4.5 Glossary of key terms & Kahoot!

Form of promotion that refers to any form of paid-for promotional technique through independent consumer media.

A form of visual and/or audio marketing communication used to inform and persuade people to buy a certain good or service.

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.

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

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

A brand is the registered name used to identify a product of a particular business organization.

The degree of customer knowledge and recognition of a particular brand in order to gain more customers.

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

The degree of customer devotion to a particular brand.

This is the opposite of brand loyalty and occurs when consumers turn to alternative brands, mainly because the original brand has lost some of its former appeal.

The expected earning potential of a brand, i.e., the likely future earning potential (value) of a particular brand.

This is the practice of using an exclusive name (brand), symbol, or design which identifies a specific product or business.

This pricing method involves a business setting the price of its products at the same or similar level charged by competitors in the market.

These are products bought for personal consumption, rather than for business use, e.g., home appliances, furniture, food and drink, and house plants.

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.

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

Refers to the attentiveness and courtesy of employees towards meeting the needs of their customers in the delivery of a good or service.

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.

The use of postal correspondence for promotional purposes.

Refers to a business communicating information about its products straight to customers.

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.

Also known as a channel of distribution, this refers to the path taken for a product to get from the producer to the consumer.

This refers to charging customers different prices based on changing demand at different times of the day, week, month, or year.

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

These are brand names that become synonymous with the name of the product itself due to their popularity, e.g., AstroTurf, Band-Aid, Frisbee, Sellotape, and Yo-Yo.

These are highly recognized brands in overseas markets. Firms use a unified approach to their global brand strategy to increase its brand recognition as well as to support its brand awareness and brand development in new markets.

Refers to the unplanned or unintentional purchases of customers due to them being attractive by promotional campaigns (sales promotions).

Describes one of the purposes of promotion in the marketing mix, which is used to notify or tell customers about a firm’s products.

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.

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

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

A form of branding that uses a visual symbol to represent a business, brand, or product.

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

A form of distribution channel that enables customers to receive their goods via postal services.

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

The difference between the price and the cost per unit.

Refers to a retailer’s range of goods that are available for sale, often used for promotional purposes, e.g., Disney toys sold at their theme parks.

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

This refers to a firm’s use of a different distribution channels to get its products to customers.

This method of distribution involves the use of a single intermediary, such as an agent or retailers.

As part of “process” in the marketing mix, this refers to the different methods that customer can pay for the purchase of goods and services, e.g., cashless payment options.

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.

The use of sales personnel to sell goods and services with customers on a face-to-face basis.

Describes one of the purposes of promotion in the marketing mix, which is used to encourage or convince customers to make a purchase and to improve customer loyalty.

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

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

A pricing method that involves a firm charging significantly higher prices than similar or competing products in the market. This is usually due to the prestige or quality associated with the product or brand.

The value of a good or service that is paid by the customer.

PED measures the extent to which the demand for a good or service is responsive to changes in the price of that product.

A strategy of following the price set by the dominant firm in the industry (the firm with the largest market share).

The process of rival businesses competing by continually reducing prices so as to threaten the competitiveness of rivals in the market.

This refers to the various ways a business can set a price for its goods and services. The price of a good or service is paid by customers.

This refers to the ways in which a service is provided or delivered, such as various payment systems, queuing systems, after-sales care, and delivery service options.

These are products purchased by a business for its commercial use, rather than for private consumption, e.g., machinery, equipment, tools, fixtures and fittings, and office stationery.

This refers to both physical (goods) and non-physical (services) items sold by a business or purchased by a customer.

This refers to marketing strategies used to make a product distinct from its rivals, e.g., branding, product features, and packaging.

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.

The range and mix of products sold by a business, including the various brands of all the products it owns.

The various marketing processes used to inform customers about a product and persuading them to purchase the product.

The range of above and below the line methods used to promote a product as part of a larger marketing mix.

This is a trial product, used during the pre-launch stage of the product life cycle, to evaluate the potential commercial success of the product.

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

These are commercial businesses that sell a manufacturer’s products directly to consumers.

A short-term promotional tactic used to entice customers to buy a certain product.

Intangible products or non-physical products offered by a business, e.g., education, entertainment, healthcare, as well as travel and tourism.

These are corporate catchphrases used as a marketing strategy to signify the or represent a brand, product, or business in a favourable and memorable way.

The use of online content that users can upload and share to a website using a suitable medium platform, e.g., Facebook, Google. Instagram, Twitter, and YouTube.

This refers to the use of Internet-based websites, platforms and apps to share online content by building online communities.

A promotional strategy that involves a business providing financial support to another organization or event in return for marketing exposure.

A direct promotional marketing strategy that involves salespeople using the telephone to call existing and potential customers about a firm’s latest product offerings.

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.

This type of distribution channel uses three intermediaries. It often involves an agent who sells the goods to wholesalers on behalf of the producer. In turn, wholesalers sell to retailers.

TTL refers to the promotional strategies that involve both above the line (ATL) and below the line (BTL) promotional methods. It enables customers to engage with the product and/or brand in different ways.

Also known as trade fairs, these are promotional events where firms exhibit and sell their goods and services to potential customers in attendance.

A form of legal protection for the intellectual property (IP) of a business by giving the owner of the IP to have exclusive use of the brand name.

This method of distribution involves the use of two intermediaries, usually wholesalers and retailers.

These are intermediaries that buy products from a manufacturer and sell these in smaller quantities to retailers.

Also known as direct distribution, this method does not use any intermediaries, i.e., the producer sells directly to the consumer.