The Marketing Dictionary: Important Business Marketing Terms
1. Account planning is the process of gathering information about the consumer’s attitude toward the product by using focus groups, social networking, ethnographies and other quantitative techniques to plan an advertising campaign and track its effectiveness.
2. Affiliate marketing is a performance-based marketing technique in which affiliates are rewarded for making sales or bringing in new customers.
3. Affinity marketing relies on the close cooperation of two brands, for example, the partnership of credit card companies with professional sports teams to provide branded credit cards.
4. Aggressiveness strategy – of the four categories of aggressiveness strategy, prospective, defensive, analytical and reactive, it is prospective strategy that is, well, the most aggressive. This approach embraces assertive marketing, high risk tolerance, product innovation, financial leverage and fast decisions.
5. Agricultural marketing is the process of moving an agricultural product from the farm to the consumer, from production planning, growing, harvesting, transport, distribution, advertising and sale.
6. Alliance marketing is a strategy that involves competitors joining forces and pooling resources for the benefit of all participants. An example is Star Alliance, a large collection of commercial passenger airlines that enable passengers to use loyalty miles accrued on one member of the alliance on a flight with another carrier.
7. Ambush marketing refers to an advertiser capitalizing on an event without paying a sponsorship fee. This practice is frowned on because it dilutes the value of sponsorship that has been paid for. The Olympics committee for London 2012 was fiercely pre-emptive of anyone trying to jump on their bandwagon and the use of anything remotely connected with either the name of the event or its logo were strictly prohibited.
8. Article marketing goes way, way back to pre-Internet days when companies would submit a timely article to a mass print medium; for example, a florist would submit an article about choosing the right flowers for Mother’s Day.
9. Article video marketing is similar to article marketing except that short, two- to five-minute videos are uploaded onto video sharing websites on the Internet.
10. Association of Publishing Agencies (APA) – Based in London, the APA provides services to contract publishers with the aim of boosting sales, brand recognition and customer loyalty.
11. Brand language is more than just words, it is the entire package of verbal and visual cues that define your brand and convey the right tone of voice.
12. A Business model describes the methods used by an organization to create and deliver value to the customer. For example, franchising is a business model.
13. Business model design is, unsurprisingly, the process of designing a company’s business model.
14. Call to Action (marketing) refers to a graphic or prominent text on a website that entices the visitor to ‘do something,’ i.e., make a purchase, subscribe to a newsletter, download a freebie, etc.
15. CHAOTICS is a strategic business framework for survival during times of economic turbulence such as what the world is experiencing at this very moment.
16. Cause marketing describes a cooperative venture between a for-profit business and a not-for-profit organization such as a charity. Example: The Star Tavern, an award-winning pub in London, sponsors an annual run for charity.
17. The Cellar (marketing) refers specifically to the gourmet kitchenware department in Macy’s department stores located on the first floor below ground level.
18. Close range marketing is a scary application of Bluetooth technology applicable to retailers who place a black box near the entrance to their premises and ping a message to unsuspecting customers who happen to have Bluetooth activated on their mobile phone.
19. Community Marketing focuses on the needs of existing customers to foster loyalty and generate new customers.
20. Consumer-generated advertising refers to sponsored advertising on customer-generated media such as blogs, wikis, social networking sites, forums and individual web sites.
21. Content marketing stops short of actually selling but finds a different way to engage the customer; free e-book downloads are a modern example.
22. Cross-media marketing - muti-channel marketing strategy
23. Consumer advocacy is when companies focus on the customer. Aren’t they all supposed to do that?
24. Customerization is a form of consumer advocacy wherein the company has a 1 to 1 relationship with the customer and can respond to their individual needs.
25. Database marketing – A form of Direct marketing that relies on the use of a customer database used to generate personal communications.
26. Defensive marketing warfare strategies are used by market leaders to retain their position. They may involve identifying their own weaknesses and reinventing itself.
27. Digital marketing relies on the use of devices such as mobile phones, tablets, games consoles, digital billboards, etc.
28. A Digital Omnivore is a consumer who employs multiple devices at the same time, i.e., smartphones, tablets, laptops, etc. Offers the advertiser multiple media to get its message across.
29. Direct marketing allows the marketer to contact the customer directly through email, text messaging, etc.
30. Diversification is the practice of increasing sales through introducing new products.
31. Diversity marketing creates customized strategies tailored to the differing tastes, beliefs, expectations, entertainment choices, means of interacting, values and lifestyle differences of different cultural and demographic groups within the market.
32. Ethical marketing – the aim of ethical marketing is to create a culturally sensitive and socially responsible business community by considering such morally-charged issues such as child labor, environmental impact, working conditions and fair trading.
33. Evangelical marketing is essentially word-of-mouth advertising achieved by igniting a passion in customers so that they become voluntary advocates for the company or its products.
34. Experience curve effects are a quantitative measure of a company’s competitive advantage as a result of gaining experience in the marketplace. Gains in advantage may come by time spent in the market, hiring experienced staff or by collaborating with other organizations.
35. Figure of merit is a method of quantifying the performance of a product or service compared with its alternatives.
36. Flanking marketing warfare strategies borrow a military metaphor to craft a business strategy with the aim of avoiding confrontational losses. Techniques used include avoiding confrontation by moving into an uncontested area of the market (flanking), moving swiftly and using tactics unlikely to cause alarm in the competition.
37. Freebie marketing is also described as the “razor and blades model” and refers to the practice of giving one product away or selling it at a low price in order to increase the sales of a complementary product. Give the mobile phone away free and make money on the contract.
38. Global marketing is what it sounds like; marketing on a worldwide scale as opposed to domestic.
39. Guerrilla marketing is an unconventional method of advertising that relies on imagination, time and energy to promote a product. Examples are using sticker bombing, flash mobs and graffiti.
40. Guerrilla marketing warfare strategies are military strategies adapted to form an advertising and marketing campaign. Such tactics are used covertly by companies to stay ahead of the competition. When Reebok put branded stickers on cricket bats, it diluted the effect of Nike’s attempt to sponsor Indian cricket. Read the “Art of War” by Sun Tzu.
41. Horizontal integration refers to merging or taking over a similar company to create a monopoly. A monopoly thus created is called a horizontal monopoly.
42. Inbound marketing refers to activities designed to attract traffic to a company’s website, convert visitors into leads, convert leads into sales, turn sales into high-volume repeat sales and analyse results to improve on ROI. Inbound marketing includes blogs, videos, eBooks, podcasts, white papers and other methods of content marketing.
43. Influencer marketing – targets influential individuals within a target market. Pharmaceutical companies, for example, identify and recruit key opinion leaders (KLOs) to participate in all phases of clinical trials.
44. Integrated marketing communications is a means of optimizing the cost-effectiveness of all modes of brand communications such as advertising, personal selling, direct marketing, social media, public relations, etc.
45. Limited edition candy is specially packaged and sold for a finite period of roughly eight to twelve weeks. Pioneered as a marketing strategy in 2003.
46. Loyalty marketing includes tactics such as air miles and loyalty cards. After so many purchases the customer gets something for free or at a very low price.
47. Marketing communications encompasses all the media used to market a product and includes things like advertising, graphic design, publicity, packaging, etc.
48. Marketing warfare strategies. Okay, somebody in the marketing department has been reading Sun Tzu and passing it around the office.
49. Mass customization is the flexible use of computer-aided manufacturing systems to produce customized products in a large scale. Think 3D printers. Trekkie, rejoice – we are getting ever closer to replicators.
50. Megamarketing techniques are used to manage elements of the firm’s external environment (governments, pressure groups, the media). Think lobbyist.
51. Menu engineering applies to the strategic design of restaurant menus or any other structured product listing.
52. Multi-domestic strategy is the customization of product and marketing strategy to fit in with target markets in different countries. Selling potato chips in the USA is different from selling crisps in the UK.
53. Multi-level marketing rewards both the sales force and their downline colleagues, people whom they have recruited to help sell product and form their own pyramids.
54. Nano-campaigning is a subset of Marketing Communications in which sharply focused tactics in preparation for a more extensive strategic campaign; facilitated immensely by the growing use of social media.
55. Next best-action marketing is a consumer-centric approach that balances the customer’s needs on the one hand with the company’s marketing regulations and policies to determine the best approach to entice a particular customer. Compare with product-centric marketing, which designs a product and then create a market.
56. Offensive marketing warfare strategies are a military metaphor for stealing customers from the competitors. BTW, Sun Tzu’s “Art of War” is readily available on the Internet, free of charge.
57. Online advertising is simply the promotion and marketing of products and services over the Internet. It’s the wave of the future; way too big a genie to put back into the bottle now.
58. Permission marketing is the process of obtaining the prospective customer’s consent before actually trying to send them something. Techniques include getting them to sign up for a newsletter, etc.
59. Personalization, an increasing feature in marketing in the health and education sectors, is the use of personalized data to provide sharply-focused advertising.
60. Pitch books contain the main attributes of an investment bank and used to secure deals with major customers. It is kind of like an annual report and a company brochure bound and presented as a single marketing instrument.
61. Pre-installed software refers to the programs and operating system already installed on a computer prior to purchase. Click and play for grown-ups.
62. Product bundling is the practice of offering several products for sale as one package, a very common technique in the software, fast food and cable television industries.
63. Project SCUM, or subculture urban marketing, was introduced in San Francisco in the 1990s as part of a plan by RJR Tobacco Company. Due to the potentially offensive nature of the acronym, the project was renamed, Project Sourdough.
64. Proximity marketing is essentially the same as close range marketing in terms of hardware and intrusiveness.
65. Reality marketing is a type of permission marketing and blends interactive advertising methods into a reality TV show type of format.
66. With relationship marketing, the emphasis is on customer satisfaction rather than obsessing over the order book.
67. Revenue technology services was formerly Control Data Corporation, RTS provides software for revenue management and profit optimization.
68. Scenario planning is another marketing strategy that borrows from military intelligence, although perhaps not so reliant on Sun Tzu.
69. Secret brand refers to luxury goods that are not overtly advertised or even labeled and relies on scarcity value, branding and experimentation. Muji is an example.
70. Seeding trials are wolves in sheep’s clothing. Packaged as clinical trials, they are a sneaky way of introducing drugs or medical devices to clinicians. Beta-testing versions of software is also a form of seeding trial.
71. Share of voice ads capitalize on exclusivity by limiting the number of advertisers on a website and giving them equal weight. This benefits both the advertiser and the web publisher, not to mention the customer, who benefits from not being exposed to ad noise.
72. Shopper marketing makes a distinction between the shopper and the consumer of a retail product. Think pet food.
73. To understand Social pull marketing think in terms of people friending you on Facebook rather than you looking for people to friend.
74. Special editions are a marketing incentive for all sorts of products from luxury cars to jars of gooey yeast spread favored in the United Kingdom.
75. Strategy dynamics. There are two ways of looking at this. One is from the point of view of performance, which relates to the content of strategy, i.e, choices, policies, initiatives and decisions adopted for the purpose of improving performance. The other is process, an understanding of the dynamics of how strategy unfolds.
76. Undercover marketing refers to “buzz marketing,” a guerrilla marketing technique whereby consumers are unaware that they are the objects of a marketing campaign.
77. Vertical disintegration is an economic structure in which a production process is broken down into separate companies.
78. Vertical integration is a style of management control through which the different companies in a supply chain are united, or integrated, through a common owner.
79. Yield management refers to the anticipation, understanding and manipulation of consumer behavior to maximize returns from a finite, perishable product. Basically, it means getting bums on seats, whether they are on an aircraft or in a theater.
80. Z-CARD is the registered trademark for a folding travel guide developed by the travel writer, George McDonald.
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