ICDC marketing vocab

Affinity Partner

a licensing arrangement where a business allows a company to use its brand (name, logo, etc.) and access to its audience to sell a product or service, in return for a royalty and/or a benefit to the business.

agent

An independent company or person who resells a product or service.

Broker

An individual or a firm when it acts as an agent for a customer as in negotiating contracts, purchases, or sales in return for a fee or commission for its services.

Business Ethics

the critical, structured examination of how people and institutions should behave in the world of commerce. In particular, this involves examining appropriate constraints on the pursuit of self-interest, or (for firms) profits when the actions of individuals or firms affects others.

Channel

A means that a manufacturer may market and sell products to end users and consumers as a system used for extending sales beyond a company's internal resources, using partners such as resellers and retailers.

Channel Management

A process by which a company creates formalized programs for selling and servicing customers within a specific network in order to reach the widest possible customer base.

Channel Member

Is one part of the organized network of institutions which, in combination, perform all the functions required to link producers with end users.

Channel of Distribution

A specified and organized network of agencies and institutions which in combination perform all the functions required to link merchandisers with end customers to accomplish the marketing task of distribution.

Consumer

A person or company a product/service is sold to and who will make use of the product. Also called a "customer" .

Contract

A voluntary, deliberate, and legally binding agreement between two or more competent parties. Contracts are usually written but may be spoken or implied.

Analytics

Extensive use of mathematics, statistics, and the use of descriptive techniques and predictive models to gain valuable knowledge from data.

Buzz Marketing

A viral type of technique that is focused on maximizing the word-of-mouth potential of a particular campaign or product.

Customer Survey

Polling to identify level of satisfaction with an existing product, and to discover their express and hidden needs and expectations for new or proposed product(s).

Data Collection

Is the systematic approach to gathering and measuring information from a variety of sources to get a complete and accurate picture of an area of interest.

Data Mining

Using computer analysis software to study collected information and find meaningful patterns or trends.

Exploratory Marketing Research

Focus is on the discovery of ideas and insights as opposed to collecting statistically accurate data. Is typically done at the beginning of a marketing research plan.

Focus Group

A qualitative research technique in which a group of about eight people is invited to a neutral venue to discuss a given subject. The principle is the same as an in-depth interview, except that group dynamics help to make the discussion livelier and more wide-ranging.

Forecasting

Anticipating what buyers are likely to do under a given set of conditions.

Information Management

Application of organized techniques to collect data, communicate it within and outside the organization, and process it to enable managers to make quicker and better decisions.

Marketing Data

Insights and decisions that arise from the analysis of collected information about or from consumers.

Marketing Research

Scientific discovery methods applied to decision making. It generally comprises of (1) identification of a specific needs area and measurement of its size and other characteristics. (2) identification of a need or want and the characteristic of the good or service that will satisfy it. (3) identification of the preferences, motivations, and buying behavior of the targeted customer.

Marketing Research Design

A framework or blueprint for conducting a fact-finding project.

Primary Marketing Research

Data collected from its source and generally gathered by a business for its own specific purposes. Tends to take the raw data such as information collected through focus groups or surveys, and interpret the data for a variety of business purposes.

Questionnaire

A list of research or survey questions asked to respondents, and designed to extract specific information.

Rating Scales

Critical research tool because it relates to the types of statistics you can use to analyze data collected. Typical examples of types used are interval, ratio, nominal and ordinal.

Regulation

A principle or rule (with or without the coercive power of law) employed in controlling, directing, or managing an activity, organization, or system.

Response Errors

A type of non-sampling flaw caused by respondents intentionally or unintentionally providing incorrect answers to research questions.

Risk Analysis

A method by which possible rates of returns and their probabilities are calculated by obtaining estimates for uncertain variables affecting profitability. This type of in-depth study can assist businesses in making better decisions.

Sampling Plan

Provides an outline on the basis of which research is conducted. It tells which category is to be surveyed, what size the representative cross-section should be, and how the respondents should be chosen out of the population.

Secondary Market Research

Industry data that is already been compiled and organized . The data may come from previous industry reports or studies by official government bodies, trade associations and chambers of commerce or industry competitors, Is quantitative information that can often be procured for free or for a very low cost.

Bait and Switch

Attracting customers by advertising a sale on a certain item and then pressuring them to buy a higher-priced alternative.

Break Even Point

The juncture at which revenue equals total costs. After this, a business will be making a profit.

Competitor-Based Pricing

A method of valuation used to set a given dollar amount for a product or service based on that of the competitors.

Cost Oriented Pricing

Uses the actual outlay of acquiring or producing a product and all other business expenses as a basis for the valuation of that product.

Economy Pricing

A very basic, low-cost approach--nothing fancy, just the bare minimum to keep costs low and attract a specific segment of the market that is very sensitive to cost. The costs of marketing and promoting a product are kept to a minimum.

Market Share

A percentage of total sales in an economic network captured by a certain company.

Markup

The difference between the cost of a product and its selling price.

Odd-Even Pricing

Setting valuation that all ends with a specified type of number. Numeric valuation such as $7.95 and $9.99 suggests a bargain; while an expression such as $10, $50 suggests quality.

Penetration Pricing

Setting the initial dollar amount at which to sell low, with the hope of saturating the market with the product and gaining market share.

Prestige Pricing

Setting the initial dollar amount at which to sell low, with the hope of saturating the market with the product and gaining market share.

Price

numerical monetary value assigned to a product or service.

Price Discrimination

The practice of selling of the same product to different buyers at different costs.

Price Fixing

An agreement between two or more parties, generally considered to be competitors, to set, maintain, and charge a specified value for a particular product. Is an unlawful practice in a free market because it can stifle innovation, artificially raise costs, create inefficiency, and possibly create a monopoly in which output is reduced and costs are raised.

Price Lining

Selling all products in a given category at certain valuation. Ex: all the jeans in a clothing store may either be $35, $45, or $60.

Price Strategy

A method adopted by a firm to set its selling valuation. It usually depends on the firm's average costs, and on the customer's perceived value of the product in comparison to his or her perceived value of the competing products.

Profitability

Method of good or service pricing in which (in addition to all costs) a certain level of additional earnings are factored in.

Psycological Pricing

Technique that is arrived at which changes the perception of a product (e.g. it's a bargain; it's high quality).

Sherman Anti-Trust Act

Passed in 1890, it prohibits certain business activities that the federal government believes are anticompetitive. The legislation has been used to combat monopolies.

Skimming

Setting the initial price high in hopes of capitalizing on the high demand for a new product; designed to gain maximum revenue advantage before other competitors begin offering similar products or product alternatives.

Value

The costing of good or service according to how much consumers are willing to pay for it, rather than upon its production and delivery costs

Brand

A mixture of attributes, tangible and intangible, symbolized in a trademark, which, if managed properly, creates value and influence. Offers customers a means to choose and enable recognition within cluttered markets.

Consumer Protection Laws

Government regulations designed and implemented to ensure fair competition and the free flow of truthful information in the marketplace.

Customer Relationship Management

Tracking consumer behavior for the purpose of developing marketing processes and other relative connections that bond the consumer to the brand. Developing software or systems to provide one-to-one service and personal contact between the company and the consumer.

Customer Touch Points

Any encounter where consumers and business engage to exchange information, provide service, or handle transactions.

Customer Voice

Collective insight into buyer needs, wants, perceptions, and preferences gained through direct and indirect questioning. These discoveries are translated into meaningful objectives that help in closing the gap between consumer expectations and the firm's offerings.

External Audiences

Individuals or groups outside of, and not closely connected with, an organization at whom it's communications and promotional efforts are aimed.

Guarantee

Similar to a warranty, it is intended to correct a problem with a product or service and focuses on a specific aspect of that product or service.

Internal Audience

A public relations term that refers to individuals or groups within (or closely associated with) an organization.

Launch

The initial marketing of a new product in a particular market. The way in which the initial marketing is carried out greatly affects the product's profitability throughout its life cycle

Market Grades

The sorting of individual units of a product into well defined classes of quality. The goods are sorted out into different lots in accordance with the specified standards. The established standards lay down the classes of quality of the product. Involves the division of products into classes made up of units possessing similar characteristics of size and quality.

Market Opportunities

Newly identified need, want, or demand trend that a firm can exploit because it is not being addressed by the competitors.

Market Position

A measure of the overall placing of a company or product on a given network. Defined as share multiplied by share of mind.

Market Standards

Setting up basic measures to which the products must conform and taking steps to ensure that the goods actually produced adhere to these measures. Reflect desirable features of a product in terms of its design, weight, color, etc. Means that goods are of a specified and uniform quality.

Positioning

The process by which marketers work to create an image or identity in the minds of their target market for its product, brand, or organization.

Product Bundling

Occurs when two or more goods are offered to a customer at a single price.

Product Idea

Is an idea for a possible market offering that the company can see itself introducing successfully to the market.

Product-Life Cycle

Four distinct but not wholly-predictable stages every product goes through from its introduction to withdrawal from the market: (1) introduction, (2) growth in sales revenue, (3) maturity, during which sales revenue stabilizes, and (4) decline, when sales revenue starts to fall and eventually vanishes or becomes too little to be viable.

Product Mix

The variety of lines that a company produces, or that a retailer stocks. Refers to the length, breadth, depth, and consistency of merchandise lines.

Product Opportunity

The need or desire for a good or service that does not yet exist, noticed by a company or individual.

Product Service Management

A marketing function involving developing, obtaining, maintaining, and improving a merchandise mix in response to market opportunities.

Advertising

Any paid non-personal promotion of ideas, goods, or services by an identified sponsor.

Advertising Layout

The design, size, color scheme, graphics, and text placement of a promotional element meant to send a message to a target audience.

Broadcast Media

Any visual or auditory form of communication used in promotion.

Copy

The selling message within the ad that expands on the headline or illustration.

Direct Marketing

Form of advertising that reaches its audience without using traditional or formal channels of advertising, such as TV, newspapers, or radio. Businesses communicate straight to the consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street advertising.

Federal Communications Commission

The government agency that oversees and monitors broadcast communications.

Headline

The saying that gets the reader's attention, arouses their interest, and leads them to read the rest of the ad. Are generally viewed as the most important part of an advertisement.

Illustration

The graphic or photography in the ad.

Media

A means to communicate; print, broadcast, or specialty media…. new trends are "social" in nature.

Personal Selling

A process of helping one or more prospects to purchase a good or service through the use of an person-to-person presentation.

Print Media

Any written form of communication used to inform, persuade, or remind consumers about products offered.

Promotion

Advancement of a product, idea, or point of view through publicity, advertising, sales promotion, or personal selling. The objective is to inform, persuade, and remind people about products.

Promotional Mix

A plan outlining the tools or tactics a company plans to use to accomplish their marketing objectives. It details where the majority of the marketing budget will be spent. It is one component of the marketing plan.

Public Relations

A marketing strategy focused on building and maintaining a positive image for high-profile people, commercial businesses and organizations, non-profit associations or programs.

Regulation

A principle or rule (with or without the coercive power of law) employed in controlling, directing, or managing an activity, organization, or system.

Sales Promotion

Any initiative undertaken by an organization to promote an increase in income, usage or trial of a product or service (i.e. initiatives that are not covered by the other elements of the marketing communications or promotions mix). Examples include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.

Social Responsibility

The idea a company has the obligation to act in a way that will benefit society.

Target Audience

Particular group of people, identified as the intended recipient of an advertisement or message.

Trade Show

Large, stage-set events organized often by an industry's associations on an annual basis. Most exhibitions aim to facilitate direct contact between the manufacturers and distribution channel members (wholesalers, retailers, value added re-sellers) but some are aimed at the end user.

Word of Mouth

Oral or written recommendation by a satisfied customer to the prospective customers of a good or service.

Active Listening

Term used to describe high level of perception capability and method, in which the sales person actively seeks to understand how the speaker feels, and what their issues are, in which the type of perception extends far beyond the common indifferent audience.

Approach

The first stage of the actual sales call (typically after preparation). Also known as opening or the introduction.

Buyer

Most commonly means a professional purchasing person in a business; can also mean a private consumer.

Buying Motives

The combination of facts and the emotional state of a person that generates a feeling within them that they need to purchase an item, as well as the factors that influence their eventual choice of a particular product.

Clientele

The repeat, loyal customers of a business.

Close

Point in the selling process when the sales-person encourages the prospect to say "yes", commit to the purchase, and/or sign the order.

Cold Canvassing

Calling on people who have not be referred or otherwise qualified to be a customer.

Customer Service

All interactions between a consumer and a product provider at the time of the sale, and thereafter.

Empathy

Exhibiting understanding of how another person feels, and typically reflecting this back to the other person. This ability is central to modern selling methods.

Ethical Selling

Elements of honesty, morality and social responsibility now crucial elements in any effective exchange, and for any sustainable business.