A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

ABC1C2DE

National Readership Survey terms to define reading demographic groups ie: A = Upper middle class, higher managerial, administrative or professional.

ABC

Always Be Closing – an old term rarely used in sales training

Above the line

Advertising for which a payment is made and for which commission is paid to the advertising agency.
Also see ‘Below the line’ and ‘Push versus pull promotion’.

Account management

The process by which an agency or supplier manages the needs of a client.

Accredited programmes

Modular study that is assessed by exam or by project based assignments towards achieving a qualification.

Added value

The increase in worth of a product or service as a result of a particular activity – in the context of marketing, the activity might be packaging or branding.

Adopter categories

Five groups into which consumers can be placed according to the time it takes them to adopt a new product or service. The five categories are:

Advertising

Promotion of a product, service, or message by an identified sponsor using paid-for media.

Advertising Cost Equivalent (ACE)

See – AVE.

Advertising Space Equivalent (ASE)

See – AVE.

Advertising Value Equivalent (AVE)

A commonly used PR measurement of the value of the space secured by PR executives had they bought that equivalent amount of space in advertising.

Advertorial

An advertisement which is designed to have the appearance of an editorial. Advertorials are normally labelled as “Advertising” or “This is an advertisement”. Similar in practice to an infomercial.

Advocacy advertising

Advocacy advertising expresses a viewpoint on a given issue, often on behalf of an institution. Examples are to be found in anti-drink-driving campaigns.

Adware

Free software which includes pop-up banner advertisements which cannot be dismissed.
See ‘Banner adverts’ and ‘Pop-up’.

Affiliate marketing

A form of marketing or advertising used on the internet. Companies that sell products or services online link to relevant sites. The advertising on the other or ‘affiliate’ sites is paid for according to results.

Affinity marketing

Marketing targeted at individuals sharing common interests that predispose them towards a product, e.g. an auto accessories manufacturer targeting motoring magazine readers. Also, a campaign jointly sponsored by a number of disparate organisations that are non-competitive but have a particular interest in common.

After sales service

Services received after the original goods or service have been paid for.

AIDA

Attention, Interest, Desire, Action: a model describing the process that advertising or promotion is intended to initiate in the mind of a prospective customer.

AIUAPR

Awareness, Interest, Understanding, Attitudes, Purchase, Repeat purchase: a buying decision model.

Ambient media

Originally known as ‘fringe media’, ambient media are communications platforms that surround us in everyday life – from petrol pump advertising to advertising projected onto buildings to advertising on theatre tickets, cricket pitches or even pay slips.
Also see ’Buzz’.

Ambush marketing

A deliberate attempt by an organisation 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 broadcasts of the event.

Analytical Hierarchy Process (AHP)

A mathematical decision making technique that allows consideration of both qualitative and quantitative aspects of decisions. It reduces complex decisions to a series of one-on-one comparisons, then synthesises the results.

Ansoff matrix

Category management tool which relates market position to market strategy. It maps new versus existing products along one axis, and new versus existing markets along the other. Each quadrant of the matrix relates to a product-market strategy:

Asset led marketing

Asset led marketing uses product strengths such as the name and brand image to market both new and existing products. Marketing decisions are based on the needs of the consumer AND the assets of the product.

Assignments

An assessed work based project report. Assignments are part of the assessment procedure when studying for a qualification.

Astroturfing

The unethical or illegal practice of influencing or distorting word of mouth communication for commercial gain by posing as something or someone that you are not.

Avatar

An animated or graphic character, cartoon or picture used to represent an individual in a game, chat room or website.

B

B2E

Business to Employee.

Balanced scorecard

A technique allowing a company to monitor and manage performance against defined objectives. Measurements might typically cover financial performance, customer value, internal business process, innovation performance and employee performance.

Banner adverts

Adverts on web pages used to build brand awareness or drive traffic to the advertisers own website.

Behavioural targeting

An internet marketing term. Technology that targets users with advertisements based on previous browsing behaviour and patterns.

Below the line

Non-media advertising or promotion when no commission has been paid to the advertising agency. Includes direct mail, point of sale displays, giveaways.
Also see ‘Above the line’ and ‘Push versus pull promotion’.

Black space

The business opportunities that a company has formally targeted and organised itself to capture.

Blended e-learning

An integrated programme with a blend of interactive online tuition, face-to-face classroom workshops, assignments and a learning log.

Blogs/blogging

Blog is a contraction of Web log. An internet publishing device allowing an individual or company to express their thoughts and opinions. Businesses can use blogs as a marketing communication channel.

BNFNT

Buy Now Free Next Time. Promotional practice where on the purchase of one item another one is given free.

BOGOF

Buy One Get One Free. Promotional practice where on the purchase of one item another one is given free.

BOGOFL or BOGOF later

Buy One Get One Free Later. Promotional practice where on the purchase of one item the customer is entitled to another one for free at a later date.

Boston matrix

A product portfolio evaluation tool developed by the Boston Consulting Group. The matrix categorises products into one of four classifications based on market growth and market share. The four classifications are:

Brand

The set of physical attributes of a product or service, together with the beliefs and expectations surrounding it – a unique combination which the name or logo of the product or service should evoke in the mind of the audience.

Brand extension

Process by which a company develops new products to be marketed under an existing brand name.

Brand management

The process by which marketers attempt to optimise the ‘Marketing mix’ for a specific brand.

Brand mapping and brand maps

Mapping the relative position of competing brands based on perceptual mapping of consumer perceptions of the brands.
Also called perceptual maps, position maps and space maps.

Brand personality

Collection of attributes giving a brand a recognisable unique quality. May be the result of contrived marketing action or an accident of market perception.

Brand value

The value which a brand would be given if represented on a company balance sheet.

Brown goods

Electrical goods such as TVs, videos, stereo systems etc, used for home entertainment. So called because they were originally cased in bakelite, a brown plastic.

Business orientations

There are traditionally four approaches, or orientations, to doing business that an organisation can adopt. These are:

For definitions of these orientations see the entries for each one in this glossary.

Business plan

A strategic document showing cash flow, forecasts and direction of a company. See Resources / Templates

Business strategy

The means by which a business works towards achieving its stated aims. See Resources / Templates

Business to Business (B2B)

Relating to the sale of a product or service for any use other than personal consumption. The buyer may be a manufacturer, a reseller, a government body, a non-profit-making institution, or any organisation other than an ultimate consumer.

Sales of products or services to government or other public sector organisations may be excluded from B2B and instead be classified as B2G.
See ‘Business to Government’.

Business to Consumer (B2C)

Relating to the sale of products or services for personal consumption. The buyer may be an individual, family or other group, buying to use the product themselves, or for end use by another individual.

Business to Government(B2G)

Relating to the sale of a product or service to a government or other public sector organisation.
See ‘Business to Business’.

Buying behaviour

The process that buyers go through when deciding whether or not to purchase goods or services. Buying behaviour can be influenced by a variety of external factors and motivations, including marketing activity.

Buzz

Buzz marketing uses ‘word-of-mouth’ advertising: potential customers pass round information about a product.
See ‘Viral marketing’

C

CAPI

Computer-Assisted Personal Interviewing or Computer-Aided Personal Interviewing. Face-to-face interviews using computer-based questionnaires.

Cash cow

See ‘Boston matrix’.

Category management

Products are grouped and managed by strategic business unit categories. These are defined by how consumers views goods rather than by how they look to the seller, e.g. confectionery could be part of either a ‘food’ or ‘gifts’ category, and marketed depending on the category into which it is grouped.

CATI

Computer-Assisted Telephone Interviewing or Computer-Aided Telephone Interviewing. Telephone interviews using computer-based questionnaires.

Cause related marketing

Partnership between a company or brand and a charity or ’cause’ by which the ’cause’ benefits financially from the sale of specific products.

Channels

The methods used by a company to communicate and interact with its customers.

Click-through

The act of a user clicking on an internet advertisement that opens a link to the advertiser’s website.

Closed systems

A system can be defined as units or elements which interact with each other. A closed system is one which has little or no interaction with other systems or its external environment.

Cold calling

Telephoning or calling at the door of people or organisations who have not asked for information on, or expressed an interest in, your products or services. One of the toughest disciplines of sales and marketing

Cold mailing

Using a rented or compiled list to mail or email people or organisations who have not asked for information about your products or services.

Company specific training

Training programmes specially tailored to meet company requirements for groups of 6 or more people from the same company.

Comparative advertising

Advertising which compares a company’s product with that of competing brands. Must be used with caution to avoid accusations of misrepresentation from competitors.

Competitions

Sales promotions that allow the consumer the possibility of winning a prize.

Competitive advantage

The product, proposition or benefit that puts a company ahead of its competitors.

Competitors

Companies that sell products or services in the same market place as one another.

Concept boards

Visual and/or verbal stimulus presenting an idea for a product, service or advert.

Confusion marketing

Controversial strategy of deliberately confusing the customer. Examples are alleged to be found in the telecommunications market, where pricing plans can be so complicated that it becomes impossible to make direct comparisons between competing offers.

Consumer

Individual who buys and uses a product, solution or service.

Consumer behaviour

The buying habits and patterns of consumers in the acquisition and usage of goods and services.

Contextual marketing

An internet marketing term. In its simplest form contextual marketing shows a user adverts based on terms for which they have searched. More advanced applications pull adverts based on the content of a website being viewed, or on an individual’s browsing habits.

Conversion rate

Measure of conversion of inquiries or replies to an advertisement, or mailing shot, to sales.

Cookie

Small data file downloaded on to an end-user’s computer which allows a web site to identify the visitor. Cookies can be used to build profiles of repeat users of a website.

Copyright

The law that protects an author’s original material, usually (in the UK) for 70 years after the author’s death. Similar law covers logos and brand names.

Copywriting

Creative process by which written content is prepared for advertisements or marketing material.

Corporate identity

The character a company seeks to establish for itself in the mind of the public, reinforced by consistent use of logos, colours, typefaces and so on.
Also see ’Corporate reputation’.

Corporate reputation

A complex mix of characteristics, such as ethos, identity and image, that go to make up a company’s public personality. Corporate reputation hinges on investor confidence, unlike brand reputation which is contingent on customer confidence and reflected in sales.
Also see ’Corporate identity’.

Corporate Social Responsibility (CSR)

A commitment by business to behave in an ethical, social and environmentally responsible way, and to have a positive impact on the local and global environment.

Corporate strategy

The policies of a company with regard to its choice of businesses and customer groups.

Cost leadership

The strategy of producing goods at a lower cost than one’s competitors.

Cost Per Acquisition/Action (CPA)

Online advertising payment model in which payment is based solely on qualifying actions such as sales or registrations.

Cost Per Click (CPC)

A specific type of cost-per-action program where advertisers pay for each time a user clicks on an ad or link.

Cost Per thousand (CPT)

This is a standard measurement used for determining the cost effectiveness for a specific medium. It compares the cost of the advertisement to the number of impressions to your target audience.

CPA

See ‘Cost Per Action’.

CPC

See ‘Cost Per Click’.

CPL

Cost Per Lead.

CPM

Cost Per Mille. Another version of cost per thousand, mille being Latin for thousand.

CPS

Cost Per Sale.

Cross Cutural Consumer Characterisation (4C’s)

A consumer segmentation model, devised by Young and Rubicam, that defines people by their core motivation. The model is based on Maslow’s hierarchy of needs and divides people into 7 types:

Culture

The philosophy of a company, reflected in aims such as the maximisation of customer satisfaction.

Customer

A person or company who purchases goods or services (not necessarily the end consumer).

Customer Lifetime Value (CLV)

The profitability of customers during the lifetime of the relationship, as opposed to profitability on one transaction.

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 orientation

Another term for marketing orientation.
See ‘Marketing orientation’.

Customer Relationship Management (CRM)

The coherent management of contacts and interactions with customers.

This term is often used as if it related purely to the use of IT, but IT should in fact be regarded as a facilitator of CRM.

Customer satisfaction

The provision of goods or services which fulfil the customer’s expectations in terms of quality and service, in relation to price paid.

Customer service programme

Strategy for assuring customers a positive buying experience in order to improve customer loyalty, increase cross-selling and promote advertising by word-of-mouth.
Also see ’Customer satisfaction’.

Cyber-stealth marketing

Covert attempts using the internet to boost brand image, to make websites appear more popular than they are or to manipulate search engine listings.

D

DAGMAR

Defining Advertising Goals for Measured Advertising Response – a model for planning advertising in such a way that its success can be quantitatively monitored.

Data cleansing

Correcting or removing old, corrupt or inaccurate data.

Data fusion

Combining information from different sources to obtain information of greater quality for the end user.

Data mining

The use of powerful software to analyse data to identify patterns or relationships in that data.

Data processing

The obtaining, recording and holding of information which can then be retrieved, used, disseminated or erased. The term tends to be used in connection with computer systems, and today is often used interchangeably with ‘Information Technology’.

Data Protection Act

A law which makes organisations responsible for protecting the privacy of personal data. The current act (Data Protection Act 1998) is the United Kingdom’s response to the requirement to implement National legislation in accordance with the European Directive 95/46/EC.

Database marketing

Whereby customer information, stored in an electronic database, is utilised for targeting marketing activities. Information can be a mixture of what is gleaned from previous interactions with the customer and what is available from outside sources.
Also see ’Customer Relationship Management (CRM)’.

Deal and Kennedy’s four types of corporate culture

Deal and Kennedy’s four types of corporate culture
The Deal and Kennedy model of corporate cultures defines four types of organisation based on how quickly feedback and rewards are received and the levels of risk taken. The four types are:

Decision Making Unit (DMU)

The group of people in an organisation who make the buying decision.

Deep linking

Hyperlinking to a page, file or image on a website that bypasses that website’s homepage.

Demand and supply

Demand is the desire for a product at the market price.
Supply is the quantity available at that price.

Demographic data

Information describing and segmenting a population in terms of age, sex, income and so on, which can be used to target marketing campaigns.

Differentiation

Ensuring that products and services have a unique element to allow them to stand out from the rest.

Direct mail

Delivery of an advertising or promotional message to customers or potential customers by mail.

Direct marketing

All activities which make it possible to offer goods or services or to transmit other messages to a segment of the population by post, telephone, e-mail or other direct means.

Direct Response Advertising (DRA)

Advertising incorporating a contact method such as a phone number, address and enquiry form, web site identifier or e-mail address, with the intention of encouraging the recipient to respond directly to the advertiser by requesting more information, placing an order and so on.

Discounted Cash Flow (DCF)

A method of estimating an investment’s current value based on the discounting of projected future revenues and costs. The further into the future the flow occurs, the more heavily it will be discounted.

Displacement marketing

The practice of a brand marketing a product to draw attention to another product with the same brand name, usually because the second product is banned from being advertised. An example would be a brewer marketing a non-alcoholic drink with the same brand name and logo as an alcoholic drink in order to draw attention to the alcoholic product.

Distribution

The process of getting the goods from the manufacturer or supplier to the user.

Diversification

An increase in the variety of goods and services produced by an individual enterprise or conglomerate. It may be encouraged, either by business owners or by governments, in order to reduce the risk of relying on a narrow range of products.

DoDo

A product with a low market share of a declining market.

Dog

See ‘Boston matrix’.

DRIP framework

Differentiate – Reinforce – Inform – Persuade.
A marketing communications model.

E

Early adopters

See ‘Adopter categories’.

Early majority

See ‘Adopter categories’.

E-commerce

Any business transaction that takes place via electronic platforms.

Efficient Consumer Response (ECR)

Having the right product in the right place at the right price with the right promotions.
How products look to the customer is seen as an integral part of achieving ECR.

E-learning

Interactive online tutorials, accessed via the internet or a company intranet.

E-marketing

Marketing using electronic media such as the internet, mobile phones or email.

Emotional Selling Preposition (ESP)

The unique associations established by consumers with particular products. For example, the emotional response to certain car marques ensures their continual success, even though other makers may offer superior performance at the same price.

Emotional Selling Proposition (ESP)

An emotional or psychological characteristic of a brand which makes it more desirable to the consumer. Based on the assumption that many buying decisions are not made on a purely rational basis, a brand with an ESP will have more appeal to a consumer than if it just relied on a rational selling proposition.

Endorsement

Affirmation, usually from a celebrity, that a product is good.

Entrepreneur

Someone who sees an opportunity and risks their own money to set up a business in order to respond to it.

Environmental scanning

Monitoring of an organisation’s external environment, allowing the organisation to spot or anticipate emerging issues. This provides an early warning of changing external conditions.

Environmental set

Comprehensive list of factors which affect an organisation.

Ethical marketing

Marketing that takes account of the moral aspects of decisions.

Experience curve

The plotted relationship between the amount of products produced and the cost per unit over time from launch. As more units are produced, the cost per unit usually declines, an effect that is partially attributable to the accumulation of experience.

External analysis

Study of the external marketing environment, including factors such as customers, competition, and social change.

F

FAST marketing

Focused Advertising Sampling Technique: an approach concentrating promotions into a short space of time to saturate the market.

Fax Preference Service (FPS)

A database of business and individual telecoms subscribers who have elected not to receive unsolicited direct marketing faxes.

Five M’s of management

An expansion of the four M’s of management framework with the addition of time – Money, Material, Machine, Manpower and Minutes (Time).

FMCG

Fast Moving Consumer Goods – such as packaged food, beverages, toiletries, and tobacco.

Focus groups

A tool for market research where small groups of customers are invited to participate in guided discussions on the topic being researched.

Forecasting

Calculation of future events and performance.

Four C’s

See ‘Cross Cutural Consumer Characterisation’.

Four M’s of management

Money, Material, Machine and Manpower - traditional framework for viewing the resources available to a business, which can be useful when designing a marketing plan.
Also see ‘Five M’s of management’.

Four P’s

Product, Price, Place, Promotion.

Franchising

The selling of a licence 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.

Full service agency

Advertising agency offering clients a wide range of activities and expertise over and above the normal creative and/or media facilities. Such services will include marketing research and planning, merchandising and below-the-line sales promotions, press and/or public relations, packaging, etc.

G

Geodemographics

A method of analysis combining geographic and demographic variables.
For an example see ‘ACORN’.

Grey marketing (also called parallel importing)

The illicit sale of imported products contrary to the interests of a holder of a trademark, patent or copyright in the country of sale.

Gross Domestic Product (GDP)

Total output of goods and services by the national economy in a full year.

Guarantees and warranties

Legal documents committing a company to deal with faulty goods or services by a variety of methods including repair, replacement or compensation.

Guerrilla marketing

The strategy of targeting small and specialised customer groups in such a way that bigger companies will not find it worthwhile to retaliate.


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