Marketing Glossary

1. AIDA model of communication: A communication model which aims to obtain

Attention, Interest, Desire and Action.
2. Advertising objective: The objective of your communication strategy. To inform of a
new development, persuade or remind.
3. Benefit: The gain obtained from the use of a particular product or service. Consumers
purchase product/services because of their desire to gain these built in benefits.
4. Benefit Segmentation: Dividing a market according to the benefit they seek from a
particular product/service.
5. Brand name: Used for the identification of goods or services. Can be a name, term, sign
or symbol. A well managed brand should uphold certain values and beliefs.
6. Brand extension strategy: The process of using an existing brand name to extend on to
a new product/service e.g. The application of the brand name Virgin on a number of
business activities.
7. Break-even: A point for a business where turnover is equivalent to all costs.
8. Cash cow: A product/service which generates cash for the business, used to finance other
areas of the organisation.
9. Competitive Advantage: Offering a different benefit then that of your competitors.
10. Competitor Analysis: Process of understanding and analysing a competitors strengths
and weaknesses, with the aim that an organisation will find a competitive positioning
difference within the market.
11. Competition pricing: Setting a price in comparison with competitors.
12. Concept testing: Testing the idea of a new product or service with your target audience.
13. Brand repositioning: An attempt to change consumer perceptions of a particular brand.
For example VW has successfully repositioned the Skoda brand.
14. Data mining: Application of artificial intelligence to solve marketing problems and
aiding forecasting and prediction of marketing data.
15. Dichotomous question: Questions which limit the responses of the respondent eg
YES/NO.
16. Direct marketing: The process of sending promotion material to a named person within
an organisation.
17. Diversification: A growth strategy which involves an organisation to provide new
products or services. The new products on offer could be related or unrelated to the
organisations core activities.
18. Demography: A study of the population.
19. Demographic segmentation. Dividing the population into age, gender, income and
socio-economic groups amongst other variables..
20. Early Adopter: Those who adopt a product/service in the early stages of its lifecycle.
21. Early Majority: Those who adopt a product/service after it has been established and
excepted as the standard.
22. Engels Law: Suggest that peoples spending patterns change as their income rises.
23. Exclusive distribution: Limiting the distribution of a product to particular retail store to
create an exclusive feel to the brand/product.
24. Econometric modeling: Application of regression techniques in marketing analysis
25. Focus Group: A simultaneous interview conducted amongst 6-8 respondents. The aim
is to obtain qualitative information on the given topic.
26. Geographic segmentation: Dividing the market into certain geographic regions e.g.
towns, cities or neighborhoods.
27. Innovator: Those consumers who are the first to adopt a product/service at the
beginning of its lifecycle. They are usually willing to pay a premium to have the benefit
of being the first.
28. Intensive distribution: Distributing a product to as many retail outlets as possible.
29. Laggards: Those consumers who adopt the product/service as it reaches the end of its
lifecycle. They usally pay a competitive price for the benefit of waiting.
30. Lifestyle segmentation: Analyzing consumers activities, interest and opinion (AIOs) to
develop a profile on the given segment.
31. Market Development Strategy: Selling an existing product/service in a new and
developing market.
32. Mass marketing: The promotion of a product or service to all consumers.
33. Marketing Mix: The strategy of the organisation consisting of products, price, place
and promotion strategy (also known as the 4p's).
34. Marketing Planning: A written document which plans the marketing activities of an
organisation for a given period. The document should include an environmental analysis,
marketing mix strategies and any contingency plans should an organisation not reach
their given objectives.
35. Market position: The perception of a product or an organisation from the view of the
consumer.
36. Market research: Analysing and collecting data on the environment, customers and
competitors for purposes of business decision making.
37. Modified Rebuy: Where an organiation has to make changes to a specific buying
situation.
38. New buy: Where an organisation faces the task of purchasing a new product/service.
39. Niche marketing: The process of concentrating your resources and efforts on one
particular segment
40. Objective to task method: Setting a advertising budget based on the desired goals of
the communication campaign.
41. Open ended questions: Questions which encourage the respondent to provide their
own answers.
42. Paretos Law (80/20) : A rule which suggests that 80% of an organisations turnovers is
generated from 20% of their customers.
43. Penetration pricing: A pricing strategy where the organisation sets a low price to
increase sales and market share.
44. Perceptual map: Mapping a product/organisation alongside all competitors in the hope
to find a ' positioning gap' in the given market.
45. Personal selling: Selling a product or services one to one.
46. Primary data: The process of organising and collecting data for an organisation.
47. Product Development Strategy: The development of a new product/service aimed at
the organisation existing market. The aim is to increase expenditure within the segment.
48. Product Life Cycle: The life stage of a product, includes, introduction, growth,
maturity and decline.
49. Product Cannibalisation: Loosing sales of a product to another similar product within
the same product line.
50. Public relations: The process of building good relations with the organisations various
stakeholders.
51. Relationship marketing: Creating a long-term relationship with existing customers. The
aim is to build strong consumer loyalty.
52. Sales promotion: An incentive to encourage the sale of a product/service e.g. money off
coupons, buy one, get one free.
53. Secondary data: Researching information which has already been published.
54. Segmentation: The process of dividing a market into groups that display similar
behaviour and characteristics.
55. Skimming pricing: A pricing strategy where an organisation sets an initial high price
and then slowly lowers the price to make the product available to a wider market.
56. Straight Rebuy: Where an organisation reorders without modification to the
specification.
57. SWOT analysis: A model used to conduct a self appraisal of an organisation. The model
looks at internal strengths and weaknesses and external environmental opportunities and
threats.
58. Test marketing: Testing a new product or service within a specific region before
national launch.
59. Usage segmentation: Dividing you segment into non, light, medium or heavy users.