Important Marketing Terms for SBI Exam
There are some important glossary terms used by marketers, usually at the management level, when preparing marketing plans and pitching for business. Some of these are explained here..
Anti-competitive practice: A practice is considered anti-competitive if it prevents, distorts or restricts competition in a market for goods and services in Barbados.
Advertising: Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinforcement of "brand image" and "brand loyalty". For these purposes, advertisements sometimes embed their persuasive message with factual information.
Barter: A Trade Exchange or Barter is a type of trade in which goods or services are directly exchanged for other goods and/or services, without the use of money. It can be bilateral or multilateral, and usually exists parallel to monetary systems in most developed countries, though to a very limited extent. Barter usually replaces money as the method of exchange in times of monetary crisis, when the currency is unstable and devalued by hyperinflation.
Branding: It is a promise, a pledge of quality. It is the essence of a product, including why it is great, and how it is better than all competition products. It is an image. It is a combination of words and letters, symbols, and colors.
Conglomerate: A conglomerate is the term used to describe a large company that consists of seemingly unrelated business sections. This term may also be referred to as a multi-industry company.
Circulation: The total number of copies distributed by a newspaper or magazine.
Classifieds: An advertisement in a newspaper that is placed along with advertisements for similar events under a classified heading, e.g. 'Entertainment' or 'Cinema'.
Concept: A design in which all aspects of the product are linked to a central idea, function or theory, etc.
Copy: Written or typed matter intended to be reproduced in print.
Copyright: The exclusive right, granted by law for a certain term of years, to make and dispose of copies of, and otherwise to control, a literary, musical, dramatic, or artistic work.
Critical Path: Plots the events that need to occur to complete a project on a timeline.
CRM: Customer Relationship Marketing. Building loyalty through your relationship with a customer.
Database: A large volume of information stored in a computer and organised in categories to facilitate retrieval.
Direct Mail: Mailing brochures, letters, questionnaires etc. directly to the target market.
Direct Marketing: Marketing to the customer without the use of an intermediary.
Types of Direct marketing:
There are many types of direct marketing, only some important types are listed below and these are the most form of direct marketing.
i)Direct Mail Marketing: Advertising material sent directly to home and business addresses. This is the most common form of direct marketing.
ii)Telemarketing: It is the second most common form of direct marketing, in which marketers contact consumers by phone.
ii)Email Marketing: This type of marketing targets customers through their email accounts
Display Ad: An advertisement which is usually designed by the advertiser and displayed in a box.
Direct Response: In advertising. Advertising designed to trigger a behavioural response in target audiences, e.g. placing mail back coupons in the ad, asking people to bring in or mention an ad, setting up a phone number and asking individuals to call for further information etc.
Digital Marketing: Digital Marketing is the practice of promoting products and services using all forms of digital advertising. It includes Television, Radio, Internet, mobile and any other form of digital media.
Distress Rates: Cheaper rates for advertising at short notice, i.e. When newspapers have spaces to fill shortly before their deadlines.
Distribution: To place promotional material, e.g. fliers or posters, throughout areas where they will be picked up.
Drip Marketing: Method of sending promotional items to clients is called Drip marketing.
Dumping: If a company exports a product at a price (export price) lower than the price it normally charges on its own home market (normal value), it is said to be 'dumping' the product. Dumping can harm the domestic industry by reducing its sales volume and market shares, as well as its sales prices. This in turn can result in decline in profitability, job losses and, in the worst case, in the domestic industry going out of business. Often, dumping is mistaken and simplified to mean cheap or low priced imports. However, it is a misunderstanding of the term. On the other hand, dumping, in its legal sense, means export of goods by a country to another country at a price lower than its normal value. Thus, dumping implies low priced imports only in the relative sense (relative to the normal value), and not in absolute sense.
Freepost: Used to encourage a response by mail. The sender does not pay to return an item by post e.g. a questionnaire.
Guerilla Marketing: Unconventional marketing intended to get maximum results from minimal resources is nothing but Guerilla Marketing.
JIT: Just-in-time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated carrying costs. In order to achieve JIT the process must have signals of what is going on elsewhere within the process.
Incentive: Something of financial or symbolic value added to an offer to encourage some overt behavioural response.
Indirect Marketing: Indirect Marketing is the distribution of a particular product through a channel that includes one or more resellers.
Difference b/w Direct and Indirect Marketing:
· Direct marketing is basically advertising your own products or services.
· In the same way you might advertise for someone else is called Indirect marketing, is an increasingly popular way of doing business
Internet Marketing: Internet marketing is the marketing of products or services over the Internet.
Internet Marketing is also known as i-marketing, web-marketing, online-marketing, Search Engine Marketing (SEM) or e-Marketing
Key Selling Points: The components of a program or event that will appeal to the greatest number of people.
Loyalty Programs: A component of relationship marketing. Programs designed to increase the strength of a consumer's preference for a particular entity. The most common form of loyalty program in the arts is subscription or membership programs.
Marketing: The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, and people to create exchanges that will satisfy individual and organizational goals.
Marketing Mix: The blend of product, place, promotion, and pricing strategies designed to produce satisfying exchanges with a target market.
Market Research: The process of planning, collecting, and analyzing data relevant to marketing decision-making. Using a combination of primary and secondary research tools to better understand a situation.
Marketing Strategy: The first stage is setting marketing objectives (where the organisation wants to be at the end of the strategic planning period) and goals (the objectives with specific numerical benchmarks and deadlines attached to allow management to measure achievement). The second stage is specifying the core marketing strategy, i.e. specific target markets, competitive positioning and key elements of the marketing mix. The third is the implementation of tactics to achieve the core strategy.
Mergers and Acquisitions: The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity. A merger is a tool used by companies for the purpose of expanding their operations often aiming at an increase of their long term profitability. An acquisition, also known as a takeover, is the buying of one company (the ‘target’) by another.
Media Hooks: Aspects of an event or program that are most likely to appeal to a journalist or the media generally.
Media Monitoring: Systematic monitoring of the media in order to ascertain what has been said. Specialised agencies provide this service.
Offer: A proposal by a marketer to make available to a target customer a desirable set of positive consequences if the customer undertakes the required action.
Pitch: A proposal - either verbal or written - to enlist the engagement or support of a third party.
Psychographics: Life-style measures which combine psychological and demographic measurements based on consumers' activities, aspirations, values, interests or opinions.
Publicity: Definitions vary but in Sauce the term is used to describe obtaining media coverage.
Personal Selling: Persuasive communication between a representative of the company and one or more prospective customers, designed to influence the person's or group's purchase decision.
Qualitative Research: Research that seeks out people's attitudes and preferences, usually conducted through unstructured interviews or focus groups.
Quantitative Research: Research that measures (quantifies) responses to a structured questionnaire, conducted either through telephone, face-to-face structured interviews, on the Internet or through self completion surveys.
Quickcuts: The brand name of technology which enables design companies or advertising agencies to transmit advertisements directly to the publication over a telephone line.
Reach: The total number of people your organisation or campaign reaches.
Relationship marketing: Marketing with a focus on building long-term relationships where the target customer is encouraged to continue his or her involvement with the marketer.
Strategic Marketing Planning: The process of managerial and operational activities required to create and sustain effective and efficient marketing strategies, including identifying and evaluating opportunities, analyzing markets and selecting target markets, developing a positioning strategy, preparing and executing the market plan, and controlling and evaluating results.
Situational Analysis: An analysis of the internal and external environment of a company or event.
SWOT Analysis: Identifying the strengths and weaknesses, which are internal to the organisation or project and the opportunities and threats, which come from outside the organisation.
Social Media Marketing: Social media marketing is marketing using online communities, social networks, blog marketing and more
Talent: The person or people you put forward to the media as possible subjects for an interview, a game show, a picture or footage, etc.
Target Audience: The section of the population that is identified as likely to be most interested in buying or being associated with a product.
Target media: The media you decide to target for coverage because they reach your target audience.
Targeting: The act of directing promotions to the target audience.
TARPS: Target audience rating points -- that is, the number of people or percentage of people reached in your target audience
Unique Selling Proposition (USP): The one thing that makes a product different than any other. It's the one reason marketers think consumers will buy the product even though it may seem no different from many others just like it.
Viral Marketing: Marketing by the word of the mouth, having a high pass-rate from person to person is called Viral marketing. Creating a 'buzz' in the industry is an example of viral marketing