Marketing Aptitude Study Material – Glossary
- Advertising: Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.
- Arm’s Length Price: The price charged by other competitors for the same or a similar product.
- Augmented Product: A product that includes features that go beyond consumer expectations and differentiate the product from competitors.
- Average Cost: The cost per unit at a given level of production. It is equal to total costs divided by production.
- Brand: A name, term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
- Brand Awareness: Consumers’ ability to identify the brand under different conditions, as reflected by their brand recognition or recall performance.
- Brand Equity: The added value endowed to products and services.
- Call: A call means visiting prospective customers which can be effective by personally calling on prospective customers.
- Catalogue: A printed list of products, often featuring product images, usually with a brief description (including features, alternative product options such as colours, sizes, strengths, etc) and sometimes pricing included. Sometimes promotional deals for purchasing the products will also be included.
- Channel Distribution: An organised network of agencies and institutions which in combination perform all the functions required to link producers with end customers to accomplish the marketing task.
- Co-branding (also dual branding or brand bundling): Two or more well-known brands are combined into a joint product or marketed together in some fashion.
- Cold Call: These are the calls made without prior appointment with the customers which are considered a last resort for the marketers.
- Consumer Behaviour: The study of how individuals, groups and organisations elect, buy, use and dispose goods, services, ideas or experiences to satisfy their needs and wants.
- Convenience Goods: Goods which a consumer purchases frequently, immediately and with minimum effort.
- Conversion: Conversion is the process of converting a prospective client into a buyer.
- Cross Selling This means selling the products to the existing customers.
- Customer Profitability Analysis (CPA): A means of assessing and ranking customer profitability through accounting techniques such as Activity-Based Costing (ABC).
- Customer Relationship Management (CRM): The process of carefully managing detailed information about individual customers and all customer ‘touch points’ to maximize loyalty.
- Database Marketing: The process of building, maintaining and using customer databases and other databases for the purpose of contacting, transacting and building customer relationships.
- Declining Demand: Consumers begin to buy the product less frequently or not at all.
- Direct Marketing: The use of Consumer-Direct (CD) channels to reach and deliver goods and services to customers without using marketing middlemen.
- Dumping: Situation in which a company charges either less than its costs or less than in its home market, in order to enter or win a market.
- E-Business: The use of electronic means and platforms to conduct a company’s business.
- E-Commerce: A company or site offers to transact or facilitate the selling of products and services online.
- E-Marketing: Marketing using the Internet or other digital technology, including such vehicles as E-mails, websites, etc.
- End Users: The person who actually uses a product, whether or not they are the one who purchased the product.
- Environmental Threat: A challenge posed by an unfavourable trend or development that would lead to lower sales or profit.
F – H
- Fad: A craze that is unpredictable, short-lived and without social, economic and political significance.
- Fixed Costs: (overhead) Costs that do not vary with production or sales revenue.
- Forecasting: The art of anticipating what buyers are likely to do under a given set of conditions.
- Horizontal Marketing System: Two or more unrelated companies put together resources or programs to exploit an emerging market opportunity.
- Hybrid Channels: Use of multiple channels of distribution to reach customers in a defined market.
I – J
- Integrated Marketing Communications (IMC): A concept of marketing communications planning that recognises the added value of a comprehensive plan.
- Jobbers: Small-scale wholesalers who sell to small retailers.
- Joint Venture: A company in which multiple investors share ownership and control.
- Latent Demand: Consumers may share a strong need that cannot be satisfied by an existing product.
- Lead: A lead may be characteriZed as follow
- A buyer
- A likely consumer
- A prospective buyer
- A target custo
Leads can be provided by friends, relatives, websites, directories and colleagues which are useful for a marketing staff.
- Market Demand: The total volume of a product that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing programme.
- Market Forecast: The market demand corresponding to the level of industry marketing expenditure.
- Market Logistics: Planning the infrastructure to meet demand, then implementing and controlling the physical flows or materials and final goods from points of origin to points of use, to meet customer requirements at a profit.
- Market-Penetration Pricing: Pricing strategy where prices start low to drive higher sales volume from price-sensitive customers and produce productivity gains.
- Marketer: Someone who seeks a response (attention, a purchase, a vote, a donation) from another party, called the prospect.
- Marketing: The activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.
- Marketing Channels: Sets of interdependent organisations involved in the process of making a product or service available for use or consumption.
- Marketing Information System (MIS): People, equipment and procedures to gather, sort, analyse, evaluate and distribute information to marketing decision-makers.
- Marketing Management: The art and scfence of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value.
- Marketing Research: The systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company.
- Market Segment: The process of definning and sub-dividing a large homogenous market into clearly identifiable segments having similar, needs, wants or demand chracteristics.
- Mark-up: Pricing an item by adding a standard increase to the product’s cost.
- Multi-Channel Marketing: A single firm uses two or more marketing channels to reach one or more customer segments.
- Negative Demand: It occurs when consumers who dislike the product or service and may after even pay to avoid the product or service.
- Non-Existent Demand: Consumers who may be unaware of or uninterested in the product.
- Packaging: All the activities of designing and producing the container for a product.
- Point of Purchase (POP): The location where a purchase is made, typically thought of in terms of a retail setting.
- Points of Difference (POD): Attributes or benefits that consumers strongly associate with a brand, positively evaluated and believe they could not find to the same extent with a competitive brand.
- Point of Parity (POPs): Attribute or benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands.
- Positioning: The act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market.
- Potential Market: The set of consumers who profess a sufficient level of interest in a market offer.
- Product: Anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, person, places, properties, organisations, information and ideas.
- Product-Mix Pricing: The firm searches for a set of prices that maximizes profits on the total mix.
- Prospect: A purchase, a vote, or a donation by a prospective client.
- Pull Strategy: A pull strategy involves motivating customers to seek out your brand in an active process.
- Push Strategy: It involves taking the product directly to the customers via whatever means, ensuring the customer is aware of your brand at the point of purchase.
- Quality: The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
- Questionnaire: A set of questions presented to respondents.
- Quantity Discount: It is a reduction in price to the buyer for buying a specific quantity: often, the larger the quantity, the more the discount.
- Reference Groups: All the groups that have a direct or indirect influence on a person’s attitude or behaviour.
- Relationship Marketing: Building mutually satisfying long-term relationships with key parties, in order to earn and retain their business.
- Retailing: All the activities in selling goods or services directly to final consumers for personal, non-business use.
- Risk Analysis: A method by which possible rates of returns and their probabilities are calculated by obtaining estimates for uncertain variables affecting profitability.
- Retailers: A retailer is a middlemen who procures goods from the wholesalers and sell it to the final consumers.
- Sales Analysis: Measuring and evaluating actual sales in relation to goals.
- Sales Budget: A conservative estimate of the expected volume of sales, used for making current purchasing, production and cash flow decisions.
- Sales Promotion: A collection of incentive tools, rostly short-term, designed to stimulate quicker or greter purchase of particular products or services by consumers or the trade.
- Sales Quota: The sales goal set for a product line, company division or sales representative.
- Selling Concept: Holds that consumers and businesses, if left alone, won’t buy enough of the organisation products.
- Shopping Goods: Goods that the consumer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price and style.
- Social Marketing: Marketing done by a non-profit or government organisation to further a cause, such as ‘say no to drugs’.
- Speciality Goods: Goods with unique characteristics or brand identification for which enough buyers are willing to make a special purchasing effort.
- Strategic Business Units (SBUs): A single business or collection of related businesses that can be planned separately from the rest of the company, with its own set of competitors and a manager who is responsible for strategic planning and profit performance.
- Supply Chain Management (SCM): Procuring the right inputs (raw materials,, components and capital equipment), converting them efficiently into finished products and dispatching them to the final destinations.
- Target Costing: Deducting the desired profit margin from the price at which a product will sell, given its appeal and competitors’ prices.
- Target Market: The part of the qualified available market the company decides to pursue.
- Total Quality Management: An organisation wide approach to continuously improving the quality of all the organisation’s processes, products and services.
U – V
- Unsought Goods: Those goods, the consumer does not know about or does not normally think of buying, like smoke detectors.
- Variable Costs: Costs that vary directly with the level of production.
- Vertical Integration: It is a strategy used by a company to gain control over its suppliers or distributors in order to increase the firm’s power in the market place, reduce transaction cost and secure supplies or distribution channels.
- Warranties: Formal statements of expected product performance by the manufacturer.
- Wholesaling: All the activities in selling goods or services to those who buy for resale or business use.
- Wholesaler: They are market intermediaries who purchase goods from the manufacturers in large quantities and sell them in small lots to the retailers.
- Zero-Level Channel (direct-marketing channel): A manufacturer selling directly to the final customer