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    tutor2u is the leading UK educational resource for Business, Economics, ICT and Politics.

    You can access a comprehensive range of free and subscription-based resources at the

    tutor2u website (http://www.tutor2u.net)

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    Term Description

    Above the line Above the Line is the term commonly used for advertising for which apayment is made and for which commission is paid to the advertisingagency. Methods of above the line advertising include television and

    radio, magazines, newspapers and Internet.

    ACORN ACORN stands for A Classification Of Residential Neighbourhoods.ACORN is a database which divides up the entire UK population in termsof the type of housing in which they live. This can be used for variouspurposes in marketing planning and in designing promotional campaigns

    Ad hoc marketresearch

    Ad-hoc research focuses on specific marketing problems. It involves thecollection of data at one point in time from one sample of respondents

    Added value Added value refers to the increase in worth of a product or service as aresult of a particular activity. In the context of marketing, the addedvalue is provided by features and benefits over and above thoserepresenting the core product.

    Advertising Advertising is any paid form of non-personal presentation and promotionof ideas, goods and services through mass media such as newspapers,magazines, television or radio by an identified sponsor.

    Advertising budget The total amount of money that a marketer allocates for advertisingover a period of time

    After-sales service The services received after the original goods or services have been paidfor. Often this service is provided as part of a warranty or guaranteescheme.

    Agent Part of the distribution channel. An agent is effectively a wholesaler

    who represents buyers and sellers on a relatively permanent basis,performs only a few functions and does not take title to goods

    Ambush marketing A deliberate attempt by a business or brand to associate itself with anevent (often a sporting event) in order to gain some of the benefitsassociated with being an official sponsor without incurring the costs ofsponsorship. For example by advertising during television coverage ofthe event.

    Ansoff matrix A model used in strategic marketing planning. The AnsoffProduct/Market matrix model links marketing strategy with the generalstrategic direction of a business. It maps four potential product-marketstrategies - e.g. market penetration, product development, marketdevelopment and diversification - on a matrix showing new versus

    existing products along one axis and new versus existing markets alongthe other.

    Augmented brand The additional customer services and benefits (added value) that arebuilt around the core product or service offering

    Available market The total group of customers who have an interest in a interest in aproduct or service, have access to it, and have the ability to buy it

    Awareness Advertising or other promotional activity (e.g. public relations) whoseprimary purpose is to increases general knowledge of the company, andto make people feel more positive towards it

    Behaviouralsegmentation

    Behavioural segmentation divides customers into groups based on theway they respond to, use or know of a product.

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    Below the line Below the line is a term commonly used to refer to non-mediaadvertising or promotion when no commission has been paid to theadvertising agency. This includes direct mail, point of sale displays, andother sales promotions.

    Benchmarking The process of comparing the products and services of a businessagainst those of competitors in a market, or leading businesses in other

    markets, in order to find ways of improving quality and performance

    Benefitsegmentation

    Benefit segmentation relates to the process of dividing a market basedon the specific benefits consumers seek from a product. For example,some car buyers want safety and security from their car, while otherslook for comfort or speed. A car manufacturer, therefore, has to decidewhich benefits to offer and how these benefits should becommunicated to the customer

    Boston GroupMatrix

    A means of analysing and categorizing the performance of business unitsin large diversified firms by reference to market share and growth rates.It was developed by the Boston Consultancy Group (BCG)

    Brand A brand is the specific type of the product form. A brand representedby a brand name, symbol, design, logo, packaging is the identity of aparticular product form that customers recognise as being differentfrom others.

    Brand building Developing a brand's image and standing with a view to creating longterm benefits for brand awareness and brand value

    Brand equity Brand equity refers to the value of a brand. Brand equity is based onthe extent to which the brand has high brand loyalty, name awareness,perceived quality and strong product associations. Brand equity alsoincludes other intangible assets such as patents, trademarks andchannel relationships.

    Brand extension Brand extension refers to the use of a successful brand name to launcha new or modified product in a new market. Virgin is perhaps the bestexample of how brand extension can be applied into quite diverse anddistinct markets.

    Brand image Brand image refers to the set of beliefs that customers hold about aparticular brand. These are important to develop well since a negativebrand image can be very difficult to shake off.

    Brand loyalty A strongly motivated and long standing decision to purchase a particularproduct or service

    Brand recognition A customer's awareness that a brand exists and is an alternative topurchase

    Breakeven Breakeven is achieved when total contribution is equal to total fixedcosts. Addition contribution earned after this point becomes profit

    Break-even pricing Setting a price to achieve break-even on the costs of making andmarketing a product (direct costs). Breakeven is achieved when thetotal contribution from sales priced in this way at least equal the fixedcosts of the business

    Build share A strategy based on the Boston Matrix. Here the company can invest toincrease market share (for example turning a "question mark" into astar)

    Business portfolio The business portfolio is the collection of businesses and products thatmake up the business.

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    Business tobusiness

    Marketing activity directed from one business to another (as opposed toa consumer). This term is often shortened to B2B

    Buying behaviour Buying behaviour concerns the process that buyers go through whendeciding whether or not to purchase goods or services. Buying behaviourcan be influenced by a variety of external factors and motivations,including marketing activity.

    Cash Cows A term used in the Boston Group Matrix. Cash cows are low-growthbusinesses or products with a relatively high market share. These aremature, successful businesses with relatively little need for investment.They need to be managed for continued profit - so that they continue togenerate the strong cash flows that the company needs for its Stars.

    Channel conflict Disagreement among members of a distribution channel about whoshould be paid what and what roles each should play. Channel conflictoften occurs when a business uses a multi-channel approach todistribution

    Cognitive

    dissonance

    Cognitive dissonance is an customer effect commonly observed after a

    major purchase whereby the customer feels uncertainty about whetherthe purchase should have been made. Post-purchase promotion(particularly advertising) has a role to play to reduce the incidence andeffect of cognitive dissonance

    Combination brand A combination brand name brings together a family brand name and anindividual brand name. The idea here is to provide some association forthe product with a strong family brand name but maintaining somedistinctiveness so that customers know what they are getting

    Competitiveadvantage

    A competitive advantage is a clear performance differential over thecompetition on factors that are important to customers

    Competitor

    benchmarking

    Competitor benchmarking compares customer satisfaction with the

    products, services and relationships of the business with those of keycompetitors

    Consumer buyers Consumer buyers are those who purchase items for their personalconsumption

    Consumer durables Consumer durables have low volume but high unit value. Consumerdurables are often further divided into White goods (e.g. fridge-freezers; cookers; dishwashers; microwaves) and Brown goods (e.g. DVDplayers; games consoles; personal computers)

    Consumer markets Consumer markets are the markets for products and services bought byindividuals for their own or family use

    Continuous marketresearch

    Continuous research involves interviewing the same sample of people,repeatedly

    Contribution Contribution per unit can be defined as selling price less variable costs.Overall contribution is the difference between total sales revenues andvariable costs

    Core product The set of problem-solving or need-meeting benefits that customers arebuying when they purchase a product. Customers are rarely prepared topay a premium for these elements of a product.

    Cost leadership A strategy of producing goods at a lower cost than the competition. Thisusually requires the business to enjoy higher economies of scale or have

    some kind of productivity advantage

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    Cross-selling Using a customers buying history to select them for related offers, e.g.a car alarm for new car buyers.

    Customer demand Consumer demand is a want for a specific product supported by anability and willingness to pay for it.

    Customer loyalty Feelings or attitudes that incline a customer either to return to a

    company, shop or outlet to purchase there again, or else to re-purchasea particular product, service or brand.

    Customer need A need is a basic requirement that an individual wishes to satisfy.

    Customersatisfaction

    The provision of goods or services which fulfil the customersexpectations in terms of quality and service, in relation to price paid

    Customer wants A want is a desire for a specific product or service to satisfy theunderlying need.

    Decline stage The last stage of a product's life cycle, during which sales fall rapidly

    Demographic

    segmentation

    Demographic segmentation consists of dividing the market into groups

    based on variables such as age, gender family size, income, occupation,education, religion, race and nationality

    Depth interview A lengthy, one-to-one structured interview, examining in detail aconsumer's views about a product

    Differentiation A marketing strategy aimed at ensuring that products and services havea unique element to allow them to stand out from the rest

    Direct mail The delivery of an advertising or promotional message to customers orpotential customers by mail.

    Direct marketing The planned recording, analysis and tracking of customer behaviour todevelop a relational marketing strategies

    Direct responseadvertising

    Direct response advertising is that which incorporates a contact methodsuch as a phone number, address and enquiry form, web site URL or e-mail address. This is done with the intention of encouraging therecipient to respond directly to the advertiser by requesting moreinformation, placing an order etc. The use of this technique ontelevision is commonly referred to as DRTV advertising

    Distributionchannel

    The network of organisations necessary to distribute goods or servicesfrom the manufacturers to the consumers; the distribution channeltherefore potentially consists of manufacturers, distributors,wholesalers, and retailers.

    Distributors Companies that buy and sell on their own account but tend to deal inthe goods of only certain specified manufacturers.

    Divest A strategy based on the Boston Matrix. Here the company can divest theSBU by phasing it out or selling it - in order to use the resourceselsewhere (e.g. investing in the more promising "question marks").

    Dogs A term used in the Boston Group Matrix. Unsurprisingly, the term "dogs"refers to businesses or products that have low relative share inunattractive, low-growth markets. Dogs may generate enough cash tobreak-even, but they are rarely, if ever, worth investing in.

    Early adopters People who choose new products carefully and are often consulted bypeople from the remaining adopter categories

    Early majority People who adopt products just prior to the average person

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    E-commerce The use of technologies such as the Internet, electronic data exchangeand industry extranets to streamline business transactions

    Endorsement The promotion of some kind of product recommendation or affirmation,usually from a celebrity, implying to the potential customer that aproduct is good

    Expansionisticpricing

    Expansionistic pricing is a more exaggerated form of penetration pricingand involves setting very low prices aimed at establishing mass markets,possibly at the expense of other suppliers. Under this strategy, theproduct enjoys a high price elasticity of demand so that the adoption ofa low price leads to significant increases in sales volumes

    Extinction pricing Extinction pricing has the overall objective of eliminating competition,and involves setting very low prices in the short term in order to under-cut competition, or alternatively repel potential new entrants.

    Family brand name A family brand name is used for all products. By building customer trustand loyalty to the family brand name, all products that use the brandcan benefit.

    Family life cycle The stages of family life based on demographic data that are useful indefining the markets for certain goods and services. Each group has itsown specific and distinguishable needs and interests.

    Fast-movingconsumer goods

    Fast-moving consumer goods are those that sell in high volumes, withlow unit value, and have fast consumer repurchase. Good examplesinclude ready meals, baked beans, newspapers etc

    Focus group A small group of sample customers who are brought together into agroup discussion to measure their response to a marketing stimulus suchas a new brand or product

    Forecasting The process of estimating future demand by anticipating what buyers

    are likely to do under a given set of marketing conditions (e.g.economic confidence, disposal income, pricing levels)

    Franchising The selling of a licence by the owner (franchisor) to a third party(franchisee) permitting the sale of a product or service for a specifiedperiod. In business format franchising the agreement will involve acommon brand and marketing format. Many service businesses areoperated under franchise include well-known brands such as BurgerKing, KFC and KwikPrint

    Full cost pricing Full cost plus pricing seeks to set a price that takes into account allrelevant costs of production

    Gender

    segmentation

    The segmentation of markets based on the sex of the customer. The

    cosmetic industry is a good example of widespread use of gendersegmentation

    Geographicsegmentation

    Geographic segmentation divides markets into different geographicalunits

    Going-rate pricing A pricing strategy that sets price largely based on the prices ofcompetitors

    Growth stage The stage at which a product's sales rise rapidly and profits reach apeak, before levelling off into maturity.

    Harvest A strategy based on the Boston Matrix. Here the company reduces theamount of investment in order to maximise the short-term cash flowsand profits from the SBU. This may have the effect of turning Stars into

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    Cash Cows.

    Hold A strategy based on the Boston Matrix. Here the company invests justenough to keep the SBU in its present position

    Impulse buying Behaviour that involves no conscious planning but results from apowerful, persistent urge to buy something immediately

    Income elasticity ofdemand

    Income elasticity of demand measures the relationship between achange in quantity demanded and a change in income

    Industrial buyers Industrial buyers are those who purchase items on behalf of theirbusiness or organisation

    Industrial market Industrial markets involve the sale of goods between businesses. Theseare goods that are not aimed directly at consumers.

    Inferior goods Inferior goods have a negative income elasticity of demand. Demandfalls as income rises

    Influencer A person in a group buying situation (e.g. a family) who exerts

    significant influence in the final buying decision

    Initiator A person in a group buying situation (e.g. a family) who first suggestsbuying a particular product or service

    Innovators Innovators are those who adopt new products first. They are usuallyrelatively young, lively, intelligent, socially and geographically mobile.They are often of a high socioeconomic group (ABs).

    Intensivedistribution

    Intensive distribution aims to provide saturation coverage of the marketby using all available outlets

    Internal marketing The process of eliciting support for a company and its activities amongits own employees, in order to encourage them to promote its goals.

    This process can happen at a number of levels, from increasingawareness of individual products or marketing campaigns, to explainingoverall business strategy.

    Introduction stage A product's first appearance in the marketplace, before any sales orprofits have been made

    Involvement The level of interest, emotion and activity which the consumer isprepared to expend on a particular purchase

    Labelling Packaging information that can be used for a variety of promotional,informational and legal purposes.

    Laggards The group of consumers who are typically last to buy a new product

    Late majority People who are quite sceptical about new products but eventually adoptthem because of economic necessity or social pressure

    Lifestyle Lifestyle is a persons pattern of living as expressed in his or heractivities, interests and opinions

    Lifestylesegmentation

    Lifestyle segmentation of a market is based on identifying lifestylecharacteristics of customers that enable target customer groups to beidentified. Many businesses now segment their markets by lifestyles, asthese are increasingly seen as good predictors of consumer behaviour.Most companies use off-the-shelf research-agency classifications (suchas the Target Group Index), because of the high cost and complexity ofdeveloping their own.

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    Logo A graphic, usually consisting of a symbol and/or group of letters thatidentifies a company or brand.

    Macro forecasting Macro forecasting is concerned with forecasting markets in total. This isabout determining the existing level of Market Demand and consideringwhat will happen to market demand in the future.

    Mail panels Groups of consumers selected to represent a market or market segmentwho agree to be regularly interviewed by mail

    Manufacturer brand Manufacturer brands are created by producers and bear their chosenbrand name. The producer is responsible for marketing the brand. Thebrand is owned by the producer. By building their brand names,manufacturers can gain widespread distribution (for example byretailers who want to sell the brand) and build customer

    Marker leader The business in a market with the largest market share. The marketleader, particularly one with a dominant market share, is oftenfollowed by competitors in terms of pricing and product strategy

    Market A market is the demand for a particular product or service, oftenmeasured by sales during a specified period.

    Market challenger A business in a market that is fighting hard to increase its market share

    Marketconcentration

    Market concentration is the proportion of market value that is owned bythe leading brands or products/companies in the market. Where themarket leaders own a large part of the overall market, the market issaid to be highly concentrated. By contrast, where the market leaderhas a relatively small market share and there are many othercompetitors, a market is said to be fragmented

    Marketdevelopment

    The process of growing sales by offering existing products (or newversions of them) to new customer groups (as opposed to simply

    attempting to increase the companys share of current markets).

    Market entry The launch of a new product into a new or existing market. A differentstrategy is required depending on whether the product is an early orlate entrant to the market; the first entrant usually has an automaticadvantage, while later entrants need to demonstrate that their productsare better, cheaper and so on.

    Market follower A firm that is happy to follow the leaders in a market place withoutchallenging them, perhaps taking advantages of opportunities createdby leaders without the need for much marketing investment of its own -see also 'market challenger' and 'market leader'

    Market positioning A marketing strategy that will position a business products and services

    against those of its competitors in the minds of consumers. To achievepositioning success it is suggested that there are four basic competitivestrategies that a company can follow (based on work by Porter):

    - Cost leadership - the company tries to achieve lowest costs ofproduction and distribution

    - Differentiation - making use of specific marketing mixes

    - Focus - paying attention to a few market segments

    The fourth strategy is a losing strategy in which a business pursues amiddle-of-the-road path. Businesses that try to be good at everythingare rarely particularly good at anything.

    Market research The systematic gathering, recording and analysing of data about

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    problems relating to the marketing of goods and services

    Market segment A customer group within the market that has special characteristicswhich are significant to marketing strategy

    Marketsegmentation

    Segmentation involves subdividing markets, channels or customers intogroups with different needs, to deliver tailored propositions which meet

    these needs as precisely as possible.

    Market share Market share can be defined as the percentage of all sales within amarket that is held by one brand / product or company.

    Market targeting Market targeting is the process of evaluating each market segment andselecting the most attractive segments to enter with a particularproduct or product line.

    Marketing The all-embracing function that links the business with customer needsand wants in order to get the right product to the right place at theright time

    Marketing audit A systematic examination of a businesss marketing environment,

    objectives, strategies, and activities with a view to identifying keystrategic issues, threats and opportunities.

    Marketing concept The marketing concept is about matching a business capabilities withcustomer wants.

    Marketingintelligence

    The composite of all data and ideas available within an organisationthat assists in decision-making.

    Marketing plan A detailed statement (usually prepared annually) of how a company'smarketing mix will be used to achieve its market objectives. Amarketing plan is usually prepared following a marketing audit.

    Maturity stage The stage during which a product's sales curve peaks and starts to

    decline, and profits continue to decline.

    Media analysis Media analysis is a term used in advertising. It refers to an investigationinto the relative effectiveness and the relative costs of using the variousadvertising media in an advertising campaign

    Micro forecasting Micro forecasting is concerned with detailed unit sales forecasts. This isabout determining a products market share in a particular industry andconsidering what will happen to that market share in the future

    Mission A mission describes the organisations basic function in society, in termsof the products and services it produces for its customers.

    Mission statement A mission statement is a formal description of the mission of a business.

    Multi-channelmarketing

    When a business distributes its products through more than onedistribution channel, this is known as multi-channel marketing. Retailchains, for example Argos, besides using the shops to distribute theirproducts, quite often also use catalogue selling. The main purpose ofmulti-channel marketing is to more effectively reach different customersegments

    Multi-segmentstrategy

    A strategy by which a business directs its marketing efforts towards twoor more market segments by developing a marketing mix for each

    New product A new product can be defined as a good, service or idea that isperceived by some potential customers as new. It may have been

    available for some time, but many potential customers have not yetadopted the product nor decided to become a regular user of the

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    product.

    Niche marketing Niche marketing refers to the exploitation of comparatively smallmarket segments by businesses that decide to concentrate their efforts.Niche segments exist in nearly all markets for example the self-buildsports car segment of the motor industry

    Non-personalcommunication

    Methods of promotion that do not generate any personal feedback.Advertising is the best example of this

    Normal goods Normal goods have a positive income elasticity of demand so as incomerise more is demand at each price level

    Objectives Measurable aims of a business set for a given period (e.g. marketingobjectives for the next year)

    Occasionsegmentation

    A basis of segmenting a market based on occasions when buyers get theidea to make a purchase, actually buy, or use a purchased item.

    Opportunities Opportunities are any feature of the external environment whichcreates conditions that a business can exploit to its advantage. If the

    business is successful in exploiting opportunities, then it will be betterplaced to achieve its objectives.

    Own-label brand Own-label brands are created and owned by businesses that operate inthe distribution channel often referred to as distributors. Oftenthese distributors are retailers, but not exclusively. Sometimes theretailers entire product range will be own-label. However, more often,the distributor will mix own-label and manufacturers brands

    Packaging The activities of designing and producing the container or wrapper for aproduct

    Penetration pricing Penetration pricing involves the setting of lower, rather than higherprices in order to achieve a large, if not dominant market share

    Penetrationstrategy

    A marketing strategy based on low prices and extensive advertising toincrease a product's market share. For penetration strategy to beeffective the market will have to be large enough for the seller to beable to sustain low profit margins.

    Personal selling Oral communication with potential buyers of a product with theintention of making a sale. The personal selling may focus initially ondeveloping a relationship with the potential buyer, but will alwaysultimately end with an attempt to "close the sale

    Porters FiveForces Model

    An analytic model developed by Michael E. Porter. The five forces interms of which the model analyses businesses and industries are:

    Buyers, Suppliers, Substitutes, New Entrants and Rivals

    Portfolio planning Portfolio planning is the process of managing groups of brands andproduct lines

    Positioning Positioning is how a product appears in relation to other products in themarket

    Pre-emptive pricing Pre-emptive pricing is a strategy involves setting low prices in order todiscourage or deter potential new entrants to the suppliers market. Itis especially suited to markets in which the supplier does not hold apatent, or other market privilege and entry to the market is relativelystraightforward.

    Prestige pricing Prestige pricing refers to the practice of setting a high price for anproduct, throughout its entire life cycle as opposed to the short term

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    opportunistic, high price of price skimming. This is done in order toevoke perceptions of quality and prestige with the product or service

    Price The price of a product may be seen as a financial expression of thevalue of that product

    Price discrimination Price discrimination occurs when a firm charges a different price to

    different groups of consumers for an identical good or service, forreasons not associated with costs

    Price elasticity ofdemand

    Price elasticity of demand measures the responsiveness of a change indemand for a product following a change in its own price

    Price sensitivity Price sensitivity is the effect a change in price will have on customers

    Price skimming Price skimming involves charging a relatively high price for a short timewhere a new, innovative, or much-improved product is launched onto amarket

    Primary researchdata

    Primary market data is data collected specifically for the marketresearch project and obtained directly from the relevant source

    Problem/Needrecognition

    The first stage in the buying process where the potential customerrecognises that a problem or a need can be met by buying a product ora service

    Product A product is defined as anything that is capable of satisfying customerneeds

    Product class Product class is a broad category of product such as cars, washingmachines, newspapers.

    Product form Within a product class, there are different forms that the product cantake. For example, people carriers or two-seater sports cars areproduct forms within the motor cars product class

    Product group A product group (or product line) is a group of brands that are closelyrelated in terms of their functions and the benefits they provide

    Product life cycle The course of a product's sales and profitability over its lifetime. Themodel describes five stages, each of which represents a differentopportunity for the marketer:

    - Development

    - Introduction

    - Growth

    - Maturity

    - Decline

    Product map A product map defines the market in terms of the way buyers perceivekey characteristics of competing products

    Product mix The set of all product lines and items that a particular business offersfor sale to buyers

    Product quality The ability of a product to perform its functions (fit for purpose).Quality is a function of several factors including reliability and ease ofuse

    Promotion One of the four Ps of the marketing mix. Promotion is all aboutbusinesses communicating with customers

    Promotional mix The promotional mix consists of a blend of five main kinds of

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    promotional tools: advertising; direct marketing; personal selling; salespromotion and public relations

    Psychographicsegmentation

    Psychographic (or lifestyle) segmentation seeks to classify peopleaccordingly to their values, opinions, personality characteristics andinterests.

    Public relations The planned and sustained effort to establish and maintain goodwill andmutual understanding between an organisation and its publics

    Publicity Promotional activities designed to promote a business and its productsby obtaining media coverage not paid for by the business

    Pull promotion Pull promotion, in contrast to Push promotion, addresses the customerdirectly with a view to getting them to demand the product, and hencepull it down through the distribution chain. It focuses on advertisingand above the line activities. See also 'push promotion'

    Purchase decision The stage in the customer buying process when the purchase decision isactually made

    Push promotion Push promotion relies on the next link in the distribution chain - e.g. awholesaler or retailer - to push out products to the customer. Itrevolves around sales promotions - such as price reductions and point ofsale displays - and other below the line activities. See also 'SalesPromotion'

    Qualitativeforecasting

    Qualitative forecasting is based on experience and judgement.Examples include general surveys of customers, distributors and thesales force

    QualitativeResearch

    Research that deals with information too difficult or expensive toquantify, such as subjective opinions and value judgements, typicallyunearthed during interviews or discussion groups

    Quantitativeforecasting

    Quantitative forecasting is based on facts. Good examples includetime-series analysis and statistical surveys of customer purchasingbehaviour

    QuantitativeResearch

    Market research that concentrates on statistics and other numericaldata, gathered through opinion polls, customer satisfaction surveys andso on. Compare 'qualitative research'

    Question marks A term used in the Boston Group Matrix. Question marks are businessesor products with low market share but which operate in higher growthmarkets. This suggests that they have potential, but may requiresubstantial investment in order to grow market share at the expense ofmore powerful competitors.

    Questionnaire Base document for research purposes, providing the questions andstructure for an interview or self-completion and providing space forrespondents' answers.

    Quota sampling A sampling method in which the final choice of respondents is left tothe interviewers, who base their choices on two or three variables (suchas age, sex and education).

    Random sampling A sampling method in which all the units in a population have an equalchance of appearing in the sample.

    Retailers Retailers operate outlets that trade directly with household customers

    Sales forecast The sales forecast is the expected level of company sales based on a

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    chosen marketing plan and an assumed marketing environment.

    Sales promotion Sales promotion refers to any activity designed to boost the sales of aproduct or service. It may include an advertising campaign, increasedPR activity, a free-sample campaign, offering free gifts or tradingstamps, arranging demonstrations or exhibitions, setting upcompetitions with attractive prizes, temporary price reductions, door-

    to-door calling, telephone-selling, personal letters on other methods.

    Sample A small group of items selected from a larger group to represent thecharacteristics of the larger group. Samples are often used in marketingresearch because it is not feasible to interview every member of aparticular market; however, conclusions about a market drawn from asample always contain a sampling error and must be used with caution.The larger the sample, in general, the more accurate will be theconclusions drawn from it

    Secondary researchdata

    Secondary market data is data that has already been obtained, analysedand used for other purposes or for general reference

    Segmentationvariables or bases

    The dimensions or characteristics of individuals, groups or businessesthat are used for dividing a total market into segments.

    Selectivedistribution

    Selective distribution involves a producer using a limited number ofoutlets in a geographical area to sell products

    Soft goods Soft goods are similar to consumer durables, except that they wear outmore quickly and therefore have a shorter replacement cycle.Examples include clothes and shoes.

    Sponsorship Supporting an event, activity or organisation by providing money orother resources that is of value to the sponsored event. This is usuallyin return for advertising space at the event or as part of the publicityfor the event.

    Stars A term used in the Boston Group Matrix. Stars are high growthbusinesses or products competing in markets where they are relativelystrong compared with the competition. Often they need heavyinvestment to sustain their growth. Eventually their growth will slowand, assuming they maintain their relative market share, will becomecash cows.

    Strapline A slogan often used in conjunction with a brand name, advertising andother promotional methods (e.g. Guinness is good for you)

    Strategic businessunit (SBU

    A SBU is a unit of the company that has a separate mission andobjectives and that can be planned independently from the otherbusinesses. An SBU can be a company division, a product line or even

    individual brands - it all depends on how the company is organised.

    Stratified sampling A sampling method in which the population of interest is dividedaccording to a common characteristic or attribute and a probabilitysampling is then conducted within each group

    Strengths Strengths are a particular skill, resource or distinctive competencewhich the business possesses and which will enable it to achieve itsstated objectives. Strengths are a source of competitive advantage. Assuch they should be protected and built upon.

    Target market The group of potential customers sharing common needs andcharacteristics that a business decides to serve

    Telemarketing Telemarketing (sometimes also referred to as telesales) is a method

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    of direct marketing in which the telephone is used to contact potentialcustomers in order to reduce the time spent in making personal visits.Traditionally, products such as double glazing and central heating havebeen marketed using this technique

    Telephone surveys Surveys in which respondents' answers to a questionnaire are recordedby interviewers on the phone

    Test marketing Test marketing occurs when a new product is tested with a sample ofcustomers, or launched in a restricted geographical area, to judgecustomers' reactions. If the product is unsuccessful, the business willhave minimised its costs and can either make changes before the mainlaunch or decide to discontinue the product. Test marketing has adisadvantage in that competitors learn about the new product before itsfull launch

    Threats Threats are any aspect of the external environment which causeproblems and which may prevent achievement of objectives. Almost bydefinition, what presents a threat to one business offers an opportunityto other businesses.

    Trademark Legal designation indicating that the owner has exclusive use of a brand

    Undifferentiatedmarketing

    Undifferentiated marketing is the marketing of a product aimed at thewidest possible market. For example, in the holiday market, the sale ofshort-haul summer-sun package holidays to the Mediterranean is anundifferentiated mass-market product.

    Unique sellingproposition

    A unique selling proposition (USP)is a customer benefit that no otherproduct can claim

    Vision The long-term aims and aspirations of the company for itself

    Weaknesses Weaknesses are any aspect of the business which may prevent the

    business from achieving its objectives. Weaknesses are a source ofcompetitive disadvantage. Management should seek ways to reduce oreliminate weaknesses before they are exploited further by thecompetition

    Wholesaler Often part of the distribution channel; involves the selling of goods inlarge quantities to be retailed by others