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Marketing Glossary
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AIDA Model Of Communication:
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A communication model which aims to obtain Attention, Interest, Desire and Action.
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Advertising Objective:
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The objective of your communication strategy. To inform of a new development, to persuade or to remind your target audience.
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Benefit:
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The gain obtained from the use of a particular product or service. Consumers purchase products and/or services because of their desire to gain these built in benefits.
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Benefit Segmentation:
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Dividing a market according to the benefit they seek from a particular product/service.
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Brand Name:
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A specific Identifier for products or services that can be a name, term, sign or symbol. A well managed brand should uphold certain values and beliefs.
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Brand Extension Strategy:
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The process of using an existing brand name to extend on to a new product/service e.g. the application of the brand name “Smirnoff” on a number of business activities.
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Break-even:
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A point for a business where turnover is equivalent to all costs.
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Channel Audience:
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A specific third party audience that channels or refers ‘target audience’ business to an organization.
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Competitive Advantage:
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Offering a different benefit then that of your competitors.
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Competitor Analysis:
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Process of understanding and analyzing a competitor’s strengths and weaknesses, with the aim that an organization will find a competitive positioning difference within the market.
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Competition Pricing:
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Setting a price in comparison with competitors.
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Concept Testing:
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Testing the idea of a new product or service with your target audience.
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Brand Repositioning:
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An attempt to change consumer perceptions of a particular brand. For example VW has successfully repositioned the Skoda brand.
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Data Mining:
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Application of artificial intelligence to solve marketing problems and aiding forecasting and prediction of marketing data.
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Dichotomous Question:
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Questions which limit the responses of the respondent eg YES/NO.
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Direct Marketing:
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The process of sending promotion material to a named person within an organization.
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Diversification:
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A growth strategy of an organization to provide new products or services. The new products could be related or unrelated to the organization’s core activities.
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Demography:
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A study of the population.
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Demographic Segmentation:
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Dividing the population into age, gender, income and socio-economic groups amongst other variables.
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Early Adopter:
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Those who adopt a product/service in the early stages of its lifecycle.
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Early Majority:
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Those who adopt a product/service after it has been established and accepted as the standard. As opposed to the “Laggards”.
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Engels Law:
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Suggest that peoples spending patterns change as their income rises.
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Exclusive Distribution:
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Limiting the distribution of a product to a particular retail store to create an exclusive feel to the brand/product.
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Focus Group:
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A simultaneous interview conducted amongst 6-8 respondents. The aim is to obtain qualitative information on the given topic.
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Geographic Segmentation:
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Dividing the market into certain geographic regions e.g. towns, cities or neighborhoods.
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Innovator:
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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.
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Intensive Distribution:
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Distributing a product to as many retail outlets as possible.
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Laggards:
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Those consumers who adopt the product/service as it reaches the end of its lifecycle. They usually pay a competitive price for the benefit of waiting. As opposed to the “Early Majority”.
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Lifestyle Segmentation:
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Analyzing consumer activities, interest and opinion (AIOs) to develop a profile on the given segment.
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Market Development Strategy:
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Selling an existing product/service in a new and developing market.
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Mass Marketing:
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The promotion of a product or service to all consumers.
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Marketing Mix:
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The marketing strategy of an organization which takes into consideration; products, price, place and promotion strategy (also known as the 4p's).
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Marketing Planning:
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A written document which plans the marketing activities of an organization for a given period. The document should include an environmental analysis, marketing mix strategies and any contingency plans should an organization not reach their given objectives.
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Market Position:
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The perception of a product or an organization from the view of the consumer.
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Market Research:
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Analyzing and collecting data on the environment, customers and competitors for purposes of business decision making.
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Modified Rebuy:
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Where an organization has to make changes to a specific buying situation.
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New Buy:
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Where an organization faces the task of purchasing a new product/service.
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Niche Marketing:
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The process of concentrating your resources and efforts on one particular segment
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Objective To Task Method:
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Setting an advertising budget based on the desired goals of the communication campaign.
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Open Ended Questions:
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Questions which encourage the respondent to provide their own answers.
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Paretos Law (80/20):
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A rule which suggests that 80% of an organizations turnover is generated from 20% of their customers.
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Penetration Pricing:
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A pricing strategy where the organization sets a low price to increase sales and market share.
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Perceptual Map:
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Mapping a product/organization alongside all competitors in the hope to find a 'positioning gap' in the given market.
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Personal Selling:
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Selling a product or services one to one.
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Primary Data:
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The process of organizing and collecting data for an organization.
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Product Development Strategy:
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The development of a new product/service aimed at the organization’s existing market. The aim is to increase expenditure within the segment.
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Product Life Cycle:
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The life stage of a product, includes, introduction, growth, maturity and decline.
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Product Cannibalization:
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Loosing sales of a product to another similar product within the same product line.
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Public Relations:
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The process of building good relations with the organizations various stakeholders(consumers, channel markets, etc).
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Relationship Marketing:
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Creating a long-term relationship with existing customers. The aim is to build strong consumer loyalty.
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Sales Promotion:
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An incentive to encourage the sale of a product/service e.g. money off coupons, buy one, get one free.
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Secondary Data:
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Researching information which has already been published.
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Segmentation:
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The process of dividing a market into groups that display similar behavior and characteristics.
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Skimming Pricing:
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A pricing strategy where an organization sets an initial high price and then slowly lowers the price to make the product available to a wider market.
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SWOT Analysis:
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A model used to conduct a self appraisal of an organization. The model looks at internal strengths and weaknesses and external environmental opportunities and threats.
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Target Audience:
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A specific demographic audience that an organization’s marketing communications is aimed toward.
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Test Marketing:
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Testing a new product or service within a specific region before national launch.
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Usage Segmentation:
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Dividing a market segment into non, light, medium or heavy users.
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