BASIC TERMINOLOGIES OF MARKETING

Advertising

Paid form of a non-personal communication by industry, business firms, nonprofit organizations, or individuals delivered through the various media. Advertising is persuasive and informational and is designed to influence the purchasing behavior and thought patterns of the audience. Advertising may be used in combination with sales promotions, personal selling tactics, or publicity.

Affiliate marketing

Using a network of partners to market a companyusually internet based in which a company rewards or compensates an affiliate for each customer directed to it. Affiliates can include blogs, shopping sites, and comparison sites.

Benefit

A desirable attribute of a good or service, which customers perceives that they will get from purchasing and consuming/using it. Whereas vendors sell features ("a high speed 1/2" drill bit with tungsten-carbide tip"), buyers seek the benefit (a 1/2" hole).

Brand

A unique design, sign, symbol, words, or a combination of these, employed in creating an image that identifies a product and differentates or positions it from competitors. Over time, this image becomes associated with a level of credibility, quality, and satisfaction in consumers' minds (also see differentiation and positioning). Use of the names, logos, symbols, trademarks, or product desi identify a product.

Branding

Clusters

Customer profiles based on lifestyle, demographic, shopping behavior, or appetite for fashion. Example: Ready-to-eat meals may be heavily influenced by the ethnic make-up of a stores shoppers, while beer, wine, and spirits categories in the Stage in product development process where the decision to order

Commercialization

full-scale production and launch is made. The act of exchange, buying, selling of a commodity on a large scale for profit. This also describes the flow of goods and services from producer to consumer.

Consumer

A purchaser of a good or service at retail, or an end user not necessarily a purchaser, in the distribution chain of a good or service (gift recipient).

Demographics

Consumer statistics regarding socioeconomic factors, including gender, age, race, religion, nationality, education, income, occupation and family size. Each demographic category is broken down according to its characteristics by the various research companies.

Direct Marketing

Selling via direct contact with the prospective customer. Direct marketing differs from general marketing in that the result of a promotion is measurable in terms of response. Primary direct marketers include magazine publishers, catalog houses, political campaign organizations, and financial institutions.

Distribution

Movement of goods and services through the distribution channel, to the final customer, consumer, or end user, with the movement of payment (transactions) in the opposite direction back to the original producer or supplier.

Exclusive distribution

Contracting with single channel members to move the product through the commercialization schedule. (Not to be confused with Exclusive exposure: Selling a product only through a single outlet in a particular region or market. Exclusive retail outlets are expected to perform many, if not most of the marketing functions to promote and support sales.)

Homogeneous markets or products

Geographic markets or products the customer sees is basically the same (sharing similar attributes, or easily substitutable products). Homogeneous markets share similar traits or conditions. As regards the need for winter snow blower equipment, Minneapolis

and Cleveland would be homogeneous (same winter weather conditions).

Intermediate good

Physical resources applied to or used in the creation of a final product. For example, sugar may be consumed directly or used in the manufacturing of ice cream. (Changing the shape or form of a resource in the creation of another product is call a transformation. (Also see transformation and transvection) Description, instructions, and warnings printed on products and packaging as required by law or as an aide to the consumer.

Labeling

Macromarketing

Study of marketing processes, activities, institutions, and results from a broad perspective such as a nation, in which cultural, political, and social interaction are investigated. It is marketing in a larger context than any one firm: the delivery of a standard of living.

Market

Economic system bringing together the forces of supply and demand for a particular good or service. A market consists of customers, suppliers, and channels of distribution, and mechanisms for establishing prices and effecting transactions where exchanges take place.Often, marketers will define primary, secondary, and even tertiary markets to help it allocate its limited resources in the most effective and efficient manner What an organization wishes to achieve (the end result). They focus on existing products in existing markets, new products for existing markets, existing products for new markets and new products for new markets (Marketing Opportunity Grid). Most importantly, they can be measured in terms of sales volume, sales value, market share, profit, percentage of penetration outlets, awareness and esteem. Savvy marketers also add timelines and assign responsibilities to individuals to assure accountability.

Marketing objectives

Marketing Strategy

Plan allowing the organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. It is comprised of a target market and marketing mix.

Motivation

Implies an emotion or desire that causes the customer to think and act. It's a driving force arising from personal temperament or constitution that can be stimulated through incentives applied to an external influence (as an expected reward) inciting action. In marketing, it's the energy/fuel that drives the thought process, designed to result in a specific action by the consumer (purchase).

New product

"New" means substantially changed or altered in form. Technically, "new" has a shelf life of 6 months before it has to be removed (or the product altered again). Simply changing the packaging does not constitute the word "new" being placed on the product, other than to say "New Packaging."

Packaging

Promoting the product on the shelf and protecting the product during shipment. Designing a package also includes consideration or size and weight to make transportation and storage more effective and efficient (as in sizing containers to fit neatly onto pallets).

Price bundling

Selling 2 or more goods or services as a single package, as in Taco Bell offers 2 hard tacos, a burrito, and a drink in a package for 1 price (usually a saving if you add up the prices of each individual item).

Profit

What remains after all costs (direct & indirect) have been covered from the initial selling price.

Publicity

Involves supplying information that is factual, interesting, and newsworthy to media not controlled by the organization (radio, television, magazines, newspapers, and trade journals). It is an uncontrolled method of placing messages in the media because the source does not pay the media for placement.

Rating

Broadcast size of an actual listening or viewing audience for a particular program or commercial as compared to the size of the potential audience (all households in a geographic area that have

broadcast receiverswhether or not these broadcast receivers are turned on). One rating point represents 1% of the households making up the potential audience. (Also see Share) Channel members in a distribution network or commercialization schedule that sell directly to the end user. In the U.S., thats where sales tax is collected. If a producer sells direct to consumers, it is a retailer (it charges and collects sales tax.) It's where possession utility takes place.

Retail

Revenue

Amounts generated from sale of goods or services, or any other use of capital or assets before any costs or expenses are deducted. Also called sales.

Risk

Uncertainty of falling short of goals in a marketing plan. It's also all the unknowns that are uncontrollable by the marketer. That's why researching the needs of the target market is imperative towards reducing risk Percentage of a media audience reached with an advertisement among those watching at the time. This is often a misleading term. For example, a 50 share (half of all viewers) means only that half of those watching at that time had the potential to see the ad. But if only half of 2 million TV households in a given market had their TV sets tuned to that program, that would equate to 500,000 households (only half of 1 million TV households).

Share

Target market

Group of persons for which a firm creates and maintains a product mix that specifically fits the needs and preferences of that group. For example, the furniture market can be divided into segments described as Early American, contemporary, or traditional.

Universal product code (UPC)

Assigned 12-digit number used to identify a product. Translated into barcodes consisting of a series of vertical parallel bars, it can be used for scan entry, by an electronic cash register, or information for product sales and inventory tracking. The first set of digits are the same for all of the manufacturer's products and represent the name of the manufacturer. The next set refers to the product itself and are assigned by the manufacturer to the product of his choice

Utility

Ability of the product to satisfy customers needs and wants. The 4 major marketing utilities include form utility, time utility, place utility, and possession utility. More recent studies include psychological utility To feel the need for, craving, desire, or wish to have or possess. It is often said that "wants are manifestations of unmet needs." Channel members in a distribution network (commercialization schedule) that sell to other wholesalers and retailers. Generally, it involves sales to other organizations that are not the intended end user (customer) for the product

Wants

Wholesale