm in a market sets a price and other firms simply charge a price based upon that set by the market leader
Primary research
The collection of first hand data that are directly related to a firm’s needs
Product
The end result of the production process sold on the market to satisfy a customer need
Product branding
Each individual product in a portfolio is given its own unique identity and brand image
Product line
A set of related products sold by a business
Product mix
The variety of product lines that a business produces or a retailer stocks
Product orientation
An inward-looking approach that focuses on making products that can be made – or have been made for a long time
Product range
All of the types of products made by a business
Promotion
The use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and PR to inform and persuade consumers to buy
Promotion mix
The combination of promotional techniques that a firm uses to communicate the benefits of its products to customers
Psychological pricing
Setting prices that take account of customers’ perception of value of the product
Quantitative research
Research that leads to numerical results that can be presented and analysed
Qualitative research
Research into the indepth motivations behind consumer buying behaviour or opinions
Quota Sampling
Gathering data from a group chosen out of a specific sub-group
Random Sampling
Every member of the target population has an equal chance of being selected
Random variations
May occur at any time and will cause unusual and unpredicted sales figures
Sales forecasting
Predicting future sales levels and sales trends
Sales promotion
Incentives such as special offers directed at consumers or retailers to achieve short-term sales increases and repeat purchases by consumers
Sample
Group of people taking part in a market research survey
Sampling error
Errors in research caused by using a sample for data collection rather than the whole target population
Seasonal variations
Regular and repeated variations that occur in sales data within a period of 12 months or less
Secondary research
Collection of data from second hand sources
Snowball Sampling
Using existing members of a sample study group to recruit further participants through their acquaintances
Social Marketing
Considers not only the demands of consumers but also the effects on all members of the public
Stratified Sampling
This draws a sample from a specified segment of the population and uses random sampling to select an appropriate number from each
Supply Chain Management (SCM)
Managing the network of businesses that are involved in the provision of products to the final consumers
Target Market
The market segment that a particular product is aimed at
Trend
Underlying movement of the data in a time series
Unique Selling Point (USP)
Differentiating factor that makes a company’s product unique, designed to motivate customers to buy
Viral marketing
The use of social networking sites or text messages to increase brand awareness or sell products