Ladder of Loyalty
A marketing communications tool that aims to move a consumer along a path from a prospect (“not yet purchased”) to advocate (“brand insistence”) through customer (“trialist”) and client (“repeat purchases”) by using integrated marketing communications techniques. As a consumer travels up the ladder they become increasingly loyal to the brand. Also called the ‘Branding Ladder’.
Laggards
See ‘Adopter Categories’.
Late Majority
See ‘Adopter Categories’.
Learning Log
An assignment that charts a personal development plan and achievements of a delegate during a period of study.
Lifestyle
Way of living, in the broadest sense, of a society or segment of that society. Includes both work and leisure, eating, drinking, dress, patterns of behaviour and allocation of income.
Logo
A graphic, usually consisting of a symbol and/or group of letters, that identifies a company or brand.
LTV
Long Term Value.
Wednesday, March 24, 2010
MARKETING GLLOSSARY (M)
Macro Environment
The external factors which affect a company's planning and performance, and are beyond its control: forexample, socio-economic, legal and technological change. Compare 'micro environment'
Mailing Preference Service (MPS)
A database of individual home addresses where the occupiers have elected not to receive unsolicited direct (marketing) mail.
Market Challenger
A firm attempting to gain market leadership through marketing efforts - see also 'market follower' and 'market leader'
Market Development
The process of growing sales by offering existing products (or new versions of them) to new customer groups (as opposed to simply attempting to increase the company's share of current markets).
Market Entry
The launch of a new product into a new or existing market. A different strategy is required depending on whether the product is an early or late entrant to the market; the first entrant usually has an automatic advantage, while later entrants need to demonstrate that their products are better, cheaper and so on.
Market Follower
A firm that is happy to follow the leaders in a market place without challenging them, perhaps taking advantages of opportunities created by leaders without the need for much marketing investment of its own - see also 'market challenger' and 'market leader'
Market Leader Seller of the product or service with the largest market share in its field - see also 'market challenger' and 'market follower'
Market Penetration
The attempt to grow one's business by obtaining a larger market share in an existing market - see 'market share' and 'market development'
Market Research (or Marketing Research)
The gathering and analysis of data relating to market places or customers; any research which leads to more market knowledge and better-informed decision-making.
Market Segmentation The division of the market place into distinct subgroups or segments, each characterised by particular tastes and requiring a specific marketing mix. See also 'marketing mix'.
Market Share
A company's sales of a given product or set of products to a given set of customers, expressed as a percentage of total sales of all such products to such customers.
Market Value Added (MVA)
Market Value Added (MVA) is the difference between the equity market valuation of a listed/quoted company and the sum of the adjusted book value of debt and equity invested in the company.
Marketing
Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. CIM's official definition.
Marketing Acronyms
Usually, abbreviations such as YUPPIE, BUPPIE, and GLAM. See individual acronyms for a description.
Marketing Audit
Scrutiny of an organisation's existing marketing system to ascertain its strengths and weaknesses.
Marketing Communications
All methods used by a firm to communicate with its customers and prospective customers.
Marketing Decision Support System (MDSS)
Tools for the collection and analysis of data to aid the marketing decision making process.
Marketing Information
Any information used or required to support marketing decisions - often drawn from a computerised
'Marketing Information System'.
Marketing Metrics Measurements that help with the quantification of marketing performance, such as market share, advertising spend, and response rates elicited by advertising and direct marketing.
Marketing Mix
The combination of marketing inputs that affect customer motivation and behaviour. These inputs traditionally encompass four controllable variables 'the 4 Ps': product, price, promotion and place. The list has subsequently been extended to 7 Ps, the additions being people, process and 'physical evidence'.
Marketing Myopia
Lack of vision on the part of companies, particularly in failing to spot customers' desires through excessive product focus. Term derives from the title of a seminal article by Theodore Levitt published in Harvard Business Review in 1960.
Marketing Orientation
A business strategy whereby customers' needs and wants, as identified by the marketing function, determine corporate direction.
Marketing Plan
A written plan, usually in-depth, describing all activities involved in achieving a particular marketing objective, and their relationship to one another in both time and importance.
Marketing Planning. The selection and scheduling of activities to support the company's chosen marketing strategy or goals. See also 'marketing strategy'.
Marketing Research
See 'market research' Marketing Return on Investment (MROI)
See Return on Marketing Investment (ROMI).
Marketing Strategy
The set of objectives which an organisation allocates to its marketing function in order to support the overall corporate strategy, together with the broad methods chosen to achieve these objectives.
McKinsey Seven S's of Management (or 7-S Model)
A framework for considering business strategy with reference to seven interrelated, aspects of the organisation: Systems, Structure, Skills, Style, Staff, Strategy, and Shared values.
M-Commerce (Mobile Commerce)
E-Commerce transactions using mobile or wireless devices.
See ‘E-Commerce’.
MDSS
Marketing Decision Support System.
Measurement
See 'marketing metrics'
Media Neutral Planning
A customer focussed review of media options during communications planning based on research, analysis and insight, not habit and preference
Merger/Acquisition
Merger: the formation of one company from two existing companies Acquisition: one company acquiring control of another by purchase of a majority shareholding.
Micro Environment
The immediate context of a company's operations, including such elements as suppliers, customers and competitors - compare 'macro environment'
Mission Statement
A company's summary of its business philosophy and direction
MMS
Multimedia Message Service. Text, audio, graphic and video messages sent by mobile phones, or other compatible devices, over a wireless network.
Models (or Marketing Models)
Graphical representations of a process designed to aid in understanding and/or forecasting. Computerised models allow the simulation of scenarios based on different assumptions about changes to the macro environment and micro environment. See also 'macro environment' and 'micro environment'.
Modular Training
A training programme that is studied over a period of time, delivered in modules that are linked together.
Mood Board
A visual illustration tool used either to represent the atmosphere or feel of an intended advertisement, or to research a consumer’s experience of a brand or product.
MOSAIC
Geodemographic segmentation model classifying neighbourhoods into 10 lifestyle types ie: Elite Suburbs;Average Areas; Luxury Flats.
Mystery Shopping
Employing individuals to anonymously visit or contact retailers or service providers in order to evaluate customer service, display quality, prices, etc.
The external factors which affect a company's planning and performance, and are beyond its control: forexample, socio-economic, legal and technological change. Compare 'micro environment'
Mailing Preference Service (MPS)
A database of individual home addresses where the occupiers have elected not to receive unsolicited direct (marketing) mail.
Market Challenger
A firm attempting to gain market leadership through marketing efforts - see also 'market follower' and 'market leader'
Market Development
The process of growing sales by offering existing products (or new versions of them) to new customer groups (as opposed to simply attempting to increase the company's share of current markets).
Market Entry
The launch of a new product into a new or existing market. A different strategy is required depending on whether the product is an early or late entrant to the market; the first entrant usually has an automatic advantage, while later entrants need to demonstrate that their products are better, cheaper and so on.
Market Follower
A firm that is happy to follow the leaders in a market place without challenging them, perhaps taking advantages of opportunities created by leaders without the need for much marketing investment of its own - see also 'market challenger' and 'market leader'
Market Leader Seller of the product or service with the largest market share in its field - see also 'market challenger' and 'market follower'
Market Penetration
The attempt to grow one's business by obtaining a larger market share in an existing market - see 'market share' and 'market development'
Market Research (or Marketing Research)
The gathering and analysis of data relating to market places or customers; any research which leads to more market knowledge and better-informed decision-making.
Market Segmentation The division of the market place into distinct subgroups or segments, each characterised by particular tastes and requiring a specific marketing mix. See also 'marketing mix'.
Market Share
A company's sales of a given product or set of products to a given set of customers, expressed as a percentage of total sales of all such products to such customers.
Market Value Added (MVA)
Market Value Added (MVA) is the difference between the equity market valuation of a listed/quoted company and the sum of the adjusted book value of debt and equity invested in the company.
Marketing
Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. CIM's official definition.
Marketing Acronyms
Usually, abbreviations such as YUPPIE, BUPPIE, and GLAM. See individual acronyms for a description.
Marketing Audit
Scrutiny of an organisation's existing marketing system to ascertain its strengths and weaknesses.
Marketing Communications
All methods used by a firm to communicate with its customers and prospective customers.
Marketing Decision Support System (MDSS)
Tools for the collection and analysis of data to aid the marketing decision making process.
Marketing Information
Any information used or required to support marketing decisions - often drawn from a computerised
'Marketing Information System'.
Marketing Metrics Measurements that help with the quantification of marketing performance, such as market share, advertising spend, and response rates elicited by advertising and direct marketing.
Marketing Mix
The combination of marketing inputs that affect customer motivation and behaviour. These inputs traditionally encompass four controllable variables 'the 4 Ps': product, price, promotion and place. The list has subsequently been extended to 7 Ps, the additions being people, process and 'physical evidence'.
Marketing Myopia
Lack of vision on the part of companies, particularly in failing to spot customers' desires through excessive product focus. Term derives from the title of a seminal article by Theodore Levitt published in Harvard Business Review in 1960.
Marketing Orientation
A business strategy whereby customers' needs and wants, as identified by the marketing function, determine corporate direction.
Marketing Plan
A written plan, usually in-depth, describing all activities involved in achieving a particular marketing objective, and their relationship to one another in both time and importance.
Marketing Planning. The selection and scheduling of activities to support the company's chosen marketing strategy or goals. See also 'marketing strategy'.
Marketing Research
See 'market research' Marketing Return on Investment (MROI)
See Return on Marketing Investment (ROMI).
Marketing Strategy
The set of objectives which an organisation allocates to its marketing function in order to support the overall corporate strategy, together with the broad methods chosen to achieve these objectives.
McKinsey Seven S's of Management (or 7-S Model)
A framework for considering business strategy with reference to seven interrelated, aspects of the organisation: Systems, Structure, Skills, Style, Staff, Strategy, and Shared values.
M-Commerce (Mobile Commerce)
E-Commerce transactions using mobile or wireless devices.
See ‘E-Commerce’.
MDSS
Marketing Decision Support System.
Measurement
See 'marketing metrics'
Media Neutral Planning
A customer focussed review of media options during communications planning based on research, analysis and insight, not habit and preference
Merger/Acquisition
Merger: the formation of one company from two existing companies Acquisition: one company acquiring control of another by purchase of a majority shareholding.
Micro Environment
The immediate context of a company's operations, including such elements as suppliers, customers and competitors - compare 'macro environment'
Mission Statement
A company's summary of its business philosophy and direction
MMS
Multimedia Message Service. Text, audio, graphic and video messages sent by mobile phones, or other compatible devices, over a wireless network.
Models (or Marketing Models)
Graphical representations of a process designed to aid in understanding and/or forecasting. Computerised models allow the simulation of scenarios based on different assumptions about changes to the macro environment and micro environment. See also 'macro environment' and 'micro environment'.
Modular Training
A training programme that is studied over a period of time, delivered in modules that are linked together.
Mood Board
A visual illustration tool used either to represent the atmosphere or feel of an intended advertisement, or to research a consumer’s experience of a brand or product.
MOSAIC
Geodemographic segmentation model classifying neighbourhoods into 10 lifestyle types ie: Elite Suburbs;Average Areas; Luxury Flats.
Mystery Shopping
Employing individuals to anonymously visit or contact retailers or service providers in order to evaluate customer service, display quality, prices, etc.
MARKETING GLLOSSARY (N)
National Change of Address (NCOA)
Database that helps locate forwarding addresses.
National Readership Survey (NRS)
A commercial organisation which provides estimates of the number and nature of the people reading UK newspapers and consumer magazines.
Net promoter score (NPS)
Percentage of promoters minus percentage of detractors.
Neuromarketing
Technique to quantify how consumers will respond to brands and advertising. The brain is mapped, usingfunctional Magnetic Resonance Imaging (fMRI), to record conscious and subconscious responses to advertising, products or brands.
New Product Development (NPD)
The creation of new products, from evaluation of proposals through to launch.
Niche Marketing
The marketing of a product to a small and well-defined segment of the market place.
NILKIE
No Income, Lots of Kids - a demographic grouping.
Database that helps locate forwarding addresses.
National Readership Survey (NRS)
A commercial organisation which provides estimates of the number and nature of the people reading UK newspapers and consumer magazines.
Net promoter score (NPS)
Percentage of promoters minus percentage of detractors.
Neuromarketing
Technique to quantify how consumers will respond to brands and advertising. The brain is mapped, usingfunctional Magnetic Resonance Imaging (fMRI), to record conscious and subconscious responses to advertising, products or brands.
New Product Development (NPD)
The creation of new products, from evaluation of proposals through to launch.
Niche Marketing
The marketing of a product to a small and well-defined segment of the market place.
NILKIE
No Income, Lots of Kids - a demographic grouping.
MARKETING GLLOSSARY (O)
Objectives
A company's defined and measurable aims for a given period.
Offensive Marketing
A competitive marketing strategy, the purpose of which is to win market share away from other players in the market.
OINK
One income, no kids - a demographic grouping.
Omnibus Survey
Continuous survey that is used to cover a number of topics at the same time. Companies offering this facility invite sponsors to commission a limited number of questions that would not alone justify setting up a separate research study.
One to One Marketing (1:1 Marketing)
Marketing that either treats each customer as an individual rather than as part of a broad segment, or that aims to establish a personal relationship with the customer.
Online Learning Course material accessed via the internet or a company intranet.
OPAL
Older People with Active Lifestyles - a demographic grouping.
Open Systems
A system can be defined as units or elements which interact with each other. An open system interacts with other systems or with its external environment.
ORCHID
One recent child, heavily in debt – a demographic grouping.
Organic Growth/Development
A company's expansion by the growth of its activities and ploughing back of profits, rather than bymergers/acquisitions. See 'mergers/acquisitions'
OTH
Opportunities To Hear.
OTR
Opportunities To Read.
OTS
Opportunities To See.
A company's defined and measurable aims for a given period.
Offensive Marketing
A competitive marketing strategy, the purpose of which is to win market share away from other players in the market.
OINK
One income, no kids - a demographic grouping.
Omnibus Survey
Continuous survey that is used to cover a number of topics at the same time. Companies offering this facility invite sponsors to commission a limited number of questions that would not alone justify setting up a separate research study.
One to One Marketing (1:1 Marketing)
Marketing that either treats each customer as an individual rather than as part of a broad segment, or that aims to establish a personal relationship with the customer.
Online Learning Course material accessed via the internet or a company intranet.
OPAL
Older People with Active Lifestyles - a demographic grouping.
Open Systems
A system can be defined as units or elements which interact with each other. An open system interacts with other systems or with its external environment.
ORCHID
One recent child, heavily in debt – a demographic grouping.
Organic Growth/Development
A company's expansion by the growth of its activities and ploughing back of profits, rather than bymergers/acquisitions. See 'mergers/acquisitions'
OTH
Opportunities To Hear.
OTR
Opportunities To Read.
OTS
Opportunities To See.
MARKETING GLLOSSARY (P)
Packaging
Material used to protect goods; also an opportunity to present the brand and logo.
PANSES
Politically Active and Not Seeking Employment - a demographic grouping
Parallel Importing
See 'grey marketing'
Pareto Principle
Also called the 80/20 rule. The principle that about 80% of the outcomes will come from about 20% of your effort.
Payment By Results (PBR)
Remuneration of an employee or service provider according to productivity or other measure of performance
Peer to Peer (P2P) Marketing
Technique of encouraging customers to promote your product to one another, particularly on the Internet. An example might be a web site that offers users a discount on products in return for recruiting new customers for the site. See also 'word of mouth'; 'viral marketing'.
PEEST
Political, Economic, Environmental, Socio-cultural and Technological - a framework for viewing the macro environment. See 'macro-environment'.
Penetration Pricing
Adoption of a lower price strategy in order to secure rapid wide penetration of a market.
Perceptual Mapping
Process of representing consumer perceptions of brands in relationship to each other. Consumers’ perceptions of brands are measured against certain criteria, ie value, customer service, innovation and quality. See ‘Brand Mapping and Brand Maps’.
Perfect Competition
An open market situation where free trade prevails without restriction, where all goods of a particular nature are homogeneous and where all relevant information is known to both buyers and sellers.
Performance Prism
A performance measurement and management framework. It addresses all of an organisation’s stakeholders - principally investors, customers, intermediaries, employees, suppliers, regulators and communities.
Personal Data
Data related to a living individual who can be identified from the information; includes any expression of
opinion about the individual.
Personal Selling
One-to-one communication between seller and prospective purchaser
PEST
Political, Economic, Socio-cultural and Technological - a framework for viewing the macro environment.
See also 'macro-environment'
Pester Power
The influence children have over purchases by adults: an influence which, controversially, advertisers may seek to stimu late.
PESTLE
Political, Economic, Socio-cultural, Technological, Legal and Environmental - a framework for viewing the macro environment. See 'macro-environment'.
Pharming
Redirecting traffic from a website, such as a bank, to a bogus website designed to mimic the original website in order to steal a user’s login details and other personal information.
See ‘Phishing’.
Phishing
Sending legitimate-looking emails, often giving the impression that they are sent from a trusted source, such as a bank, asking for personal information that can be used for identity theft. See ‘Pharming’.
Physical Evidence
The elements of 'marketing mix' which customers can actually see or experience when they use a service, and which contribute to the perceived quality of the service, e.g. the physical evidence of a retail bank could include the state of the branch premises, as well as the delivery of the banking service itself.
PIMS
Profit Impact of Marketing Strategies: a US database supplying data such as environment, strategy, competition and internal data with respect to 3000 business. This data can be used for benchmarking purposes.
Podcast/Podcasting
Term used to define the broadcasting of multimedia files to iPods or other similar devices. Subscribers areable to view or listen to podcasts online.
Point of Sale (POS) (also called Point of Purchase)
The location, usually within a retail outlet, where the customer decides whether to make a purchase. Seealso 'EPOS - Electronic Point of Sale'.
Pop-under
Automatically launched internet advertisement that appears in a small window behind another webpage.See ‘Pop-up'.
Pop-up
Automatically launched internet advertisement that appears in a small window in front of anotherwebpage. See ‘Pop-under'.
Porter's Five Forces
An analytic model developed by Michael E. Porter. The five forces in terms of which the model analysesbusinesses and industries are: Buyers, Suppliers, Substitutes, New Entrants and Rivals.
Portfolio (and Portfolio Analysis)
The set of products or services which a company decides to develop and market. Portfolio analysis is theprocess of comparing the contents of the portfolio to see which products or services are the mostpromising and deserving of further investment, and which should be discontinued.
Positioning
The creation of an image for a product or service in the minds of customers, both specifically to that itemand in relation to competitive offerings.
POSTAR
Poster Audience Research - the UK Outdoor advertising industry audience measurement organisation.
Premium Pricing
Highly pricing a product or service to give an impression of quality or in order to offer the consumer additional service.
Prestige Pricing
Applying a high price to a product to indicate its high quality.
See ‘Premium Pricing’.
Price Maker
A producer who has enough market power to influence prices.
Price Taker
A producer who has no power to influence prices.
Problem Child
See ‘Boston Matrix’.
Product Life Cycle
A model describing the progress of a product from the inception of the idea, via the main period of sales, to its eventual decline.
Product Placement
The use of a product or service within a television or radio programme, or a film: an example would be the appearance of a leading coffee brand on a table in "Eastenders". There are strict guidelines as to the payments that can be given for such appearances.
Professional Marketing Standards
CIM's grid of marketing competencies required to achieve business aims. CIM's new syllabus structure is mapped out against each marketing level as identified in the grid. Previously called Statements ofMarketing Practice. For full copy visit http://www.cim.co.uk/resources/home.aspx.
Professional Services
The services of individuals or companies that are accredited by professional bodies, such as accountants,lawyers and chartered marketers. See also 'Chartered Marketers'
Promotional Mix The components of an individual promotional campaign, which are likely to include advertising, personal selling, public relations, direct marketing, packaging, and sales promotion.
Promotional Plan
Detailed plan describing promotional objectives and activities involved in achieving the role of promotions as laid down in the marketing plan.
Proximity Marketing
The wireless transmission of advertising to compatible devices in a local area.
P's See 'marketing mix'.
Public Relations
The function or activity that aims to establish and protect the reputation of a company or brand, and to create mutual understanding between the organisation and the segments of the public with whom it needs to communicate.
Pull Promotion
Pull promotion, in contrast to Push promotion, addresses the customer directly with a view to getting them to demand the product, and hence "pull" it down through the distribution chain. It focuses on advertising and above the line activities. See also 'push promotion'
Push Promotion
Push promotion relies on the next link in the distribution chain - e.g. a wholesaler or retailer - to "push" out products to the customer. It revolves around sales promotions - such as price reductions and point of sale displays - and other below the line activities. See also 'Sales Promotion'.
Material used to protect goods; also an opportunity to present the brand and logo.
PANSES
Politically Active and Not Seeking Employment - a demographic grouping
Parallel Importing
See 'grey marketing'
Pareto Principle
Also called the 80/20 rule. The principle that about 80% of the outcomes will come from about 20% of your effort.
Payment By Results (PBR)
Remuneration of an employee or service provider according to productivity or other measure of performance
Peer to Peer (P2P) Marketing
Technique of encouraging customers to promote your product to one another, particularly on the Internet. An example might be a web site that offers users a discount on products in return for recruiting new customers for the site. See also 'word of mouth'; 'viral marketing'.
PEEST
Political, Economic, Environmental, Socio-cultural and Technological - a framework for viewing the macro environment. See 'macro-environment'.
Penetration Pricing
Adoption of a lower price strategy in order to secure rapid wide penetration of a market.
Perceptual Mapping
Process of representing consumer perceptions of brands in relationship to each other. Consumers’ perceptions of brands are measured against certain criteria, ie value, customer service, innovation and quality. See ‘Brand Mapping and Brand Maps’.
Perfect Competition
An open market situation where free trade prevails without restriction, where all goods of a particular nature are homogeneous and where all relevant information is known to both buyers and sellers.
Performance Prism
A performance measurement and management framework. It addresses all of an organisation’s stakeholders - principally investors, customers, intermediaries, employees, suppliers, regulators and communities.
Personal Data
Data related to a living individual who can be identified from the information; includes any expression of
opinion about the individual.
Personal Selling
One-to-one communication between seller and prospective purchaser
PEST
Political, Economic, Socio-cultural and Technological - a framework for viewing the macro environment.
See also 'macro-environment'
Pester Power
The influence children have over purchases by adults: an influence which, controversially, advertisers may seek to stimu late.
PESTLE
Political, Economic, Socio-cultural, Technological, Legal and Environmental - a framework for viewing the macro environment. See 'macro-environment'.
Pharming
Redirecting traffic from a website, such as a bank, to a bogus website designed to mimic the original website in order to steal a user’s login details and other personal information.
See ‘Phishing’.
Phishing
Sending legitimate-looking emails, often giving the impression that they are sent from a trusted source, such as a bank, asking for personal information that can be used for identity theft. See ‘Pharming’.
Physical Evidence
The elements of 'marketing mix' which customers can actually see or experience when they use a service, and which contribute to the perceived quality of the service, e.g. the physical evidence of a retail bank could include the state of the branch premises, as well as the delivery of the banking service itself.
PIMS
Profit Impact of Marketing Strategies: a US database supplying data such as environment, strategy, competition and internal data with respect to 3000 business. This data can be used for benchmarking purposes.
Podcast/Podcasting
Term used to define the broadcasting of multimedia files to iPods or other similar devices. Subscribers areable to view or listen to podcasts online.
Point of Sale (POS) (also called Point of Purchase)
The location, usually within a retail outlet, where the customer decides whether to make a purchase. Seealso 'EPOS - Electronic Point of Sale'.
Pop-under
Automatically launched internet advertisement that appears in a small window behind another webpage.See ‘Pop-up'.
Pop-up
Automatically launched internet advertisement that appears in a small window in front of anotherwebpage. See ‘Pop-under'.
Porter's Five Forces
An analytic model developed by Michael E. Porter. The five forces in terms of which the model analysesbusinesses and industries are: Buyers, Suppliers, Substitutes, New Entrants and Rivals.
Portfolio (and Portfolio Analysis)
The set of products or services which a company decides to develop and market. Portfolio analysis is theprocess of comparing the contents of the portfolio to see which products or services are the mostpromising and deserving of further investment, and which should be discontinued.
Positioning
The creation of an image for a product or service in the minds of customers, both specifically to that itemand in relation to competitive offerings.
POSTAR
Poster Audience Research - the UK Outdoor advertising industry audience measurement organisation.
Premium Pricing
Highly pricing a product or service to give an impression of quality or in order to offer the consumer additional service.
Prestige Pricing
Applying a high price to a product to indicate its high quality.
See ‘Premium Pricing’.
Price Maker
A producer who has enough market power to influence prices.
Price Taker
A producer who has no power to influence prices.
Problem Child
See ‘Boston Matrix’.
Product Life Cycle
A model describing the progress of a product from the inception of the idea, via the main period of sales, to its eventual decline.
Product Placement
The use of a product or service within a television or radio programme, or a film: an example would be the appearance of a leading coffee brand on a table in "Eastenders". There are strict guidelines as to the payments that can be given for such appearances.
Professional Marketing Standards
CIM's grid of marketing competencies required to achieve business aims. CIM's new syllabus structure is mapped out against each marketing level as identified in the grid. Previously called Statements ofMarketing Practice. For full copy visit http://www.cim.co.uk/resources/home.aspx.
Professional Services
The services of individuals or companies that are accredited by professional bodies, such as accountants,lawyers and chartered marketers. See also 'Chartered Marketers'
Promotional Mix The components of an individual promotional campaign, which are likely to include advertising, personal selling, public relations, direct marketing, packaging, and sales promotion.
Promotional Plan
Detailed plan describing promotional objectives and activities involved in achieving the role of promotions as laid down in the marketing plan.
Proximity Marketing
The wireless transmission of advertising to compatible devices in a local area.
P's See 'marketing mix'.
Public Relations
The function or activity that aims to establish and protect the reputation of a company or brand, and to create mutual understanding between the organisation and the segments of the public with whom it needs to communicate.
Pull Promotion
Pull promotion, in contrast to Push promotion, addresses the customer directly with a view to getting them to demand the product, and hence "pull" it down through the distribution chain. It focuses on advertising and above the line activities. See also 'push promotion'
Push Promotion
Push promotion relies on the next link in the distribution chain - e.g. a wholesaler or retailer - to "push" out products to the customer. It revolves around sales promotions - such as price reductions and point of sale displays - and other below the line activities. See also 'Sales Promotion'.
MARKETING GLLOSSARY (Q)
Qualitative Research
Market research that does not use numerical data but relies on interviews, 'focus groups', 'repertory grid', and the like, usually resulting in findings which are more detailed but also more subjective than those of 'quantitative research'.
Quantitative Research
Market research that concentrates on statistics and other numerical data, gathered through opinion polls, customer satisfaction surveys and so on. Compare 'qualitative research'.
Market research that does not use numerical data but relies on interviews, 'focus groups', 'repertory grid', and the like, usually resulting in findings which are more detailed but also more subjective than those of 'quantitative research'.
Quantitative Research
Market research that concentrates on statistics and other numerical data, gathered through opinion polls, customer satisfaction surveys and so on. Compare 'qualitative research'.
MARKETING GLLOSSARY (R)
R & D
Research and development.
RAJAR
Radio Joint Audience Research Operates a single audience measurement system for the radio industry - BBC, UK licensed and other commercial stations.
RAPPIES
Retired Affluent Professionals - a demographic grouping.
Recession
A period of negative economic growth. Common criteria used to define when a country is in a recession are two successive quarters of falling GDP or a year-on-year fall in GDP.
Reference Group
A group with which the customer identifies in some way, and whose opinions and experiences influence the customer's behaviour. For example, a sports fan might buy a brand of equipment used by a favourite team.
Relationship Marketing
The strategy of establishing a relationship with the customer which continues well beyond the first purchase.
Repertory Grid Method (RGM)
A technique for representing the attitudes and perceptions of individuals; also called Personal Construct Technique. The technique can be useful in developing market
research (and other) questionnaires. Also known as 'Kelly Grids'
Residential Training Courses
Intensive training courses involving evening training sessions and including overnight stay and full accommodation
Return on Equity (ROE)
Measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners. ROE is viewed as one of the most important financial ratios.
Return on Investment (ROI)/Return on Capital Employed (ROCE)
The value that an organisation derives from investing in a project.
Return on Marketing Investment (ROMI)
The value that an organisation derives from investing in marketing. See ‘Return on
Investment (ROI).
Return on Sales Enablement (ROSE)
The value an organisation derives from investing in activities that drive sales.
RSS (Really Simple Syndication)
Software that allows electronic content to be sent to websites or compatible devices as soon as it is updated or posted. There is some debate as to what RSS actually stands for. Really Simple Syndication is the most commonly used term.
Research and development.
RAJAR
Radio Joint Audience Research Operates a single audience measurement system for the radio industry - BBC, UK licensed and other commercial stations.
RAPPIES
Retired Affluent Professionals - a demographic grouping.
Recession
A period of negative economic growth. Common criteria used to define when a country is in a recession are two successive quarters of falling GDP or a year-on-year fall in GDP.
Reference Group
A group with which the customer identifies in some way, and whose opinions and experiences influence the customer's behaviour. For example, a sports fan might buy a brand of equipment used by a favourite team.
Relationship Marketing
The strategy of establishing a relationship with the customer which continues well beyond the first purchase.
Repertory Grid Method (RGM)
A technique for representing the attitudes and perceptions of individuals; also called Personal Construct Technique. The technique can be useful in developing market
research (and other) questionnaires. Also known as 'Kelly Grids'
Residential Training Courses
Intensive training courses involving evening training sessions and including overnight stay and full accommodation
Return on Equity (ROE)
Measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners. ROE is viewed as one of the most important financial ratios.
Return on Investment (ROI)/Return on Capital Employed (ROCE)
The value that an organisation derives from investing in a project.
Return on Marketing Investment (ROMI)
The value that an organisation derives from investing in marketing. See ‘Return on
Investment (ROI).
Return on Sales Enablement (ROSE)
The value an organisation derives from investing in activities that drive sales.
RSS (Really Simple Syndication)
Software that allows electronic content to be sent to websites or compatible devices as soon as it is updated or posted. There is some debate as to what RSS actually stands for. Really Simple Syndication is the most commonly used term.
MARKETING GLLOSSARY (S)
Sales Promotion
A range of techniques used to engage the purchaser. These may include discounting, coupons, guarantees, free gifts, competitions, vouchers, demonstrations, bonus commission and sponsorship.
Sampling
The use of a statistically representative subset as a proxy for an entire population, for example in order to facilitate quantitative market research.
Sandwich Board
Advertising poster carried by a person in public, usually in the form of two displays, one at the front and one at the back, suspended over the shoulder and thus “sandwiching” the carrier.
Scamp
Preliminary design or layout of an advertisement or other promotional material. Also a UK pressure group against offensive advertising (S.C.A.M.P. - Stop Crude Advertising Material in Public).
Screening
The evaluation or testing of a product, and sometimes its 'marketing mix', at various stages in the 'NPD' cycle.
Search Marketing
Promoting a company’s website using internet search engines. Either getting a company website listed in search results (unpaid) or as a listing on the same webpage as the search results (paid).
Segmentation
See 'market segmentation'.
Seminars
One day training sessions involving role play and syndicate group work exercises.
Sensitive Data
Information relating to racial or ethnic origin, political opinions, religious or other beliefs, trade union membership, health, sex life and criminal convictions.
Seven Ss
See 'McKinsey's seven Ss'.
Shallow Linking
Hyperlinking to a website's homepage.
Share of Voice (SOV)
The total percentage that you possess of the particular niche, market, or audience you are targeting.
Shareholder Value
The worth of a company from the point of view of its shareholders. Maximising shareholder value is a common objective for business management.
SINBAD
Single Income, No Boyfriend and Absolutely Desperate - a demographic grouping.
SINDI
Single Independent and Divorced (only applies to women) - a demographic grouping.
SITCOM
Single Income, Two Kids Outrageous Mortgage - a demographic grouping.
Skills Level Analysis Process
An online tool to assess skills of marketing professionals and to measure them against business aims and Objectives.
Skimming
Setting the original price high in the early stages of the product life cycle in an attempt to get as much profit as possible before prices are driven down by increasing competition.
SLAP
Skills Levels Analysis Process, an online tool to assess skills of marketing professionals and to measure them against business aims and objectives.
SLEPT
Socio-cultural, Legal, Economic, Political and Technological - a framework for viewing the 'macro environment'.
SMART objectives
A simple acronym used to set objectives is called SMART objectives. SMART stands for:
1. Specific – Objectives should specify what they want to achieve.
2. Measurable – You should be able to measure whether you are meeting the objectives or not.
3. Achievable - Are the objectives you set, achievable and attainable?
4. Realistic – Can you realistically achieve the objectives with the resources you have?
5. Time – When do you want to achieve the set objectives?
SME
Small to Medium Enterprise. Variously defined: according one EU definition, it must employ under 250 people, have either a turnover of less than EUR 40 million or net balance sheet assets of less than EUR 27 million, and not be more than 25% owned by a larger company.
SME (Small to Medium Enterprise)
Usually defined as organisations with fewer than 250 employees, with medium businesses having 50 to 249 employees and small businesses having up to 49 employees. Small businesses include micro businesses, which can be separately defined as having up to five employees.
SMS
Short Message Service. Text only messages sent by mobile phones, or other compatible devices, over a wireless network.
Social Marketing
The application of marketing concepts and techniques to propagate ideas and behaviours for the social good.
Socially Responsibly Marketing
The concept that marketing should not harm the social environment and that it should work to benefit society in the long term.
Societal Marketing
See ‘Social Marketing’.
SOHO
Small-office/Home-office.
SOSTT
Situation, Objective, Strategy, Tactics and Targets.
Space Maps
See ‘Brand Mapping and Brand Maps’.
SPAM
Unsolicited e-mail, often advertisements sent to a very large number of recipients.
Spin
The attempt to manipulate the depiction of news or events in the media through artful public relations - often used with derogatory connotations.
Sponsorship
Specialised form of sales promotion where a company will help fund an event or support a business venture in return for publicity.
Stakeholder
An individual, organisation or community that has an interest in the strategy and operation of an organisation. Stakeholders may include shareholders, employees, customers, government, local communities, opinion formers, suppliers and partners.
Standard Industrial Classification (SIC) Codes
Codes that identify a business or service according to its primary kind of activity. Two-digit codes are the most general classifications, but most codes use at least four digits to allow more specific industry identifications.
Standard Occupational Classification (SOC) Codes
Codes that identify workers by job function. SOC codes sort occupations into a small number of broad categories, usually using a numerical coding system. The coding within these categories is extended to define narrower categories and job functions.
Star
See ‘Boston Matrix’.
Statements of Marketing Practice (SOMPS)
CIM's grid of marketing competencies required to achieve business aims. CIM's new syllabus structure is mapped out against each marketing level as identified in the grid.
Now called Professional Marketing Standards.
Storyboards
Sequence of sketches designed to show the main elements of a television or cinema commercial.
SUPPIES
Senior Urban Professionals - a demographic grouping.
Supplier Relationship Management (SRM)
Managing relationships with suppliers often through the use of IT systems - compare 'customer relationship management'
Supply (and Demand)
See 'Demand'.
Supply Chain
The network of suppliers, manufacturers and distributors involved in the production and delivery of a product.
SWOT Analysis
A method of analysis which examines a company's Strengths, Weaknesses, Opportunities and Threats. Often used as part of the development process for a marketing plan, or to feed the results of a marketing audit back into a revised plan.
Syndicate Groups
Smaller groups of delegates from a larger main group - usually separated out to work through a practical exercise, eg a role play.
A range of techniques used to engage the purchaser. These may include discounting, coupons, guarantees, free gifts, competitions, vouchers, demonstrations, bonus commission and sponsorship.
Sampling
The use of a statistically representative subset as a proxy for an entire population, for example in order to facilitate quantitative market research.
Sandwich Board
Advertising poster carried by a person in public, usually in the form of two displays, one at the front and one at the back, suspended over the shoulder and thus “sandwiching” the carrier.
Scamp
Preliminary design or layout of an advertisement or other promotional material. Also a UK pressure group against offensive advertising (S.C.A.M.P. - Stop Crude Advertising Material in Public).
Screening
The evaluation or testing of a product, and sometimes its 'marketing mix', at various stages in the 'NPD' cycle.
Search Marketing
Promoting a company’s website using internet search engines. Either getting a company website listed in search results (unpaid) or as a listing on the same webpage as the search results (paid).
Segmentation
See 'market segmentation'.
Seminars
One day training sessions involving role play and syndicate group work exercises.
Sensitive Data
Information relating to racial or ethnic origin, political opinions, religious or other beliefs, trade union membership, health, sex life and criminal convictions.
Seven Ss
See 'McKinsey's seven Ss'.
Shallow Linking
Hyperlinking to a website's homepage.
Share of Voice (SOV)
The total percentage that you possess of the particular niche, market, or audience you are targeting.
Shareholder Value
The worth of a company from the point of view of its shareholders. Maximising shareholder value is a common objective for business management.
SINBAD
Single Income, No Boyfriend and Absolutely Desperate - a demographic grouping.
SINDI
Single Independent and Divorced (only applies to women) - a demographic grouping.
SITCOM
Single Income, Two Kids Outrageous Mortgage - a demographic grouping.
Skills Level Analysis Process
An online tool to assess skills of marketing professionals and to measure them against business aims and Objectives.
Skimming
Setting the original price high in the early stages of the product life cycle in an attempt to get as much profit as possible before prices are driven down by increasing competition.
SLAP
Skills Levels Analysis Process, an online tool to assess skills of marketing professionals and to measure them against business aims and objectives.
SLEPT
Socio-cultural, Legal, Economic, Political and Technological - a framework for viewing the 'macro environment'.
SMART objectives
A simple acronym used to set objectives is called SMART objectives. SMART stands for:
1. Specific – Objectives should specify what they want to achieve.
2. Measurable – You should be able to measure whether you are meeting the objectives or not.
3. Achievable - Are the objectives you set, achievable and attainable?
4. Realistic – Can you realistically achieve the objectives with the resources you have?
5. Time – When do you want to achieve the set objectives?
SME
Small to Medium Enterprise. Variously defined: according one EU definition, it must employ under 250 people, have either a turnover of less than EUR 40 million or net balance sheet assets of less than EUR 27 million, and not be more than 25% owned by a larger company.
SME (Small to Medium Enterprise)
Usually defined as organisations with fewer than 250 employees, with medium businesses having 50 to 249 employees and small businesses having up to 49 employees. Small businesses include micro businesses, which can be separately defined as having up to five employees.
SMS
Short Message Service. Text only messages sent by mobile phones, or other compatible devices, over a wireless network.
Social Marketing
The application of marketing concepts and techniques to propagate ideas and behaviours for the social good.
Socially Responsibly Marketing
The concept that marketing should not harm the social environment and that it should work to benefit society in the long term.
Societal Marketing
See ‘Social Marketing’.
SOHO
Small-office/Home-office.
SOSTT
Situation, Objective, Strategy, Tactics and Targets.
Space Maps
See ‘Brand Mapping and Brand Maps’.
SPAM
Unsolicited e-mail, often advertisements sent to a very large number of recipients.
Spin
The attempt to manipulate the depiction of news or events in the media through artful public relations - often used with derogatory connotations.
Sponsorship
Specialised form of sales promotion where a company will help fund an event or support a business venture in return for publicity.
Stakeholder
An individual, organisation or community that has an interest in the strategy and operation of an organisation. Stakeholders may include shareholders, employees, customers, government, local communities, opinion formers, suppliers and partners.
Standard Industrial Classification (SIC) Codes
Codes that identify a business or service according to its primary kind of activity. Two-digit codes are the most general classifications, but most codes use at least four digits to allow more specific industry identifications.
Standard Occupational Classification (SOC) Codes
Codes that identify workers by job function. SOC codes sort occupations into a small number of broad categories, usually using a numerical coding system. The coding within these categories is extended to define narrower categories and job functions.
Star
See ‘Boston Matrix’.
Statements of Marketing Practice (SOMPS)
CIM's grid of marketing competencies required to achieve business aims. CIM's new syllabus structure is mapped out against each marketing level as identified in the grid.
Now called Professional Marketing Standards.
Storyboards
Sequence of sketches designed to show the main elements of a television or cinema commercial.
SUPPIES
Senior Urban Professionals - a demographic grouping.
Supplier Relationship Management (SRM)
Managing relationships with suppliers often through the use of IT systems - compare 'customer relationship management'
Supply (and Demand)
See 'Demand'.
Supply Chain
The network of suppliers, manufacturers and distributors involved in the production and delivery of a product.
SWOT Analysis
A method of analysis which examines a company's Strengths, Weaknesses, Opportunities and Threats. Often used as part of the development process for a marketing plan, or to feed the results of a marketing audit back into a revised plan.
Syndicate Groups
Smaller groups of delegates from a larger main group - usually separated out to work through a practical exercise, eg a role play.
MARKETING GLLOSSARY (T)
Tailored Training
A training programme that is customised to suit particular company/industry objectives.
Target Group Index (TGI)
A continuous survey of adults in which their purchasing habits in detail are related to their media exposure, thus facilitating accurate media planning.
Targeting
The use of 'market segmentation' to select and address a key group of potential purchasers.
Telemarketing
The marketing of a product or service over the telephone.
Telephone Preference Service (TPS)
A database of business and individual telecoms subscribers who have elected not to receive unsolicited direct marketing calls.
Test Marketing
Making samples of a new product available to see what representative consumers think of it and its proposed 'marketing mix'.
TINKIE
Two Incomes, Nanny and Kids - a demographic grouping.
Trade Marketing
Marketing to the retail and distributive trades.
Training Course
A course that focuses on practical application of skills to better enable delegates in their workplace.
Training Qualification
A qualification for sales and marketing professionals that is assessed through work based projects.
Tweenagers
8 to 12 year olds or 7 to 11 year olds.
A training programme that is customised to suit particular company/industry objectives.
Target Group Index (TGI)
A continuous survey of adults in which their purchasing habits in detail are related to their media exposure, thus facilitating accurate media planning.
Targeting
The use of 'market segmentation' to select and address a key group of potential purchasers.
Telemarketing
The marketing of a product or service over the telephone.
Telephone Preference Service (TPS)
A database of business and individual telecoms subscribers who have elected not to receive unsolicited direct marketing calls.
Test Marketing
Making samples of a new product available to see what representative consumers think of it and its proposed 'marketing mix'.
TINKIE
Two Incomes, Nanny and Kids - a demographic grouping.
Trade Marketing
Marketing to the retail and distributive trades.
Training Course
A course that focuses on practical application of skills to better enable delegates in their workplace.
Training Qualification
A qualification for sales and marketing professionals that is assessed through work based projects.
Tweenagers
8 to 12 year olds or 7 to 11 year olds.
MARKETING GLLOSSARY (U)
Unique Selling Preposition (USP)
The benefit that a product or service can deliver to customers that is not offered by any competitor: one of the fundamentals of effective marketing and business.
Unmentionables
Groups of products that are considered 'too delicate' to mention or to advertise. These may include sanitary towels, condoms or incontinence pads.
The benefit that a product or service can deliver to customers that is not offered by any competitor: one of the fundamentals of effective marketing and business.
Unmentionables
Groups of products that are considered 'too delicate' to mention or to advertise. These may include sanitary towels, condoms or incontinence pads.
MARKETING GLLOSSARY (V)
VALS
Values and Lifestyles: the categorisation of people according to their way of living, using groupings such as Belongers, Achievers, Emulators, I-am-me, Experiential, Socially conscious, Survivors, Sustainers and Integrators.
Value Added
see 'added value' Value Preposition The set of qualities of a good or service that allows it to fulfil the customer's needs and desires, as opposed to simply benefiting the seller.
Viral Marketing
Spreading a brand message using word of mouth (or electronically - 'word of mouse') from a few points of dissemination. Typical techniques include using email messages, jokes, web addresses, film clips and games that get forwarded on electronically by recipients Virtual Community A community that exists and interacts online.
Vision
The long-term aims and aspirations of the company for itself.
VoIP
Voice over Internet Protocol. Technology allowing voice communication to be delivered using internet protocol, an alternative to delivering voice communication over a public switched telephone network.
Values and Lifestyles: the categorisation of people according to their way of living, using groupings such as Belongers, Achievers, Emulators, I-am-me, Experiential, Socially conscious, Survivors, Sustainers and Integrators.
Value Added
see 'added value' Value Preposition The set of qualities of a good or service that allows it to fulfil the customer's needs and desires, as opposed to simply benefiting the seller.
Viral Marketing
Spreading a brand message using word of mouth (or electronically - 'word of mouse') from a few points of dissemination. Typical techniques include using email messages, jokes, web addresses, film clips and games that get forwarded on electronically by recipients Virtual Community A community that exists and interacts online.
Vision
The long-term aims and aspirations of the company for itself.
VoIP
Voice over Internet Protocol. Technology allowing voice communication to be delivered using internet protocol, an alternative to delivering voice communication over a public switched telephone network.
MARKETING GLLOSSARY (W)
WAP
Wireless Application Protocol. Specification allowing wireless devices to interact with information sources. A common application is the use of microbrowsers for wireless internet access.
War Horse
A product with a large market share of a declining market.
Web 2.0
Concept of the World Wide Webs transformation from a collection of websites to a computing platform supporting web applications, harnessing (pooling) the intelligence of its users and allowing users to define how they interact with organisations and each other.
Weblogs
An internet publishing device allowing an individual or company to express their thoughts and opinions. Businesses can use weblogs as a marketing communication channel.
White Goods
Large electrical devices for domestic use, such as fridges, freezers and dishwashers. Used to be cased in white enamel, hence the name.
White Space
Areas of any company where strategy and authority are vague, and where useful entrepreneurial activity can flourish. Compare 'black space'.
WI-FI (Wireless Fidelity)
Wireless network connection standards allowing computers LAN (Local Area Network) access via a wireless link.
WiMAX
Worldwide Interoperability for Microwave Access. Technology to deliver wireless broadband access over distances of up to 6 miles, an alternative to broadband access via a fixed line local loop.
WOOF
Well Off Older Folk - a demographic grouping.
WOOPIES
Well-Off Older People - a demographic grouping.
Word of Mouth
The spreading of information through human interaction alone. Some campaigns have used this as key element, for example, the British Gas privatisation's 'ask Sid' promotion. See also 'viral marketing'.
Workshops
Interactive training sessions involving role play and syndicate group work exercises.
Wireless Application Protocol. Specification allowing wireless devices to interact with information sources. A common application is the use of microbrowsers for wireless internet access.
War Horse
A product with a large market share of a declining market.
Web 2.0
Concept of the World Wide Webs transformation from a collection of websites to a computing platform supporting web applications, harnessing (pooling) the intelligence of its users and allowing users to define how they interact with organisations and each other.
Weblogs
An internet publishing device allowing an individual or company to express their thoughts and opinions. Businesses can use weblogs as a marketing communication channel.
White Goods
Large electrical devices for domestic use, such as fridges, freezers and dishwashers. Used to be cased in white enamel, hence the name.
White Space
Areas of any company where strategy and authority are vague, and where useful entrepreneurial activity can flourish. Compare 'black space'.
WI-FI (Wireless Fidelity)
Wireless network connection standards allowing computers LAN (Local Area Network) access via a wireless link.
WiMAX
Worldwide Interoperability for Microwave Access. Technology to deliver wireless broadband access over distances of up to 6 miles, an alternative to broadband access via a fixed line local loop.
WOOF
Well Off Older Folk - a demographic grouping.
WOOPIES
Well-Off Older People - a demographic grouping.
Word of Mouth
The spreading of information through human interaction alone. Some campaigns have used this as key element, for example, the British Gas privatisation's 'ask Sid' promotion. See also 'viral marketing'.
Workshops
Interactive training sessions involving role play and syndicate group work exercises.
MARKETING GLLOSSARY (Y)
YAPPIES
Young Affluent Parents - a demographic grouping
YOOFS
Young, free and single – a demographic grouping.
Youth Market
Young customers viewed as a marketing opportunity. Typically the term denotes those aged 16 to 24, but various age ranges are in use, from '12 to 24' to 'under 35'.
YUPPIE
Young Urban Professional - a demographic grouping
Young Affluent Parents - a demographic grouping
YOOFS
Young, free and single – a demographic grouping.
Youth Market
Young customers viewed as a marketing opportunity. Typically the term denotes those aged 16 to 24, but various age ranges are in use, from '12 to 24' to 'under 35'.
YUPPIE
Young Urban Professional - a demographic grouping
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