Marketing Terms

Abridged Glossary

A

Acculturation

The process by which people in one culture or subculture learn to understand and adapt to the norms, values, life styles and behaviorsbehaviour of people in another culture or subcultures.

Acquisition value

The users’ perception of the relative worth of a product or service to them. Formally defined as the subjectively weighted difference between the most a buyer would be willing to pay for the product or service, less the actual price of the item.

Activities, Interests, and Opinions (AIO)

A measurable series of psychographic (as opposed to demographic) variables involving the interests and beliefs of users.

Advertising

The placement and purchase of announcements and persuasive messages in time or space in any of the mass media by business firms, non-profit organizations.

Aggregation

A concept of market segmentation that assumes that most consumers are alike.

Aging

The length of time merchandise has been in stock. ds.

All-you-can-afford Budgeting

An approach to the advertising budget that establishes the amount to be spent on advertising as the funds remaining after all other necessary expenditures and investments are covered.

Ambiance

An overall feeling or mood projected by a store through its aesthetic appeal to human senses.

Analysis

In marketing and other social science disciplines, a variety of statistical and non-statiscal methods are used to analyse data, instead of sheer intuition, or simple descriptive statistics (Wood and Koontz).

Attitudes

Enduring systems of positive or negative evaluations, emotional feelings, and action tendencies with respect to an object. Consumer’s overall liking or preference for an object. (Assael)

Atmospherics

The physical characteristics of the organisation. These characteristics serve as stimuli and attention attractors of comsumers to the organisation.

Audience

The number and/or characteristics of the persons or households who are exposed to a particular type of advertising media or media vehicle. In a library this could be a certain number of people that attend a library program.

Audit

The process of reviewing the library’s strengths and weaknesses (internally), and opportunities and threats (externally) to shed light on the agency’s performance.

B

Brand

A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers.

C

Channel of Distribution

An organized network of agencies and institutions which in combination perform all the functions required to link producers with end customers to accomplish the marketing task.

Circulation

The number of copies of a print advertising medium that are distributed.

Classic Merchandise

The merchandise that is not influenced by style changes for which a demand virtually always exists.

Clustering

A statistical method of forming natural groupings in which a number of important characteristics of a large diverse group are identified in order to define target markets.

Copyright

A copyright offers the owner of original work that can be printed, recorded or “fixed” in any manner the sole right to reproduce and distribute the work, to display or perform it and to authorize other to do so., during the author’s lifetime and for fifty years thereafter.

Core product

The central benefit or purpose for which a consumer buys a product or service. The core product varies from purchaser to purchaser.

Correlation analysis

A statistical technique used to measure the closeness of the linear relationship between two or more intervally scaled variables.

Culture

The set of learned values, norms, and behaviors that are shared by a society and are designed to increase the probability of the society’s survival. These include shared superstitions, myths, folkways, mores and behavior patterns that are rewarded or punished.

Customer

The actual or prospective purchaser of products or services.

D

Database

A compendium of information on current and prospective users that usually includes demographic data as well as use data, volume and content.

Delphi technique

A frequently used method in futures research to gain consensus opinion among experts about likely future events, through a series of questionnaires.

Demand

The number of units of a product sold in a market over a period of time..

Demographics

Objective characteristics of consumers such as age, income, education, sex or occupation (Assael.)

Descriptive Research

A research design in which the major emphasis is on determining the frequency with which something occurs.

Diffusion Model

A model representing the contagion or spread of something through a population.

Diffusion of Innovation

The spread of innovation with a market group in stages–innovators (2- 5%), early adopters (10-15%), early majority (next 35%), late majority (next 35%), and laggards (final 5-10 %.) Fair amount of disagreement about the percentages.

Direct marketing

Marketing efforts, in total directed toward a specific targeted group–direct selling, direct mail, catalogue or cable–for soliciting a response from customer.

Display

A special exhibit of a product or service at the point of sale, generally over and above standard shelf stocking.

Distribution

The marketing and carrying of products to customers.

Diversification (Wood)

Extends skills or experience from current product or market activities rather than covering totally unfamiliar territory. Customized online searches by reference librarians would extend their current research in print skills.

Dummy

Preliminary layout for an ad, or other print material.

E

eMarketing

The process of reducing the demand for a product–or decreasing consumption.

Eighty-twenty principle

The situation in which a disproportionately small number (e.g., 20%) of staff, products or users generate a disproportionately large amount (e.g., 80%) of a firm’s use/profits. A use analysis should be conducted to determine what the cause is.

Elasticity

The degree that an economic variable changes in response to a change in another economic variable.

Environment, external

The complex set of physical and social stimuli in the external world of consumers.

Environmental Analysis

Gathering data regarding political, cultural, social, demographic, economic, legal, international and ecological forces, identifying trends affecting the organisation.

Environmental Monitoring

Keeping track of changes in the environment.

Erratic Demand

A pattern of demand for a product that is varied and unpredictable.

Evoked set

A set of alternatives that are activated directly from memory–certain brands considered during the buying process.

Exchange

All activities associated with receiving something from someone by giving something voluntarily in return. This is the heart of the marketing process.

Exhibit

The gathering and displaying of products, people, or information at a central location for viewing by a diverse audience.

Experience Survey

A series of interviews with people knowledgeable about the general subject being investigated.

Exploratory Research

A research design in which the major emphasis is on gaining ideas and insights.

External Data

Data that originate outside the organization for which research is being done.

F

Factor Analysis

A body of statistical techniques concerned with study of interrelationships among a certain set of variables–none of which is given the special status of a criterion variable.

Feature story

A type of publicity material that can be used by the media at their convenience because it is not time-related.

Fill Rate

An inventory’s availability goal used when setting customer service objectives.

Focus Group

A method of gathering quantitative data on the preferences and beliefs of consumers through group interaction and discussion usually focused on a specific topic or product.

Forecasting models

In forecasting sales or other objectives, a variety of statistical models are used and available, offering insights otherwise difficult to obtain.

G

Galley proof

A copy of the individual pages of an ad, brochure, poster or other printed material used for final proofreading of the text before final negatives are made for the printing process.

Gatekeeper

Usually the individual who controls the flow of information from the mass media to the group or individual.

Goals

A concrete point of measurement that an organisation intends to meet to achieve objectives.

Goods

A product that has tangible form in contrast to services that are intangible.

Gravity Model

A theory about the structure of market areas. It is a model of spatial mobility.

Growth state of product life cycle

Second stage during which sales/use are increasing.

H

Habit

A learned response to a stimulus that has become automatic and routine, requiring little or no cognitive effort.

Halo effect

A problem that arises in data collection when there is carry over from one judgement to another.

I

Image

The sum of beliefs, ideas and impressions that a person has of an object or agency. (Assael). For example, the library holds an image of prestige for some communities.

Industrialized Country

Characteristics: 1) degree of urbanization increases, literacy levels are high, exceeding 85%, population engaged in agriculture drops substantially; 2) wage levels rise sharply and ownership of durables; 3) need for labour saving methods creates new industries.

K

Key Success Factors

The factors that are a necessary condition for success in a given market.

Knowledge

Consumers’ meanings or beliefs about products, brands, stores, that are stored in memory.

L

Life Style

The manner in which people conduct their lives, including their activities, opinions, and interests (AIO).

Literature Search

A search of statistics, trade journal articles and other media for data or insight into the problems at hand.

Low Income Countries

Countries with the lowest income per capita compared with the rest of the world. The bottom quartile is often considered low income.

M

Macro Environment

The conditions facing an organisation including demographic economic, natural, technological, political, and cultural forces.

Market

The set of actual or potential users/customers. (Kotler)

Market Area

A geographical area containing the customers/users of a particular firm/library for specific goods or services.

Market Demand

The total volume of a product or service bought/used by a specific group of customers/users in a specified market area during a specified period.

Market Development

Expanding the total market served by 1) entering new segments, 2) converting nonusers, 3) increasing use by present users.

Market Positioning

Positioning refers to the user’s perceptions of the place a product or brand occupies in a market segment.

Market Profile

Positioning refers to the user’s perceptions of the place a product or brand occupies in a market segment.

Market Research

The systematic gathering, recording and analysing of data with respect to a particular market, where market refers to a specific user group in a specific geographic area.

Market Segmentation

The process of subdividing a market into distinct subsets of users that behave in the same way or have similar needs. Segments for the library could be demographic (Asian); geographic (branch-level); psychographics (leisure-oriented); customer size (largest user group area); benefits (have children in the home learning to read.)

Market Share

A proportion of the total sales/use in a market obtained by a given facility or chain.

Marketing

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

Marketing Channel

Steps used in moving the goods from the manufacturer to the end-user.

Marketing Mix

The mix of controllable variables that the organisation uses to reach desired use/sales level in target market, including price, product, place and promotion- 4 P’s.

Marketing Opportunity

An attractive arena of relevant marketing action in which a particular organisation is likely to enjoy a superior and competitive advantage. (Kotler)

Marketing Plan

A document composed of an analysis of the current marketing situation, opportunities and threats, analysis, marketing objectives, marketing strategy, action programs, and projected income statement

Maturity stage of Product Life Cycle (PLC)

Initial rapid growth is over and use/sales are levelling off.

Micro Environment

The set of forces close to an organization that have direct impact on its ability to serve its customers, including channel member organisations, competitors, user markets, publics and the capabilities of the organisation.

Mission Statement

An expression of an organisation’s managerial preferences, environmental concerns, resources, and competencies. It is used to guide the organsiation’s decision making process, answering questions such as “what is our business”? “who do we serve”? etc.

The cultural norms that specify behaviour of vital importance to society and embody its basic moral values.

Motivation

The positive or negative needs, goals, desires and forces that impel an individual toward or away from certain actions, activities, objects or conditions. The inner needs and wants of an individual–what affects behaviour?

Multiple Purpose Trip

A key concept in central place theory that argues consumers prefer to visit more than one store per trip, generating positive externalities for neighbouring stores.

N

A brief digest of important or noteworthy information. A method of reaching various publics quickly.

Nominal Scale

A measurement scale in which numbers are assigned to attributes of objects or classes of objects solely for the purpose of identifying the objects.

Nonprobability Sample

A sample that relies on personal judgment somewhere in the element selection process.

Non-profit Marketing

The marketing of a product or service in which the offer itself is not intended to make a monetary profit for the marketer.

Norms

Norms are rules for behaviour which prescribe, allow or prohibit certain behaviour in a group.

O

Objectives

The desired or needed result to be achieved by a specific time. An objective is broader than a goal, and one objective can be broken down into a number of specific goals.

Observation

A method of data collection in which the situation of interest is watched and the relevant facts, actions and behaviors are recorded.

Opinion

A belief or emotionally neutral cognition the individual holds about some aspect or object in the environment.

Output Evaluation

An objective measure of use performance.

P

Penetrated Market

Actual set of users actually consuming the product/service. (Kotler)

Perception

Perception is the cognitive impression that is formed of “reality” which in turn influences the individual’s actions and behavior toward that object.

Personal Interview

A direct, face-to face conversation between a representative of the research organization (the interviewer) and a respondent or interviewee.

Personality

Consistent pattern of responses to the stimuli from both internal and external sources.

Physical Inventory

An inventory determined by actual count and evidenced by a listing of quantity, weight, or measure.

Place

In the channels of distribution, the physical facilities point of location.

Population

The totality of cases that conforms to some designated specifications.

Potential Market

Set of users who profess some level of interest in a designed market offer. (Kotler)

Poverty Level

The poverty level is based solely on money income and updated every year to reflect changes in the consumer price index, used to classify families as being above or below the poverty level.

Press Conference

A convening of media by a person or organisation to explain, announce or expand on a particular subject.

Price

The formal ratio that indicates the quantities of money goods or services needed to acquire a given quantity of goods or services.

Private Sector

Activities outside the public sector that are independent of government control, usually, but not always carried on for a profit.

Product

A bundle of attributes or features, functions, benefits and uses capable of exchange, usually in tangible or intangible forms.

Product Life Cycle (PLC)

The four stages products go through from birth to death, namely: introductory, growth, maturity, and decline.

Product Mix

The full set of products offered by an organization.

Product Positioning

The way users/consumers view competitive brands or types of products. This can be manipulated by the organization.

Promotion Mix

The various communication techniques such as advertising, personal selling, sales promotion, and public relations/ product publicity available to the marketer to achieve specific goals.

Psychographic Analysis

A technique that investigates how people live, what interests them, what they like–also called lifestyle analysis or AIO because it relies on a number of statements about a person’s activities, interests and opinions.

Psychographic Segmentation

Dividing markets into segments on the basis of consumer life styles.

Public opinion

The consensus view of a population on a topic.

Public Relations (PR)

The form of communication management that seeks to make use of publicity and other nonpaid forms of promotion and information to influence feelings, opinions or beliefs about the agency/library and its offerings. This is a traditional form of communication for library management, as paid advertising media is rarely used.

Public Sector

Those marketing activities that are a carried out by government agencies for public service rather than for profit.

Public Service Announcement (PSA)

An advertisement or commercial that is carried by an advertising vehicle at no cost as a public service to its readers, viewers, or listeners.

Publics

The groups of people that have an actual or possible interest in or impact on the company’s efforts to achieve its goals.

Q

Quality control

An ongoing analysis of operations, to verify goods or service meet specified standards, or to better answer customer/user complaints.

Quality of Life

Sometimes measured by income, wealth, safety, recreation and education facilities, education health, aesthetics, leisure time and the like.

Quantity Discount

A reduction in price for volume purchases.

Questionnaire

A document that is used to guide what questions are to be asked respondents and in what order, sometimes lists the alternative responses that are acceptable. An excellent research instrument for libraries to assess customer satisfaction on exit interviews.

R

Range

The maximum distance a consumer is ordinarily willing to travel for a good or service; as such it determines the outer limit of an organisation’s market area.

Reach

The number of people or households exposed to a particular advertising media or media schedule during a specified time.

Reference Group

A group that the individual tends to use as the anchor point for evaluating his/her own beliefs and attitudes. Teenagers influence their peers regarding library use.

Regression Analysis

A statistical technique to derive an equation that relates a single, continuous criterion variable to one or more continuous predictor variables.

Reilly’s Law

A model used in trade area analysis to define the relative ability of two cities to attract users from the area between them.

Reindustrialized Country

Characteristics: 1) Low literacy rates and high percentage of employment in agriculture; 2) low population density and low degree of urbanization; 3) linguistic heterogeneity and a small percentage of working age population; 4) industrial sectors non-existent and undeveloped; 5) heavy reliance on foreign sources for all manufacturers and principal engagement in agricultural endeavours.

Respondent

A person who is asked for information using either written or verbal questioning, typically employing a questionnaire to guide the questioning.

Roles

The behavior that is expected of people in standard situations.

Rural Population

The part of the total population not classified as urban.

S

Sample

The selection of a subset of elements from a larger group of objects.

Sample Survey

A cross sectional study in which the sample is selected to be representative of the target population and in which the emphasis is on the generation of summary statistics such as averages and percentages.

Secondary Shopping District

A cluster of stores outside the central business district that serves a large population within a section or part of a large city.

Segmentation

(See market segmentation)

Self-Concept

The ideas, attitudes, and perceptions people have about themselves.

Self Service

The type of operation in which the customer/user is exposed to merchandise (browsing and self-selection) without assistance, unless customer/user seeks assistance.

Selling orientation (Wood)

A company-centred rather than a client-centred approach to conduct of business. This orientation tends to ignore what the customer/user really wants and needs.

Service(s)

Products such as a bank loan or home security or library loans, that are intangible or at least substantially so.

Shopping Good

Goods and products can be classified as convenience, shopping or specialty. A shopping good is one that more time is spent selecting (browsing) than a quick convenience good. Example, a certain type of mystery book.

Situation Analysis (SWOT)

An examination of the internal factors of an organisation to identify strengths and weaknesses, and the external environment to identify opportunities and threats.

Slogan

The verbal or written portion of an advertising message that summarizes the main idea in a few memorable words–a tag line.

Social Advertising

The advertising designed to education or motivate target audiences to undertake socially desirable actions.

Social Class

A status hierarchy by which groups and individuals are classified on the basis of esteem and prestige.

Social Indicator

The data and information that facilitate the evaluation of how well a society or institution is doing.

Specialty Advertising

The placement of advertising messages on a wide variety of items of interest to the target markets such as calendars, coffee cups, pens, hats, note paper, t-shirts, etc.

Specialty Good

A specialty good is one that users/consumers will spend more time searching for and time travelling to and pay higher for.

Stakeholder

One of a group of publics with which a company must be concerned. Example, employees, shareholders, consumers, suppliers, etc.

Strategic Market Planning

The planning process that yields decisions in how a business unit can best compete in the markets it elects to serve. The strategic plan is based upon the totality of the marketing process.

Subculture

The segments within a culture that share distinguishing meanings, values, and patterns of behaviour that differ from those of the overall culture.

Subliminal Perception

A psychological view that suggests that attitudes and behaviors can be changed by stimuli that are not consciously perceived.

T

Target Market

The particular segment of a total population on which the retailer focuses its merchandising expertise to satisfy that submarket in order to accomplish its profit objectives.

Target Market Identification

The process of using income, demographic, and life style characteristics of a market and census information for small areas to identify the most favorable locations.

Technology

The purposeful application of scientific knowledge; an environmental force that consists of inventions and innovations from applied scientific and engineering research.

Telephone Interview

A telephone conversation between a representative of the research organization, the interviewer, and a respondent or interviewee.

Thumbnail

A rough sketch for a layout for a piece of print advertising.

Transportation

A marketing function that adds time and place utility to the product by moving it from where it is made to where it is purchased and used. It includes all intermediate steps in the process.

U

Unit Control

The control of stock in terms of merchandise units rather than in terms of price value.

Utility

The state or quality of being useful.

V

VALS (values and lifestyles)

An acronym standing for values and life styles. VALS is a psychographic segmentation approach developed at Stanford Research Institute International.

Value

The power of any good to command other goods in peaceful and voluntary exchange.

Values

The beliefs about the important life goals that consumers are trying to achieve. The important enduring ideals or beliefs that guide behaviour within a culture or for a specific person.

Variety

The number of different classifications of goods carried in a particular merchandising unit.

Vicarious Learning

The changes in an individual’s behaviour brought about by observing the actions of others and the consequences of those actions.

Vision

A guiding theme that articulates the nature of the business/library and its intentions for the future, based upon how management believes the environment will unfold. A vision is informed, share, competitive and enabling.