AIDA model of communication: A communication model which aims to obtain Attention, Interest, Desire and Action.
Advertising objective: The objective of your communication strategy. To inform of a new development, persuade or remind.
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.
Benefit Segmentation: Dividing a market according to the benefit they seek from a particular product/service.
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.
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.
Break-even: A point for a business where turnover is equivalent to all costs.
Cash cow: A product/service which generates cash for the business, used to finance other areas of the organisation.
Competitive Advantage: Offering a different benefit then that of your competitors.
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.
Competition pricing: Setting a price in comparison with competitors.
Concepttesting: Testing the idea of a new product or service with your target audience.
Brand repositioning: An attempt to change consumer perceptions of a particular brand. For example VW has successfully repositioned the Skoda brand.
Data mining: Application of artificial intelligence to solve marketing problems and aiding forecasting and prediction of marketing data.
Dichotomous question: Questions which limit the responses of the respondent eg YES/NO.
Direct marketing: The process of sending promotion material to a named person within an organisation.
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.
Demography: A study of the population.
Demographic segmentation. Dividing the population into age, gender, income and socio-economic groups amongst other variables..
Early Adopter: Those who adopt a product/service in the early stages of its lifecycle.
Early Majority: Those who adopt a product/service after it has been established and excepted as the standard.
Engels Law: Suggest that peoples spending patterns change as their income rises.
Exclusive distribution: Limiting the distribution of a product to particular retail store to create an exclusive feel to the brand/product.
Econometric modeling: Application of regression techniques in marketing analysis
Focus Group: A simultaneous interview conducted amongst 6-8 respondents. The aim is to obtain qualitative information on the given topic.
Geographic segmentation: Dividing the market into certain geographic regions e.g. towns, cities or neighborhoods.
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.
Intensive distribution: Distributing a product to as many retail outlets as possible.
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.
Lifestyle segmentation: Analyzing consumers activities, interest and opinion (AIOs) to develop a profile on the given segment.
Market Development Strategy: Selling an existing product/service in a new and developing market.
Mass marketing: The promotion of a product or service to all consumers.
Marketing Mix: The strategy of the organisation consisting of products, price, place and promotion strategy (also known as the 4p's).
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.
Market position: The perception of a product or an organisation from the view of the consumer.
Market research: Analysing and collecting data on the environment, customers and competitors for purposes of business decision making.
Modified Rebuy: Where an organiation has to make changes to a specific buying situation.
New buy: Where an organisation faces the task of purchasing a new product/service.
Niche marketing: The process of concentrating your resources and efforts on one particular segment
Objective to task method: Setting a advertising budget based on the desired goals of the communication campaign.
Open ended questions: Questions which encourage the respondent to provide their own answers.
Paretos Law (80/20) : A rule which suggests that 80% of an organisations turnovers is generated from 20% of their customers.
Penetration pricing: A pricing strategy where the organisation sets a low price to increase sales and market share.
Perceptual map: Mapping a product/organisation alongside all competitors in the hope to find a ' positioning gap' in the given market.
Personal selling: Selling a product or services one to one.
Primary data: The process of organising and collecting data for an organisation.
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.
Product Life Cycle: The life stage of a product, includes, introduction, growth, maturity and decline.
Product Cannibalisation: Loosing sales of a product to another similar product within the same product line.
Public relations: The process of building good relations with the organisations various stakeholders.
Relationship marketing: Creating a long-term relationship with existing customers. The aim is to build strong consumer loyalty.
Sales promotion: An incentive to encourage the sale of a product/service e.g. money off coupons, buy one, get one free.
Secondary data: Researching information which has already been published.
Segmentation: The process of dividing a market into groups that display similar behaviour and characteristics.
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.
Straight Rebuy: Where an organisation reorders without modification to the specification.
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.
Test marketing: Testing a new product or service within a specific region before national launch.
Usage segmentation: Dividing you segment into non, light, medium or heavy users.