Ad hoc market research: Ad-hoc research focuses on specific marketing problems. It involves the collection of data at one point in time from one sample of respondents.
Added value: Added value refers to the increase in worth of a product or service as a result of a particular activity. In the context of marketing, the added value is provided by features and benefits over and above those representing the “core product.”
Advertising: Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor.
Advertising budget: The total amount of money that a marketer allocates for advertising over a period of time.
After-sales service: The services received after the original goods or services have been paid for. Often this service is provided as part of a warranty or guarantee.
Agent: Part of the distribution channel. An agent is effectively a wholesaler who represents buyers and sellers on a relatively permanent basis, performs only a few functions and does not take title to goods.
Ambush marketing: A deliberate attempt by a business or brand to associate itself with an event (often a sporting event) in order to gain some of the benefits associated with being an official sponsor without incurring the costs of sponsorship. For example by advertising during television coverage of the event.
Augmented brand: The additional customer services and benefits (“added value”) that are built around the core product or service offering.
Available market: The total group of customers who have an interest in a interest in a product or service, have access to it, and have the ability to buy it.
Awareness: Advertising or other promotional activity (e.g. public relations) whose primary purpose is to increases general knowledge of the company, and to make people feel more positive towards it.
Behavioral segmentation: Behavioral segmentation divides customers into groups based on the way they respond to, use or know of a product.
Benchmarking: The process of comparing the products and services of a business against those of competitors in a market, or leading businesses in other markets, in order to find ways of improving quality and performance.
Benefit segmentation: Benefit segmentation relates to the process of dividing a market based on the specific benefits consumers seek from a product. For example, some car buyers want safety and security from their car, while others look for comfort or speed. A car manufacturer, therefore, has to decide which benefits to offer – and how these benefits should be communicated to the customer.
Brand: A brand is the specific type of the product form. A brand – represented by a brand name, symbol, design, logo, packaging – is the identity of a particular product form that customers recognize as being different from others.
Brand building: Developing a brand's image and standing with a view to creating long term benefits for brand awareness and brand value.
Brand equity: Brand equity refers to the value of a brand. Brand equity is based on the extent to which the brand has high brand loyalty, name awareness, perceived quality and strong product associations. Brand equity also includes other “intangible” assets such as patents, trademarks and channel relationships.
Brand extension: Brand extension refers to the use of a successful brand name to launch a new or modified product in a new market. Virgin is perhaps the best example of how brand extension can be applied into quite diverse and distinct markets.
Brand image: Brand image refers to the set of beliefs that customers hold about a particular brand. These are important to develop well since a negative brand image can be very difficult to shake off.
Brand loyalty: A strongly motivated and long standing decision to purchase a particular product or service.
Brand recognition: A customer's awareness that a brand exists and is an alternative to purchase.
Breakeven: Breakeven is achieved when total contribution is equal to total fixed costs. Addition contribution earned after this point becomes profit.
Break-even pricing: Setting a price to achieve break-even on the costs of making and marketing a product (direct costs). Breakeven is achieved when the total contribution from sales priced in this way at least equal the fixed costs of the business.
Business portfolio: The business portfolio is the collection of businesses and products that make up the business.
Business to business: Marketing activity directed from one business to another (as opposed to a consumer). This term is often shortened to “B2B.”
Buying behavior: Buying behavior concerns the process that buyers go through when deciding whether or not to purchase goods or services. Buying behavior can be influenced by a variety of external factors and motivations, including marketing activity.
Call prep: A necessary step in the sales process. Call preparation is necessary in the qualification of a prospect. Research must be conducted before the initial phone call on various aspects of a prospect’s situation, including line of work, job title, and potential needs the prospect may be encountering.
Cause marketing: A type of marketing involving the cooperative efforts of a "for profit" business and a non-profit organization for mutual benefit.
Channel conflict: Disagreement among members of a distribution channel about who should be paid what and what roles each should play. Channel conflict often occurs when a business uses a multi-channel approach to distribution.
Closing the sale: Closing the sale is the ultimate goal of a salesperson. Throughout the selling process, a salesperson methodically brings the prospect to agreement in accepting product or services offered.
Cognitive dissonance: Cognitive dissonance is an customer effect commonly observed after a major purchase whereby the customer feels uncertainty about whether the purchase should have been made. Post-purchase promotion (particularly advertising) has a role to play to reduce the incidence and effect of cognitive dissonance.
Competitive advantage: A competitive advantage is a clear performance differential over the competition on factors that are important to customers.
Competitor benchmarking: Competitor benchmarking compares customer satisfaction with the products, services and relationships of the business with those of key competitors.
Consumer buyers: Consumer buyers are those who purchase items for their personal consumption.
Consumer markets: Consumer markets are the markets for products and services bought by individuals for their own or family use.
Continuous market research: Continuous research involves interviewing the same sample of people, repeatedly.
Contribution: Contribution per unit can be defined as selling price less variable costs. Overall contribution is the difference between total sales revenues and variable costs.
Cross selling: Using a customer’s buying history to select them for related offers, e.g. a car alarm for new car buyers.
Customer demand: Consumer demand is a want for a specific product supported by an ability and willingness to pay for it.
Customer loyalty: Feelings or attitudes that incline a customer either to return to a company, shop or outlet to purchase there again, or else to re-purchase a particular product, service or brand.
Customer need: A need is a basic requirement that an individual wishes to satisfy.
Customer satisfaction: The provision of goods or services which fulfill the customer’s expectations in terms of quality and service, in relation to price paid.
Customer wants: A want is a desire for a specific product or service to satisfy the underlying need.
Decline stage: The last stage of a product's life cycle, during which sales fall rapidly.
Demographic segmentation: Demographic segmentation consists of dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality.
Depth interview: A lengthy, one-to-one structured interview, examining in detail a consumer's views about a product.
Differentiation: A marketing strategy aimed at ensuring that products and services have a unique element to allow them to stand out from the rest.
Direct mail: The delivery of an advertising or promotional message to customers or potential customers by mail.
Direct marketing: The planned recording, analysis and tracking of customer behavior to develop a relational marketing strategies.
Direct response advertising: Direct response advertising is that which incorporates a contact method such as a phone number, address and enquiry form, web site URL or e- mail address. This is done with the intention of encouraging the recipient to respond directly to the advertiser by requesting more information, placing an order etc. The use of this technique on television is commonly referred to as DRTV advertising.
Distribution channel: The network of organizations necessary to distribute goods or services from the manufacturers to the consumers; the distribution channel therefore potentially consists of manufacturers, distributors, wholesalers, and retailers.
Distributors: Companies that buy and sell on their own account but tend to deal in the goods of only certain specified manufacturers.
Early adopters: People who choose new products carefully and are often consulted by people from the remaining adopter categories.
Early majority: People who adopt products just prior to the average person.
Earned media: Media placements generated by public relations efforts versus paid media or advertising. It generally is thought of to have more credibility with the buying public than paid media.
E-commerce: The use of technologies such as the Internet, electronic data exchange and industry extranets to streamline business transactions.
Elevator pitch: A condensed overview of the overlapping aspects of a salesperson’s product or service, not to last longer than the typical elevator ride.
Endorsement: The promotion of some kind of product recommendation or affirmation, usually from a celebrity, implying to the potential customer that a product is good.
Escalator pitch: A condensed overview of the overlapping aspects of a salesperson’s product or service, not to last longer than the typical escalator ride – generally thought of to be shorter than an elevator pitch.
Family brand name: A family brand name is used for all products. By building customer trust and loyalty to the family brand name, all products that use the brand can benefit.
Family life cycle: The stages of family life based on demographic data that are useful in defining the markets for certain goods and services. Each group has its own specific and distinguishable needs and interests.
Fast-moving consumer goods: Fast-moving consumer goods are those that sell in high volumes, with low unit value, and have fast consumer repurchase. Good examples include ready meals, baked beans, newspapers, etc.
Focus group: A small group of sample customers who are brought together into a group discussion to measure their response to a marketing stimulus such as a new brand or product.
Forecasting: The process of estimating future demand by anticipating what buyers are likely to do under a given set of marketing conditions (e.g. economic confidence, disposal income, pricing levels).
Franchising: The selling of a license by the owner (franchisor) to a third party (franchisee) permitting the sale of a product or service for a specified period. In business format franchising the agreement will involve a common brand and marketing format. Many service businesses are operated under franchise include well-known brands such as Burger King, KFC and KwikPrint.
Gender segmentation: The segmentation of markets based on the sex of the customer. The cosmetic industry is a good example of widespread use of gender segmentation.
Geographic segmentation: Geographic segmentation divides markets into different geographical units.
Growth stage: The stage at which a product's sales rise rapidly and profits reach a peak, before leveling off into maturity.
Impulse buying: Behavior that involves no conscious planning but results from a powerful, persistent urge to buy something immediately.
Industrial buyers: Industrial buyers are those who purchase items on behalf of their business or organization.
Industrial market: Industrial markets involve the sale of goods between businesses. These are goods that are not aimed directly at consumers.
Influencer: A person in a group-buying situation (e.g. a family) who exerts significant influence in the final buying decision.
Initiator: A person in a group-buying situation (e.g. a family) who first suggests buying a particular product or service.
Innovators: Innovators are those who adopt new products first. They are usually relatively young, lively, intelligent, socially and geographically mobile. They are often of a high socioeconomic group (“AB’s”).
Intensive distribution: Intensive distribution aims to provide saturation coverage of the market by using all available outlets.
Internal marketing: The process of eliciting support for a company and its activities among its own employees, in order to encourage them to promote its goals. This process can happen at a number of levels, from increasing awareness of individual products or marketing campaigns, to explaining overall business strategy.
Introduction stage: A product's first appearance in the marketplace, before any sales or profits have been made.
Involvement: The level of interest, emotion and activity which the consumer is prepared to expend on a particular purchase.
Labeling: Packaging information that can be used for a variety of promotional, informational and legal purposes.
Laggards: The group of consumers who are typically last to buy a new product.
Late majority: People who are quite skeptical about new products but eventually adopt them because of economic necessity or social pressure.
Lifestyle: Lifestyle is a person’s pattern of living as expressed in his or her activities, interests and opinions.
Lifestyle segmentation: Lifestyle segmentation of a market is based on identifying lifestyle characteristics of customers that enable target customer groups to be identified. Many businesses now segment their markets by lifestyles, as these are increasingly seen as good predictors of consumer behavior. Most companies use off-the-shelf research-agency classifications (such as the Target Group Index), because of the high cost and complexity of developing their own.
Logo: A graphic, usually consisting of a symbol and/or group of letters that identifies a company or brand.
Macro forecasting: Macro forecasting is concerned with forecasting markets in total. This is about determining the existing level of Market Demand and considering what will happen to market demand in the future.
Mail panels: Groups of consumers selected to represent a market or market segment who agree to be regularly interviewed by mail.
Manufacturer brand: Manufacturer brands are created by producers and bear their chosen brand name. The producer is responsible for marketing the brand. The brand is owned by the producer. By building their brand names, manufacturers can gain widespread distribution (for example by retailers who want to sell the brand) and build customers.
Marker leader: The business in a market with the largest market share. The market leader, particularly one with a dominant market share, is often “followed” by competitors in terms of pricing and product strategy.
Market: A market is the demand for a particular product or service, often measured by sales during a specified period.
Market challenger: A business in a market that is fighting hard to increase its market share.
Market concentration: Market concentration is the proportion of market value that is owned by the leading brands or products/companies in the market. Where the market leaders own a large part of the overall market, the market is said to be highly concentrated. By contrast, where the market leader has a relatively small market share and there are many other competitors, a market is said to be “fragmented.”
Market development: The process of growing sales by offering existing products (or new versions of them) to new customer groups (as opposed to simply attempting to increase the company’s share of current markets).
Market entry: The launch of a new product into a new or existing market. A different strategy is required depending on whether the product is an early or late entrant to the market; the first entrant usually has an automatic advantage, while later entrants need to demonstrate that their products are better, cheaper and so on.
Market follower: A firm that is happy to follow the leaders in a market place without challenging them, perhaps taking advantages of opportunities created by leaders without the need for much marketing investment of its own - see also 'market challenger' and 'market leader.'
Market positioning: A marketing strategy that will position a business’ products and services against those of its competitors in the minds of consumers. To achieve positioning success it is suggested that there are four basic competitive strategies that a company can follow (based on work by Porter):
- Cost leadership - the company tries to achieve lowest costs of production and distribution
- Differentiation - making use of specific marketing mixes - Focus - paying attention to a few market segments
The fourth strategy is a losing strategy in which a business pursues a middle-of-the-road path. Businesses that try to be good at everything are rarely particularly good at anything.
Market research: The systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services.
Market segment: A customer group within the market that has special characteristics which are significant to marketing strategy.
Market segmentation: Segmentation involves subdividing markets, channels or customers into groups with different needs, to deliver tailored propositions which meet these needs as precisely as possible.
Market share: Market share can be defined as the percentage of all sales within a market that is held by one brand / product or company.
Market targeting: Market targeting is the process of evaluating each market segment and selecting the most attractive segments to enter with a particular product or product line.
Marketing: The all-embracing function that links the business with customer needs and wants in order to get the right product to the right place at the right time.”
Marketing audit: A systematic examination of a business’s marketing environment, objectives, strategies, and activities with a view to identifying key strategic issues, threats and opportunities.
Marketing concept: The marketing concept is about matching a business’ capabilities with customer wants.
Marketing intelligence: The composite of all data and ideas available within an organization that assists in decision-making.
Marketing plan: A detailed statement (usually prepared annually) of how a company's marketing mix will be used to achieve its market objectives. A marketing plan is usually prepared following a marketing audit.
Media analysis: Media analysis is a term used in advertising. It refers to an investigation into the relative effectiveness and the relative costs of using the various advertising media in an advertising campaign.
Micro forecasting: Micro forecasting is concerned with detailed unit sales forecasts. This is about determining a product’s market share in a particular industry and considering what will happen to that market share in the future.
Mission: A mission describes the organization’s basic function in society, in terms of the products and services it produces for its customers.
Mission statement: A mission statement is a formal description of the mission of a business.
Multi-channel marketing: When a business distributes its products through more than one distribution channel, this is known as multi-channel marketing. Retail chains, for example Argos, besides using the shops to distribute their products, quite often also use catalogue selling. The main purpose of multi-channel marketing is to more effectively reach different customer segments.
Multi-segment strategy: A strategy by which a business directs its marketing efforts towards two or more market segments by developing a marketing mix for each.
New product: A new product can be defined as a good, service or idea that is “perceived” by some potential customers as new. It may have been available for some time, but many potential customers have not yet adopted the product nor decided to become a regular user of the product.
Niche marketing: Niche marketing refers to the exploitation of comparatively small market segments by businesses that decide to concentrate their efforts. Niche segments exist in nearly all markets.
Non-personal communication: Methods of promotion that do not generate any personal feedback. Advertising is the best example of this.
Normal goods: Normal goods have a positive income elasticity of demand so as income rise more is demand at each price level.
Objectives: Measurable aims of a business set for a given period (e.g. marketing objectives for the next year).
Occasion segmentation: A basis of segmenting a market based on occasions when buyers get the idea to make a purchase, actually buy, or use a purchased item.
Opportunities: Opportunities are any feature of the external environment which creates conditions that a business can exploit to its advantage. If the business is successful in exploiting opportunities, then it will be better placed to achieve its objectives.
Own-label brand: Own-label brands are created and owned by businesses that operate in the distribution channel – often referred to as “distributors”. Often these distributors are retailers, but not exclusively. Sometimes the retailer’s entire product range will be own-label. However, more often, the distributor will mix own-label and manufacturers brands.
Packaging: The activities of designing and producing the container or wrapper for a product.
Penetration strategy: A marketing strategy based on low prices and extensive advertising to increase a product's market share. For penetration strategy to be effective the market will have to be large enough for the seller to be able to sustain low profit margins.
Personal selling: Oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale.
Porter’s Five Forces Model: An analytic model developed by Michael E. Porter. The five forces in terms of which the model analyses businesses and industries are: Buyers, Suppliers, Substitutes, New Entrants and Rivals.
Portfolio planning: Portfolio planning is the process of managing groups of brands and product lines.
Positioning: Positioning is how a product appears in relation to other products in the market.
Price: The price of a product may be seen as a financial expression of the value of that product.
Primary research data: Primary market data is data collected specifically for the market research project and obtained directly from the relevant source.
Problem/Need recognition: The first stage in the buying process where the potential customer recognizes that a problem or a need can be met by buying a product or a service.
Product: A product is defined as anything that is capable of satisfying customer needs.
Product class: Product class is a broad category of product such as cars, washing machines, newspapers.
Product form: Within a product class, there are different forms that the product can take. For example, people carriers or two-seater sports cars are product forms within the motorcars product class.
Product group: A product group (or product line) is a group of brands that are closely related in terms of their functions and the benefits they provide.
Product life cycle: The course of a product's sales and profitability over its lifetime. The model describes five stages, each of which represents a different opportunity for the marketer:
- Development - Introduction - Growth?- Maturity
Product map: A product map defines the market in terms of the way buyers perceive key characteristics of competing products.
Product mix: The set of all product lines and items that a particular business offers for sale to buyers.
Product quality: The ability of a product to perform its functions (“fit for purpose”). Quality is a function of several factors including reliability and ease of use.
Promotion: One of the four “P’s” of the marketing mix. Promotion is all about businesses communicating with customers.
Promotional mix: The promotional mix consists of a blend of five main kinds of promotional tools: advertising; direct marketing; personal selling; sales promotion and public relations.
Psychographic segmentation: Psychographic (or “lifestyle”) segmentation seeks to classify people accordingly to their values, opinions, personality characteristics and interests.
Public relations: The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics.
Publicity: Promotional activities designed to promote a business and its products by obtaining media coverage not paid for by the business.
Pull promotion: Pull promotion, in contrast to Push promotion, addresses the customer directly with a view to getting them to demand the product, and hence “pull” it down through the distribution chain. It focuses on advertising and above the line activities. See also 'push promotion.'
Purchase decision: The stage in the customer buying process when the purchase decision is actually made.
Push promotion: Push promotion relies on the next link in the distribution chain - e.g. a wholesaler or retailer - to “push” out products to the customer. It revolves around sales promotions - such as price reductions and point of sale displays - and other below the line activities. See also 'Sales Promotion.'
Qualitative forecasting: Qualitative forecasting is based on experience and judgment. Examples include general surveys of customers, distributors and the sales force.
Qualitative research: Research that deals with information too difficult or expensive to quantify, such as subjective opinions and value judgments, typically unearthed during interviews or discussion groups.
Quantitative forecasting: Quantitative forecasting is based on facts. Good examples include time-series analysis and statistical surveys of customer purchasing behavior.
Quantitative research: Market research that concentrates on statistics and other numerical data, gathered through opinion polls, customer satisfaction surveys and so on. Compare 'qualitative research.'
Questionnaire: Base document for research purposes, providing the questions and structure for an interview or self-completion and providing space for respondents' answers.
Quota sampling: A sampling method in which the final choice of respondents is left to the interviewers, who base their choices on two or three variables (such as age, sex and education).
Random sampling: A sampling method in which all the units in a population have an equal chance of appearing in the sample.
Retailers: Retailers operate outlets that trade directly with household customers.
RoverMail: An HTML email tool offered by RedRover Sales & Marketing that allows for highly targeted audience segmentation and comprehensive results tracking.
Sales forecast: The sales forecast is the expected level of company sales based on a chosen marketing plan and an assumed marketing environment.
Sales management: A branch in business with concentration on the practical aspects of sales techniques and management of sales operations. This may include coaching or mentoring the sales team, reviewing and monitoring sales information, and forecasting sales productivity for senior management.
Sales objections: In the process of selling, a prospect may present a challenge to the offering of product. This verbal or written challenge may question pricing, timing or quality of the product offered.
Sales presentation: In the sales process, a salesperson will give a line of talk that is intended to initiate discussion and persuade the prospect to accept the offer of product or service.
Sales promotion: Sales promotion refers to any activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door- to-door calling, telephone-selling, personal letters on other methods.
Sales prospecting: A generalized targeting of potential prospects with the goal of completing a sale. This targeting may occur in everyday social situations or through strategic business strategies.
Sales qualification: To use time effectively, many salespeople assess the eligibility of a prospect before initiating discussion. This evaluation of eligibility may include budget analysis, competitors in place, and potential need of product or service offered. This may be construed as the “narrowing down” of sales prospects.
Sales referrals: To direct to a source for help or information in sales. A useful tool in establishing credibility with a prospect.
Sales support: Once a sale has been made, a relationship will develop between the product or services manufacturer and the customer over the duration of the product life cycle. This may include reinforcements such as warranties, upgrades or additional services.
Sample: A small group of items selected from a larger group to represent the characteristics of the larger group. Samples are often used in marketing research because it is not feasible to interview every member of a particular market; however, conclusions about a market drawn from a sample always contain a sampling error and must be used with caution. The larger the sample, in general, the more accurate will be the conclusions drawn from it.
Secondary research data: Secondary market data is data that has already been obtained, analyzed and used for other purposes or for general reference.
Segmentation variables or bases: The dimensions or characteristics of individuals, groups or businesses that are used for dividing a total market into segments.
Selective distribution: Selective distribution involves a producer using a limited number of outlets in a geographical area to sell products.
Soft goods: Soft goods are similar to consumer durables, except that they wear out more quickly and therefore have a shorter replacement cycle. Examples include clothes and shoes.
Sponsorship: Supporting an event, activity or organization by providing money or other resources that is of value to the sponsored event. This is usually in return for advertising space at the event or as part of the publicity for the event.
Strapline: A slogan often used in conjunction with a brand name, advertising and other promotional methods (e.g. “Guinness is good for you”).
Strategic business unit (“SBU): A SBU is a unit of the company that has a separate mission and objectives and that can be planned independently from the other businesses. An SBU can be a company division, a product line or even individual brands - it all depends on how the company is organized.
Stratified sampling: A sampling method in which the population of interest is divided according to a common characteristic or attribute and a probability sampling is then conducted within each group.
Strengths: Strengths are a particular skill, resource or distinctive competence which the business possesses and which will enable it to achieve its stated objectives. Strengths are a source of competitive advantage. As such they should be protected and built upon.
SWOT Analysis: An assessment of strengths, weaknesses, opportunities and threats. A vital part of the strategic planning process designed to facilitate a better understanding of an organization’s current and desired positioning in the marketplace.
Target market: The group of potential customers sharing common needs and characteristics that a business decides to serve.
Telemarketing: Telemarketing (sometimes also referred to as “telesales”) is a method of direct marketing in which the telephone is used to contact potential customers in order to reduce the time spent in making personal visits. Traditionally, products such as double glazing and central heating have been marketed using this technique.
Telephone surveys: Surveys in which respondents' answers to a questionnaire are recorded by interviewers on the phone.
Test marketing: Test marketing occurs when a new product is tested with a sample of customers, or launched in a restricted geographical area, to judge customers' reactions. If the product is unsuccessful, the business will have minimized its costs and can either make changes before the main launch or decide to discontinue the product. Test marketing has a disadvantage in that competitors learn about the new product before its full launch.
Threats: Threats are any aspect of the external environment which cause problems and which may prevent achievement of objectives. Almost by definition, what presents a threat to one business offers an opportunity to other businesses.
Trademark: Legal designation indicating that the owner has exclusive use of a brand.
Undifferentiated marketing: Undifferentiated marketing is the marketing of a product aimed at the widest possible market. For example, in the holiday market, the sale of short-haul summer-sun package holidays to the Mediterranean is an undifferentiated mass-market product.
Unique selling proposition: A unique selling proposition (“USP”)is a customer benefit that no other product can claim.
Vision: The long-term aims and aspirations of the company for itself.
Weaknesses: Weaknesses are any aspect of the business which may prevent the business from achieving its objectives. Weaknesses are a source of competitive disadvantage. Management should seek ways to reduce or eliminate weaknesses before they are exploited further by the competition.
Wholesaler: Often part of the distribution channel; involves the selling of goods in large quantities to be retailed by others.