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Above the line promotion (ATL)

Form of promotion that refers to any form of paid

After-sales care

These are value-added services offered to customers subsequent to the sale of a product, e.g., guarantees and warranties, maintenance services, and technical support.

Agents

Also known as brokers, these independent intermediaries help to sell a vendor’s products in return for commission, e.g., real estate agents.

Below the line promotion (BTL)

Form of promotion that refers to all forms of advertising or promotion that do not use external media agents.

Brand development

Part of a firm’s marketing strategy in communicating the value of a brand and what the brand stands for.

Contribution pricing

A pricing method that involves setting the price of a product at a level higher than the direct costs. Hence, the sale of each product earn the firm a positive contribution towards paying its indirect costs.

Cost-plus pricing (or mark-up pricing)

Adds a profit margin to the costs of production, thereby ensuring that each unit sold contributes towards the profits of the firm.

Customer loyalty schemes

These are marketing strategies used to attract customers to remain devoted to a brand or business by offering rewards and other incentives for repeat purchases.

Reward systems used to encourage customers to make repurchases, such as price discounts or free gifts for members.

Distribution (place)

The marketing process of getting the right products to the right customers in the right place and at the right time, e.g., wholesalers, retailers, agents, e-commerce, and vending machines.

Extension strategies

Marketing approaches used to prolong or lengthen a product’s life cycle, e.g., price reductions or new promotional strategies.

Innovators

The name given to the group of consumers who are the first to own a certain product, usually due to the prestige associated with being first and/or customer loyalty to a particular brand or product.

Intermediary

A third-party person or business that offers distribution services as part of a channel of distribution, such as agents, wholesalers, and retailers.

Intermediation

The marketing process of using a middle person or distributor as channels of distribution between the producer and consumers.

Loss leader pricing

Pricing a product below its cost of production so as to attract customers to also buy other items (with a higher profit margin).

Marketing myopia

This exists when a business becomes complacent about its product strategy, thereby failing to keep up with market changes.

Multi-brand strategy

This marketing strategy involves a business developing more than one brand as part of its overall product strategy.

Penetration pricing

A pricing method that involves a firm setting low prices so as to gain entry in a new market. The firm will then raise the price once the product or brand has established itself in the industry.

Point of sale (POS)

The promotion of products in retail outlets where customers can buy the goods.

Predatory pricing

A strategy that involves charging a low price, sometimes even below the cost, so as to damage the sales of rivals.

Product life cycle (PLC)

Marketing theory showing the different stages that most products go through from their research and development (R&D) stage to their final removal from the market.

Public relations

The management function overseeing public attitudes and opinions of an organization to gain public understanding and support.

Test marketing

This is part of the pre-launch stage in a product’s life cycle, when a business trials a new product with a small number of customers, usually in a specific geographical location prior to the official launch.