Friday, April 26, 2013

Important terms in Marketing Management


Important terms in Marketing Management 

1. Administered Vertical Marketing System: An arrangement that coordinates distribution activities through the market and/or economic power of one channel member or the shared power of two channel members.
 It can also be said that, it is a system in which the channel members, while retaining much of their autonomy, are informally coordinated in their marketing activities by the dominant member of the channel.  Dominance is achieved through the exercise of political or economic power rather than through outright ownership. 


Contractual Channel System / Contractual Vertical Marketing System: A system in which independent channel members at two or more levels have entered into formal agreements to coordinate their marketing efforts in an attempt to take advantage of the economies of scale.  Contractual vertical marketing systems are generally of three types: i. Voluntary chains, ii. Retail cooperatives, and iii. Franchisee operations.

Corporate System / Corporate Vertical Marketing System: A system in which a large corporation controls two or more levels of a marketing channel.  For example, a manufacturer may own the distribution facilities for his product as well as the retail outlets through which it is sold.

2. Advertising: All activities involved in presenting to an audience a nonpersonal, sponsor-identified, paid-for message about a product/service of an organization.
3. Advertising Agency: An independent company that provides specialized advertising services and may also offer more general marketing assistance.
4. Advertising Media: The communication vehicles (such as newspapers, radio, television etc) that carry advertising as well as other information and entertainment.
5. AIDA: A sequence of steps in various forms of promotion, notably personal selling and advertising, consisting of Attention, holding Interest, arousing Desire, and generating buyer Action.
6. Marketing Plan: A written document that presents the master blueprint for a year’s marketing activity for a specified organizational division or major product.
7. Automatic Vending: A form of nonstore retailing where the products are sold through a machine with no personal contact between the buyer and seller.
8. Banner Ad: A boxed-in promotional message often appearing at the top of a web page.
9. Behavioural segmentation: Market segmentation based on consumers’ product-related behaviour, typically the benefits desired from a product and the rate at which the consumer uses the product.
10. Brand: A name and/or mark intended to identify and differentiate the product of one seller or a group of sellers.
11. Brand mark: The part of a brand that appears in the form of a symbol, design, or distinctive colour or types of lettering.
12. Brand Name: The part of a brand that can be vocalized-words, letters, and/or numbers. 
13. Broker: A middleman who brings buyers and sellers together and provides market information to either party and that ordinarily neither physically handles products being distributed nor works on a continuing basis with those sellers or buyers.
14. Business Analysis: It is one of the stages in the new product development process which consists of several steps to expand a surviving idea into a concrete business proposal.
15. Buying Motive: The reason why an individual or an organization buys a specific product or makes purchases from a specific firm.
16. Channel Conflict: A situation in which one channel member perceives another channel member to be acting in a way that prevents the first member from achieving.
17. Comparative Advertising: A form of selective-demand advertising in which an advertiser either directly (by naming a rival brand) or indirectly (through inference) points out the differences among competing brands.
18. Consumer buying-decision process: The series of logical stages, which differ for consumers and organizations, that a prospective purchaser goes through when faced with a buying problem.
19. Cost-plus pricing: A major method of price determination in which the price of a unit of a product is set at a level equal to the unit’s total cost plus a desired profit on the unit.
20. Countertrade: An arrangement under which domestically made products are traded for imported goods.
21. Culture: A complex of symbols and artifacts created by a society and handed down from generation to generation as determinants and regulators for human behaviour.

22. Customer Relationship Management (CRM): An ongoing interaction between a buyer and a seller in which the seller continuously improves its understanding of the buyer’s needs, and the buyer becomes increasingly loyal to the seller because his needs are being so well satisfied.
23. Decline stage: The fourth, part of a product life cycle during which the sales of a product drops.
24. Delphi Method: A forecasting technique, applicable to sales forecasting, in which a group of experts individually and anonymously assess future sales, after which each member has the chance to offer a revised assessment as the group moves toward a consensus.
25. Demand Forecasting: The process of estimating sales of a product during some future period.
26. Demographic segmentation: Subdividing markets into groups based on population factors such as size, age, and growth.
27. Department store: A large-scale retail institution that has a very broad and deep product assortment, tries not to compete on the basis of price, and offers a wide array of customer services.
28. Diffusion: A process by which an innovation spreads throughout a social system over time.
29. Direct distribution: A channel consisting only of producer and final customer, with no middlemen providing assistance.
30. Direct marketing: A form of nonstore retailing that uses advertising to contact consumers who, in turn, purchase products without visiting a retail store.
31. Direct selling: A form of nonstore retailing in which personal contact between a sales person and a consumer occurs away from a retail store.  Sometimes called in-home selling.
32. Discount store: A large-scale retail institution that has a broad and shallow product assortment, low prices, and few customer services.
33. Distribution channel: The set of people and firms involved in the transfer of title to a product as the product moves from producer to ultimate consumer or business user.
34. Drop shipper: A merchant wholesaler that does not physically handle the product being distributed, but instead sells merchandise for delivery directly from the producer to the customer.  Same as desk jobber.
35. Early adopters: A group of consumers that includes opinion leaders, is respected, has much influence on its peers, and is the second group (following the innovators) to adopt an innovation.
36. Economic environment: A set of factors, including the business cycle, inflation, and interest rates, that affect the marketing activities of an organization.
37. 80-20 principle: A situation in which a large proportion of the total orders, customers, territories, or products account for only a small share of the company’s sales or profit, and vice-versa.
38. Electronic Commerce: The buying and selling of goods and services through the use of electronic networks.
39. Family branding: A strategy of using the company name for branding purposes.
40. Family-life-cycle stage: The series of life stages that a family goes through, starting with young single people, progressing through married stages with young and then older children and ending with older married and single people.
41. First – mover advantage: Strategy of entering a market during the introductory stage of a product in order to build a dominant position; also called pioneer advantage.
42. Focus group: A preliminarly data gathering method involving an interactive interview of 4 to 10 people.
43. Franchising: A type of contracatual vertical marketing system that involves a continuing relationship in which franchiser (the parent company) provides the right to use a trademark plus various management assistance in return for payments from a franchisee (the owner of the individual business unit).
44. Gray marketing: Practice of buying a product in one country, agreeing to distribute it in a second country but diverting it to a third country; also called export diversion.
45. Geographic segmentation: Subdividing markets into groups based on geographic locations.
46. Label: The part of a product that carries information about the product and the seller.
47. Laggards: A group of tradition-bound consumers who are the last to adopt an innovation.
48. Leader pricing: A pricing and promotional strategy in which temporary price cuts are made on a few items to attract customers.
49. Mail survey: A method of gathering data by mailing a questionnaire to potential respondents, and asking them to complete it and return it by mail.
50. Market-aggregation strategy: A plan of action under which an organization treats its total market as a single segment – that is, as one mass market whose members are considered to be alike with respect to demand for the product – and thus develops a single marketing mix to reach most of the customers in the entire market. Same as mass market strategy and undifferentiated market strategy.
51. Market penetration strategy: A strategy in which the initial price of a product is set low in relation to the target market’s range of expected prices.
52. Market potential: The total sales volume that all organizations selling a product during a stated time period in a specific market could expect to achieve under ideal condition.
53. Market segmentation: The process of dividing the total market for a good or service into several smaller groups, such that the members of each group are similar with respect to the factors that influence demand.
54. Market share: The proportion of total sales of a product during a stated period of time in a specific market that is capturedby a single firm.
55. Market-skimming pricing: A strategy in which the initial price of a product is set high in relation to the target market’s range of expected prices.
56. Nonstore retailing: Retailing activities resulting in transactions that occur away from a retail store.
57. Odd pricing: A psychological pricing strategy that consists of setting at uneven (or odd
58. Packaging: All the activities of designing and producing the container or wrapper for a product.
59. Perception: The process carried out by an individual to receive, organize and assign meaning to stimuli detected by the five senses.
60. Personal selling: The personal communication of information to persuade somebody to buy something.
61. Personal selling process: The logical sequence of prospecting, preapproach, presenting, and postsale services that a sales person takes in dealing with a prospective buyer.
62. Physical distribution: All the activities involved in the flow of products as they move physically from producer to consumer or industrial user.  Same as logistics.
63. Positioning: A product’s image in relation to directly competitive products as well as other products marketed by the same company.  Alternatively, a firm’s strategies and actions related to favourably distinguishing itself from competitors in the minds of selected groups of consumers.  Same as product positioning.

64. Price: The amount of money and/or other items with utility needed to acquire a product.
65. Price competition: A strategy in which a firm regularly offers products priced aslow as possible, usually accompanied by a minimum of services.
66. Price war: A form of price competition that begins when one firm decreases its price in an effort to increase its sales volume and/or market share, the other firms retaliate by reducing prices on competing products, and additional price decreased by the original price cutter and/or its competitors usually follow.
67. Product life cycle: The aggregate demand over an extended period of time for all brands comprising a generic product category.
68. Product line: A broad group of products intended for essentially similar uses and having similar phyical characteristics.
69. Promotion: The element in an organisation’s marketing mix that serves to inform, persuade, and remind the market of a product and/or the organization selling it in the hope of influencing the recipients’ feelings, beliefs, or behaviour.
70. Promotional mix: The combination of personal selling, advertising, sales promotion, public relations, and publicity that is intended to help an organization achieve its marketing objectives.
71. Psychographic segmentation: Subdividing markets into groups based on personality dimensions, life-style characteristics, and values.
72. Publicity: A special form of public relations that involves any communication about an organization, its products, or its policies through the media that isnot paid for by the sponsoring organization.
73. Public relations: Communication efforts that are designed to favourably influence attitudes toward an organization, its products and its policies.
74. Pull strategy: Promotional effort directed primarily at end users so they will ask middlemen for the product.
75. Push strategy: Promotional efforts that directed primarily at middlemen that are the next link forward in the distribution channel for a product.
76. Reference group: A group of people who influence a person’s attitudes, values and behaviour.
77. Repositioning: Reestablishing a product’s attractiveness in the target market.
78. Retailing: The sale, and all activities directly related to the sale, of goods and services to ultimate consumers for personal, nonbusiness use.  Same as retail trade.
79. Sales forecast: An estimate of probable sales for one company’s brand of a product during a stated time period in a specific market and assuming the use of a predetermined marketing plan.
80. Sales potential: The portion of market potential that a specific company could expect to achieve under ideal condition.
81. Sales promotion: Demand-stimulating devices designed to supplement advertising and facilitate personal selling.
82. Service: An identifiable, intangible activity that is the main object of a transaction designed to provide want satisfaction to customers.
83. Service quality: The degree to which an intangible offering meets the expectations of the customer.
84. Situation analysis: The act of gathering and studying information pertaining to one or more specified aspects of an organization.  Alternatively, a background investigation that helps in refining a research problem.
85. Social class: A division of, or ranking within, society based on education, occupation, and type of residential neighbourhood.
86. Societal marketing concept: A revised version of the marketing concept under which a company recognizes that it should be concerned about not only the buyers of its products but also other people directly affected by its operations and with not only tomorrow but also the long term.
87. Specialty store: A type of retail institution that has a very narrow and deep product assortment (often concentrating on a specialized product line or even part of a specialized product line), that usually strives to maintain manufacturers’ suggested prices, and that typically provides atleast standard customer services.
88. Sub-culture: Groups in a culture that exhibit characteristic behaviour patterns sufficient to distinguish them from other groups within the same culture.
89. Supermarket: A type of retail institution that has a moderately broad and moderately deep product assortment spanning groceries and some nonfood lines, that offers relatively few customer services, and that ordinarily emphasizes price in either an offensive or defensive way.
90. Supply chain management: The combination of distribution channels and physical distribution to make up the total marketing system.
91. SWOT Analysis: It is identifying and evaluating an organisation’s most significant strengths, weaknesses, opportunities and threats.
92. Target market: A group of customers (people of organizations) for whom a seller designs a particular marketing mix.
93. Telemarketing: A form of nonstore retailing in which a sales person initiates contact with a shopper and also closes the sale over the telephone.
94. Telephone survey: A method of gathering data by interviewing people over the telephone.
95. Test marketing: A method of demand forecasting in which a firm markets its new product in a limited geographic area, measures the sales, and then – from this sample – projects the comopany’s sales over a larger area.  Alternatively, a marketing research technique that uses this name approach to judge consumers’ responses to a strategy before committing to a major marketing effort.
96. Trademark: A brand that has been adopted by a seller and given legal protection.
97. Value chain: The combination of a company, its suppliers, and intermediaries, performing their own activities to add value to a product.
98. Vertical Marketing System (VMS): A tightly coordinated distribution channel designed to improve operating efficiency and marketing effectiveness.
99. Wholesaling: The sale, and all activities directly related to the sale, of goods and services to businesses and other organizations for resale, use in producing other goods and services, or the operation of an organization.
100. Environmental Scanning: The process of gathering information regarding a company’s external environment, analyzing it, and foreasting the impact of whatever trends the analysis suggests.  Same as environmental monitoring.

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