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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.