Glossary of Marketing Terms
3GPP & 4GPP
3rd and 4th Generation Partnership Project. Current standard for mobile network technology.
National Readership Survey terms to define reading demographic groups i.e.: A = Upper middle class, higher managerial, administrative or professional.
The part of an email or web page that is visible without scrolling.
Above the line
Advertising for which a payment is made and for which commission is paid to the advertising agency.
Also see ‘Below the line’ and ‘Push versus pull promotion’.
A specialised type of interview in which respondents are interviewed while they shop in a retail store. The interview technique combines questioning and observations.
The process by which an agency or supplier manages the needs of a client.
A Classification Of Residential Neighbourhoods: a database which divides up the entire population of the UK in terms of the type of housing in which they live.
The increase in worth of a product or service as a result of a particular activity – in the context of marketing, the activity might be packaging or branding.
Five groups into which consumers can be placed according to the time it takes them to adopt a new product or service.
The five categories are:
• Innovators – Those who are first to adopt a new product or service.
• Early adopters – Those who adopt a new product or service after the innovators have already adopted it.
• Early majority – Those who adopt just before the ‘average’ person.
• Late majority – Those who eventually adopt through economic necessity or social pressure.
• Laggards – Those who are last to adopt a new product or service.
Asymmetric Digital Subscriber Line. Technology that allows data to be transmitted over copper pair telephone lines at up to 8 Mbps. The technology allows internet access and telephony services to be available simultaneously.
Promotion of a product, service, or message by an identified sponsor using paid-for media.
Advertising Cost Equivalent (ACE)
See ‘Advertising Value Equivalent’.
Advertising Space Equivalent (ASE)
See ‘Advertising Value Equivalent’.
Advertising Value Equivalent (AVE)
A commonly used PR measurement of the value of the space secured by PR executives had they bought that equivalent amount of space in advertising.
An advertisement which is designed to have the appearance of an editorial. Advertorials are normally labelled as “Advertising” or “This is an advertisement”. Similar in practice to an infomercial.
Advocacy advertising expresses a viewpoint on a given issue, often on behalf of an institution. Examples are to be found in anti-drink-driving campaigns.
Free software which includes pop-up banner advertisements which cannot be dismissed.
A form of marketing or advertising used on the internet. Companies that sell products or services online link to relevant sites. The advertising on the other or ‘affiliate’ sites is paid for according to results.
Marketing targeted at individuals sharing common interests that predispose them towards a product, e.g. an auto accessories manufacturer targeting motoring magazine readers. Also, a campaign jointly sponsored by a number of disparate organisations that are non-competitive but have a particular interest in common.
After sales service
Services received after the original goods or service have been paid for.
Attention, Interest, Desire, Action: a model describing the process that advertising or promotion is intended to initiate in the mind of a prospective customer.
Awareness, Interest, Understanding, Attitudes, Purchase, Repeat purchase: a buying decision model.
Alternate Reality Game (ARG)
A game based in the real world but which has a fictitious plot or an alternative reality. Unlike computer games, which are controlled by computer programs, it is actively controlled by its designers. An ARG usually involves a variety of media and may include the use of real locations. All websites, phone numbers, email addresses, characters, etc. in the game are “real” for game purposes and can be interacted with. An ARG does not require the players to assume fictional identities or to role play beyond accepting the alternative reality of the game for playing purposes.
Originally known as ‘fringe media’, ambient media are communications platforms that surround us in everyday life – from petrol pump advertising to advertising projected onto buildings to advertising on theatre tickets, cricket pitches or even pay slips.
Also see ‘Buzz’.
A deliberate attempt by an organisation to associate itself with an event (often a sporting event) in order to gain some of the benefits associated with being an official sponsor without incurring the costs of sponsorship. For example by advertising during broadcasts of the event.
Also see ‘Buzz’.
Analytical Hierarchy Process (AHP)
A mathematical decision making technique that allows consideration of both qualitative and quantitative aspects of decisions. It reduces complex decisions to a series of one-on-one comparisons, then synthesises the results.
Category management tool which relates market position to market strategy. It maps new versus existing products along one axis, and new versus existing markets along the other. Each quadrant of the matrix relates to a product-market strategy:
• Market penetration – existing product/service and an existing market
• Product development – new product/service and an existing market
• Market development – existing product/service and a new market
• Diversification – new product/service and a new market
Application Service Interface (ASP)
Internet hosting that provides computer-based services to customers over a network.
A1 dimensions 840mm x 594mm
A2 dimensions 594mm x 420mm
A3 dimensions 420mm x 297mm
A4 dimensions 297mm x 210mm
A5 dimensions 210mm x 148mm
A6 dimensions 148mm x 105mm
A7 dimensions 105mmx 74mm
Asset led marketing
Asset led marketing uses product strengths such as the name and brand image to market both new and existing products. Marketing decisions are based on the needs of the consumer AND the assets of the product.
The unethical or illegal practice of influencing or distorting word of mouth communication for commercial gain by posing as something or someone that you are not.
See ‘Word of Mouth’.
The view email software provides an individual to see without fully opening the message.
An animated or graphic character, cartoon or picture used to represent an individual in a game, chat room or website or your ideal client to help you target them appropriately.
Business to Employee.
A term to describe people born in the post WWII “baby boom”. Generally people born from the late 1940s to the early 1960s although dates do vary from one definition to another.
A technique allowing a company to monitor and manage performance against defined objectives. Measurements might typically cover financial performance, customer value, internal business process, innovation performance and employee performance.
Adverts on web pages used to build brand awareness or drive traffic to the advertisers own website.
The Broadcasters’ Audience Research Board Responsible for providing estimates of the number of people watching television. This includes the channels and programmes being watched, at what time, and the type of people who are watching.
An internet marketing term. Technology that targets users with advertisements based on previous browsing behaviour and patterns.
Below the line
Non-media advertising or promotion when no commission has been paid to the advertising agency. Includes direct mail, point of sale displays, giveaways.
Also see ‘Above the line’ and ‘Push versus pull promotion’.
Buy it – Don’t Do It Yourself – a demographic grouping.
The business opportunities that a company has formally targeted and organised itself to capture.
Compare with ‘White space’.
Usually an additional 2mm on the height and width of artwork to ensure even in the unlikely event that the printer’s guillotine is a fraction of a mm out when trimming up your printed materials, the colour continues a little further to ensure you don’t have an unplanned and irregular white border to your printed items.
An integrated programme with a blend of interactive online tuition, face-to-face classroom workshops, assignments and a learning log.
Emails that are blocked are not processed through the ISP or firewall and are essentially prevented from reaching their addressed destination.
Blog is a contraction of Web log. An internet publishing device allowing an individual or company to express their thoughts and opinions. Businesses can use blogs as a marketing communication channel.
Open specification for short range communication between wireless devices.
Buy One Get One Free. Promotional practice where on the purchase of one item another one is given free.
BOGOFL or BOGOF later
Buy One Get One Free Later. Promotional practice where on the purchase of one item the customer is entitled to another one for free at a later date.
Also referred to as BNFNT (Buy Now Free Next Time).
A product portfolio evaluation tool developed by the Boston Consulting Group. The matrix categorises products into one of four classifications based on market growth and market share.
The four classifications are:
• Cash cow – low growth, high market share
• Star – high growth, high market share
• Problem child – high growth, low market share
• Dog – low growth, low market share
Bounce – Hard/Soft Bounce
A hard bounce is the failed delivery of an email due to a permanent reason, like a non-existent address. A soft bounce is the failed delivery of an email due to a temporary issue, like a full mailbox or an unavailable server.
Website bounce rate:
The percentage of people who land on a page on your website and then leave without clicking on anything else or navigating to any other pages on your site. A high bounce rate generally leads to poor conversion rates because no one is staying on your site long enough to read your content or convert on a landing page (or for any other conversion event).
The set of physical attributes of a product or service, together with the beliefs and expectations surrounding it – a unique combination which the name or logo of the product or service should evoke in the mind of the audience.
Process by which a company develops new products to be marketed under an existing brand name.
The process by which marketers attempt to optimise the ‘Marketing mix’ for a specific brand.
Brand mapping and brand maps
Mapping the relative position of competing brands based on perceptual mapping of consumer perceptions of the brands. Also called perceptual maps, position maps and space maps.
Collection of attributes giving a brand a recognisable unique quality. May be the result of contrived marketing action or an accident of market perception.
The value which a brand would be given if represented on a company balance sheet.
See ’Ladder of loyalty’.
Electrical goods such as TVs, videos, stereo systems etc., used for home entertainment. So called because they were originally cased in Bakelite, a brown plastic.
Black Urban Professional – a demographic grouping.
There are traditionally four approaches, or orientations, to doing business that an organisation can adopt.
• Marketing orientation (customer orientation)
• Sales orientation
• Product orientation
• Production orientation
For definitions of these orientations see the entries for each one in this glossary.
A strategic document showing cash flow, forecasts and direction of a company.
The means by which a business works towards achieving its stated aims.
Business to Business (B2B)
Relating to the sale of a product or service for any use other than personal consumption. The buyer may be a manufacturer, a reseller, a government body, a non-profit-making institution, or any organisation other than an ultimate consumer.
Sales of products or services to government or other public sector organisations may be excluded from B2B and instead be classified as B2G.
See ‘Business to Government’.
Business to Consumer (B2C)
Relating to the sale of products or services for personal consumption. The buyer may be an individual, family or other group, buying to use the product themselves, or for end use by another individual.
Business to Government (B2G)
Buy Now Free Next Time (BNFNT)
The process that buyers go through when deciding whether or not to purchase goods or services. Buying behaviour can be influenced by a variety of external factors and motivations, including marketing activity.
Buzz marketing uses ‘word-of-mouth’ advertising: potential customers pass round information about a product.
See ‘Viral marketing’.
A text link, button, image, or some other type of web link that encourages a website visitor to take an action on that website, such as visiting a landing page to download a piece of content.
The action you want people to take could be anything: Download an ebook, sign up for a webinar, get a coupon, attend an event, and so on. A CTA can be placed anywhere in your marketing, on your website, brochures, e-mail sign off, or even at the end of a blog.
Computer-Assisted Personal Interviewing or Computer-Aided Personal Interviewing. Face-to-face interviews using computer-based questionnaires.
Cascading Style Sheets (CSS)
A language that manages design and presentation of web pages: colour, look, feel, and so on. It works together with HTML (see HTML), which handles the content of web pages. “HTML is the skeleton of your webpage, while CSS is the clothing.” With CSS you can create rules to tell your website how you want it to display information. And you can keep the commands for the style stuff (fonts, colours, and so on), separate from the commands for the content. They’re called ‘cascading’ because you can have multiple style sheets, with one style sheet inheriting properties from others.
See ‘Boston matrix’.
Products are grouped and managed by strategic business unit categories. These are defined by how consumers views goods rather than by how they look to the seller, e.g. confectionery could be part of either a ‘food’ or ‘gifts’ category, and marketed depending on the category into which it is grouped.
Computer-Assisted Telephone Interviewing or Computer-Aided Telephone Interviewing. Telephone interviews using computer-based questionnaires.
Cause related marketing
Partnership between a company or brand and a charity or ’cause’ by which the ’cause’ benefits financially from the sale of specific products. The term was first used by American Express in 1983 when it supported the restoration of the Statue of Liberty.
When the list is divided into a number of discrete cells to allow for a robust test across multiple variables. To determine optimum response, response rates are measured for each cell.
The methods used by a company to communicate and interact with its customers.
A marketing professional who has achieved ‘individual Chartered Status’ awarded by The Chartered Institute of Marketing.
The act of a user clicking on an internet advertisement that opens a link to the advertiser’s website. Also relevant for search results, when listings are clicked on. And email communications containing links to webpages.
Click-Through Rate (CTR)
The number of people per 100 (expressed in percentage terms), who click through to a URL embedded in an email, banner ad, text or graphic, to view a specific web page. Click-through rates can be reported against the total number of click-throughs (allowing multiple click-throughs from one IP address), or against the number of unique users who click through.
Another term for four colour process print. C=Cyan (blue), M=Magenta (red), Y=Yellow, K=Black
Telephoning or calling at the door of people or organisations who have not asked for information on, or expressed an interest in, your products or services.
Using a rented or compiled list to mail or email people or organisations who have not asked for information about your products or services.
A strip of colour along one side of every printed sheet, outside the trim area to confirm to the printer that the ink used is to the correct density or strength.
Advertising which compares a company’s product with that of competing brands. Must be used with caution to avoid accusations of misrepresentation from competitors.
Sales promotions that allow the consumer the possibility of winning a prize.
The product, proposition or benefit that puts a company ahead of its competitors.
Companies that sell products or services in the same market place as one another.
Visual and/or verbal stimulus presenting an idea for a product, service or advert.
Controversial strategy of deliberately confusing the customer. Examples are alleged to be found in the telecommunications market, where pricing plans can be so complicated that it becomes impossible to make direct comparisons between competing offers.
Any freely given specific and informed indication of an individual’s wishes by which, the individual signifies their agreement.
Individual who buys and uses a product or service.
The buying habits and patterns of consumers in the acquisition and usage of goods and services.
Content Management System (CMS)
A web application designed to make it easy for non-technical users to create, edit, and manage a website. Helps users with content editing and more “behind-the-scenes” work like making content searchable and indexable, automatically generating navigation elements, keeping track of users and permissions, and more.
Content Optimization System (COS)
Take a CMS (Content Management System), and optimize it to deliver customers the most personalised web experience possible.
An internet marketing term. In its simplest form contextual marketing shows a user adverts based on terms for which they have searched. More advanced applications pull adverts based on the content of a website being viewed, or on an individual’s browsing habits.
Sampling where the interviewer talks to the most accessible section of the population, i.e. shoppers willing to stop and be interviewed. This is not random sampling.
The key metric to evaluate the effectiveness of a call to action (often sales), reflecting the percentage of people converted into buyers (or whatever action is desired), out of the total population exposed to the conversion effort. For websites, the conversion rate is the number of visitors who took the desired action divided by the total number of visitors in a given time period (typically, per month). For email marketing, the conversion rate is the percentage of people who take an action out of the total number of people who received the mail.
Conversion Rate Optimization
The process of improving your site conversion using the design techniques, key optimisation principles, and testing. It involves creating an experience for your website visitors that will convert them into customers. CRO is most often applied to a web page or landing page optimisation, but it can also be applied to social media, CTA’s, and other parts of your marketing.
Small data file downloaded on to an end-user’s computer which allows a web site to identify the visitor. Cookies can be used to build profiles of repeat users of a website.
An association of producers or consumers who service their own needs by democratic control, distributing profit according to purchases, sales or fixed return on capital.
The law that protects an author’s original material, usually (in the UK) for 70 years after the author’s death. Similar law covers logos and brand names.
Creative process by which written content is prepared for advertisements or marketing material.
The character a company seeks to establish for itself in the mind of the public, reinforced by consistent use of logos, colours, typefaces and so on.
Also see ‘Corporate reputation’.
A complex mix of characteristics, such as ethos, identity and image that go to make up a company’s public personality. Corporate reputation hinges on investor confidence, unlike brand reputation which is contingent on customer confidence and reflected in sales.
Also see ‘Corporate identity’.
Corporate Social Responsibility (CSR)
A commitment by business to behave in an ethical, social and environmentally responsible way, and to have a positive impact on the local and global environment.
The policies of a company with regard to its choice of businesses and customer groups.
The strategy of producing goods at a lower cost than ones competitors.
An internet advertising model where the advertiser pays for each specific action someone takes, like an impression, click, form submit, or sale. You can decide if a given action is a lead or a sale. Marketers use it to figure out spending for the desired action they are driving people towards.
Cost per Acquisition
A payment model in which payment is based solely on qualifying actions, such as sales or registrations.
CPC (Cost per Click)
Rather than paying a cost per 1,000 emails delivered, or a cost per response, some suppliers charge a sum for all the recipients that click through on a marketing message.
Cost Per Lead (CPL)
The amount it costs for your marketing organisation to acquire a lead. This factors heavily into CAC/CoCA, and is a metric marketers should keep an eye on.
Cost per Thousand (CPM)
In email marketing, CPM commonly refers to the cost per 1,000 names on a given rental list.
Cost per Response (CPR)
This term is used to track responses, where the desired result is not purchase, click-through or cost per number of emails for the campaign.
Cross Cultural Consumer Characterisation (4C’s)
A consumer segmentation model, devised by Young and Rubicam that defines people by their core motivation. The model is based on Maslow’s hierarchy of needs and divides people into 7 types:
The philosophy of a company, reflected in aims such as the maximisation of customer satisfaction.
A person or company who purchases goods or services (not necessarily the end consumer).
Customer Acquisition Cost (CAC)
This is your total Sales and Marketing cost. To calculate, follow these steps for a given time period (month, quarter, or year):
1. Add up program or advertising spend + salaries + commissions + bonuses + overhead.
2. Divide by the number of new customers in that time period.
For example, if you spend £500 ,000 on Sales and Marketing in a given month and added 50 customers that same month, then your CAC was £10,000 that month.
Customer Lifetime Value (CLV)
The profitability of customers during the lifetime of the relationship, as opposed to profitability on one transaction.
Feelings or attitudes that incline a customer either to return to a company, shop or outlet to purchase there again, or else to re-purchase a particular product, service or brand.
Another term for marketing orientation.
See ‘Marketing orientation’.
Customer Relationship Management (CRM)
The provision of goods or services which fulfil the customer’s expectations in terms of quality and service, in relation to price paid.
Customer service programme
Strategy for assuring customers a positive buying experience in order to improve customer loyalty, increase cross-selling and promote advertising by word-of-mouth.
Also see ‘Customer satisfaction’.
Covert attempts using the internet to boost brand image, to make websites appear more popular than they are or to manipulate search engine listings.
Defining Advertising Goals for Measured Advertising Response – a model for planning advertising in such a way that its success can be quantitatively monitored.
Correcting or removing old, corrupt or inaccurate data.
Combining information from different sources to obtain information of greater quality for the end user.
The use of powerful software to analyse data to identify patterns or relationships in that data.
The obtaining, recording and holding of information which can then be retrieved, used, disseminated or erased. The term tends to be used in connection with computer systems, and today is often used interchangeably with ‘Information Technology’.
Data Protection Act
A law which makes organisations responsible for protecting the privacy of personal data. The current act (Data Protection Act 1998) is the United Kingdom’s response to the requirement to implement National legislation in accordance with the European Directive 95/46/EC.
An organisation making use of either its own data, or of data obtained from other sources for any direct marketing purpose.
Whereby customer information, stored in an electronic database, is utilised for targeting marketing activities. Information can be a mixture of what is gleaned from previous interactions with the customer and what is available from outside sources.
Also see ‘Customer Relationship Management (CRM)’.
Deal and Kennedy’s four types of corporate culture
Deal and Kennedy’s four types of corporate culture The Deal and Kennedy model of corporate cultures defines four types of organisation based on how quickly feedback and rewards are received and the levels of risk taken.
The four types are:
• Tough-guy macho (rapid feedback and reward; low risk)
• Work-hard, play-hard (rapid feedback and reward; high risk)
• Process (slow feedback and reward; low risk)
• Bet-the-company (slow feedback and reward; high risk)
Decision Making Unit (DMU)
The group of people in an organisation who make the buying decision.
Hyperlinking to a page, file or image on a website that bypasses that website’s homepage.
See ‘Shallow linking’.
A participant at a professional training course, workshop or seminar.
Demand and supply
Demand is the desire for a product at the market price.
Information describing and segmenting a population in terms of age, sex, income and so on, which can be used to target marketing campaigns.
A questions with only two possible responses (e.g. Yes or No).
Ensuring that products and services have a unique element to allow them to stand out from the rest.
Digital print uses an electronic means of creating a printed image as opposed to using printing plates. Ideal for short runs as very cost effective. Also ideal for personalised print, when combining a database with the printed item to ensure it is personalised to the recipient. This is not something that can be done very cost effectively at all with litho print.
Double Income No Kids Yet – a demographic grouping.
Delivery of an advertising or promotional message to customers or potential customers by mail.
All activities which make it possible to offer goods or services or to transmit other messages to a segment of the population by post, telephone, e-mail or other direct means.
A message on Twitter used to get in touch with a Twitter follower directly and in private. Direct messages can only be sent to your followers.
Direct Response Advertising (DRA)
Advertising incorporating a contact method such as a phone number, address and enquiry form, web site identifier or e-mail address, with the intention of encouraging the recipient to respond directly to the advertiser by requesting more information, placing an order and so on.
Discounted Cash Flow (DCF)
A method of estimating an investment’s current value based on the discounting of projected future revenues and costs. The further into the future the flow occurs, the more heavily it will be discounted.
The practice of a brand marketing a product to draw attention to another product with the same brand name, usually because the second product is banned from being advertised. An example would be a brewer marketing a non-alcoholic drink with the same brand name and logo as an alcoholic drink in order to draw attention to the alcoholic product.
Displacement marketing is sometimes referred to as surrogate marketing.
Residue of personal income after statutory deductions at source.
Study at home via CD, internet and workbooks.
The process of getting the goods from the manufacturer or supplier to the user.
The total number of emails sent as part of a single campaign/distribution to all (SMTP) addresses on the distribution list.
The total number of emails sent and successfully delivered as part of a single campaign/distribution to all (SMTP) addresses on the distribution list.
An increase in the variety of goods and services produced by an individual enterprise or conglomerate. It may be encouraged, either by business owners or by governments, in order to reduce the risk of relying on a narrow range of products.
Domain Name Server (DNS)
A product with a low market share of a declining market.
See ‘Boston matrix’.
Differentiate – Reinforce – Inform – Persuade.
A marketing communications model.
Variable content within an email message, including images and text that is displayed based upon information held in a database
See ‘Adopter categories’.
See ‘Adopter categories’.
E-commerce (Electronic commerce)
Any business transaction that takes place via electronic platforms.
Economic Value Added (EVA)
EVA is an estimate of true economic profit after making corrective adjustments to GAAP accounting, including deducting the opportunity cost of equity capital.
Efficient Consumer Response (ECR)
Having the right product in the right place at the right price with the right promotions.
Also see ‘Category management’, with its emphasis on how products look to the customer is seen as an integral part of achieving ECR.
The EFQM Excellence Model is a framework for organisational management systems, promoted by the European Foundation for Quality Management (EFQM) and designed for helping organizations in their drive towards being more competitive.
Interactive online tutorials, accessed via the internet or a company intranet.
Electronic Point of Sale (EPOS) system
A system whereby electronic tills are used to process customer transactions in a retail outlet. Local EPOS systems are usually connected to a central computer system, so that financial and inventory-related data can be exchanged between the store and head office, allowing automatic accounting and replenishment.
Marketing using electronic media such as the internet, smart phones or email.
Emotional Selling Preposition (ESP)
The unique associations established by consumers with particular products. For example, the emotional response to certain car marques ensures their continual success, even though other makers may offer superior performance at the same price.
Emotional Selling Proposition (ESP)
An emotional or psychological characteristic of a brand which makes it more desirable to the consumer. Based on the assumption that many buying decisions are not made on a purely rational basis, a brand with an ESP will have more appeal to a consumer than if it just relied on a rational selling proposition.
See ‘Unique Selling Preposition (USP)’.
Affirmation, usually from a celebrity, that a product is good.
Someone who sees an opportunity and risks their own money to set up a business organisation in order to respond to it.
C4 dimensions 324mm 229mm for A4 items
C5 dimensions 162mm x 229mm for A5 items
DL dimensions110mm x 220mm for A4 folded into 3
C6 dimensions 114mm x 162mm for A4 folded into 4
Monitoring of an organisation’s external environment, allowing the organisation to spot or anticipate emerging issues. This provides an early warning of changing external conditions.
Comprehensive list of factors which affect an organisation.
Equivalent Advertising Value (EAV)
See ‘Advertising Value Equivalent’.
The plotted relationship between the amount of products produced and the cost per unit over time from launch. As more units are produced, the cost per unit usually declines, an effect that is partially attributable to the accumulation of experience.
The marketing of goods or services to overseas customers.
Study of the external marketing environment, including factors such as customers, competition, and social change.
Facebook is an online social networking service.
Focused Advertising Sampling Technique: an approach concentrating promotions into a short space of time to saturate the market.
The practice of sending representatives or agents to retail outlets with a view to building brand and supporting sales. They may for example conduct in-store promotions, set up point of sale displays, and ensure that products are displayed to best advantage.
A firewall is a method of stopping spam, unwanted content, viruses etc. from reaching a user’s inbox. Usually used in a corporate context, however personal firewalls are becoming more popular.
Five M’s of management
An expansion of the four M’s of management framework with the addition of time – Money, Material, Machine, Manpower and Minutes (Time).
Also see ‘Four M’s of management’.
Fast Moving Consumer Goods – such as packaged food, beverages, toiletries, and tobacco.
A tool for market research where small groups of customers are invited to participate in guided discussions on the topic being researched.
An outdated hashtag on Twitter (#FF or #FollowFriday) in which, every Friday, you send a tweet to your followers recommending a Twitter handle you think is interesting and that others might want to follow too. You accompany these Tweets with #FF of #FollowFriday.
Calculation of future events and performance.
See ‘Cross Cultural Consumer Characterisation’.
Four M’s of management
Money, Material, Machine and Manpower – traditional framework for viewing the resources available to a business, which can be useful when designing a marketing plan.
Also see ‘Five M’s of management’.
See ‘Marketing mix’.
The selling of a licence by the owner (franchisor) to a third party (franchisee) permitting the sale of a product or service for a specified period. In business format franchising the agreement will involve a common brand and marketing format.
Free market economy
An economy in which forces of supply and demand are allowed to operate unhampered by government or other regulations.
Full service agency
Advertising agency offering clients a wide range of activities and expertise over and above the normal creative and/or media facilities. Such services will include marketing research and planning, merchandising and below-the-line sales promotions, press and/or public relations, packaging, etc.
A term to describe people born from about the mid-1960s to the late 1970s. The dates of Generation X do vary from one definition to another.
Generation Y / Millennials
A term to describe people born from the 1980s to the mid-1990s. The dates of Generation Y do vary from one definition to another.
“Millennials” and “echo boomers” are other terms used to describe this generation.
A term to describe people born from the mid-1990s onwards, although the date Generation Z begins from does vary from one definition to another. The “igeneration”, “internet generation” and “iPod generation” are other terms used to describe this generation.
A method of analysis combining geographic and demographic variables.
Greying, Leisured, Affluent, Middle-aged – a demographic grouping.
Google Analytics (GA)
A service by Google that generates detailed statistics about a websites traffic and traffic sources, and measures conversions and sales. Marketers use it to get to know their audience, trace their customers path, and make a visual assessment of how visitors interact with their pages.
Sometimes called ‘silver market’. Term used to define population over a certain age – usually 65.
Grey marketing (also called parallel importing)
The illicit sale of imported products contrary to the interests of a holder of a trademark, patent or copyright in the country of sale.
Gross Domestic Product (GDP)
Guarantees and warranties
Legal documents committing a company to deal with faulty goods or services by a variety of methods including repair, replacement or compensation.
The strategy of targeting small and specialised customer groups in such a way that bigger companies will not find it worthwhile to retaliate.
Green YUPPIE – a demographic grouping.
Sales behaviour that can be interpreted by the customer as aggressive or which places undue pressure on the customer.
Exploration of future developments, opportunities and threats. Horizon scanning may explore existing issues and trends, as well as identifying new or potential issues.
House to house distribution
HTML (hypertext markup language)
The language which gives a web browser specific instructions on how to display a formatted document in the browser window. HTML has a specific group of standards that make it universal to all computer platforms.
An HTML email is one that is graphically rich with colour and images and is emerging as the standard for email marketing. Marketers have to keep in mind that some recipients do not want to receive their emails in HTML. However, HTML messages often pull a higher response than plain-text messages.
Incentives offered to overcome resistance to purchase, for example ‘special offers’ or money-back guarantees.
The marketing of industrial products.
A product with a high market share of a new market.
Marketers joining chat rooms posing as ordinary users in order to spread marketing messages, usually as personal endorsements.
A model demonstrating how marketing ideas create value. See our Return on ideas report.
Paid-for television programme purporting to be a genuine station programme. Its use is restricted to certain countries including the USA, but not the UK. Similar in practice to an advertorial.
Development of new products, services or ways of working.
See ‘Adopter categories’.
A market for goods or services consisting of universities, schools, charities clubs and the like.
Rarely used comparison of the cost effectiveness, advertising effectiveness, target demographics, etc. of various media (e.g. television vs radio, newspapers vs magazines) to ascertain their overall effectiveness.
The study of a company’s internal marketing resources in order to assess opportunities, strengths or weaknesses.
Employees within an organisation viewed as consumers of a product or service provided by another part of the organisation – products or services which the employees need to do their own work. For example, the marketing department could be internal customers of the IT department.
The process of eliciting support for a company and its activities among its own employees, in order to encourage them to promote its goals. This process can happen at a number of levels, from increasing awareness of individual products or marketing campaigns, to explaining overall business strategy.
The conduct and co-ordination of marketing activities in more than one country.
IP Address – Internal Protocol Address
A numerical label assigned to each device participating in a computer network that uses the Internal Protocol for communication.
Internet Protocol Television. Technology allowing television and video signals to be received via an internet connection.
Internet Service Provider
A business entity or partnership formed by two or more parties for a specific purpose.
Japanese YUPPIE – a demographic grouping.
An arrangement between a supplier and a customer whereby deliveries of a product are timed precisely to coincide with the need for that product. This saves unnecessary capital being tied up in stock waiting to be used.
See ‘Repertory Grid Method’.
Key Account Management (KAM)
Account management as applied to a company’s most important customers.
Also see ‘Account management’.
Key Performance Indicator (KPI)
A type of performance measurement companies use to evaluate an employees or an activities success. Marketers look at KPIs to track progress toward marketing goals and successful marketers constantly evaluate their performance against industry standard metrics.
Examples of KPIs include CAC, blog traffic sources, and homepage views. Choose KPIs that represent how your marketing and business are performing.
Key Success Factors (KSF)
Those factors that are a necessary condition for success in a given market. That is, a company that does poorly on one of the factors critical to success in its market is certain to fail.
Advertisers paying for links to their websites to appear on internet search engines alongside search results, sometimes as “sponsored links”, based on keywords entered into the search engine.
See ‘Search marketing’.
Adults who buy products that are predominantly aimed at children.
Knowledge Management (KM)
The collection, organisation and distribution of information in a form that lends itself to practical application. Knowledge management often relies on information technology to facilitate the storage and retrieval of information.
Kotler’s six marketing audits
Philip Kotler views a marketing audit as having six components. A full marketing audit would comprise all six audits, but each component can be undertaken on its own if a full audit is not required. The six components are:
• Marketing environment audit
• Marketing strategy audit
• Marketing organisation audit
• Marketing systems audit
• Marketing productivity audit
• Marketing function audit
See ‘Marketing audit’.
Ladder of loyalty
A marketing communications tool that aims to move a consumer along a path from a prospect (“not yet purchased”) to advocate (“brand insistence”) through customer (“trialist”) and client (“repeat purchases”) by using integrated marketing communications techniques. As a consumer travels up the ladder they become increasingly loyal to the brand.
Also called the ‘Branding ladder’.
See ‘Adopter categories’.
The page on a website where the visitor arrives (which may or may not be the home page). In terms of an email campaign, one can think of the landing page as the page to which the email directs the prospect via a link.
See ‘Adopter categories’.
Way of living, in the broadest sense, of a society or segment of that society. Includes both work and leisure, eating, drinking, dress, patterns of behaviour and allocation of income.
Lifetime Value (LTV)
A prediction of the net profit attributed to the entire future relationship with a customer. To calculate LTV, follow these steps for a given time period:
1. Take the revenue the customer paid you in that time period.
2. Subtract from that number the gross margin.
3. Divide by the estimated churn rate (cancellation rate), for that customer.
Example: If a customer pays you £100,000 per year where your gross margin on the revenue is 70%, and the customer type is predicted to cancel at 16% per year, then the customers LTV is £437, 500.
Text links, hyperlinks, graphics or images which, when clicked or when pasted into the browser, direct the prospect to another online location. To be most effective in motivating action, links must be obvious to the visitor or recipient.
A product offered at cost price or less to increase store traffic. The aim is that once the customer has purchased the loss leader product they will be tempted to buy other products priced to make a profit.
3GPP Long Term Evolution – the latest standard in the mobile technology that began with GSM, moving up to the current 3G. Basically makes 3G bandwidth 10x fatter for quicker uploads and downloads.
Long Term Value
The external factors which affect an organisation’s planning and performance, and are beyond its control. It includes factors such as socio-economic, legal and technological change.
See ‘Meso environment’ and ‘Micro environment’.
Mailing Preference Service (MPS)
A database of individual home addresses where the occupiers have elected not to receive unsolicited direct (marketing) mail.
A firm attempting to gain market leadership through marketing efforts.
The process of growing sales by offering existing products (or new versions of them) to new customer groups (as opposed to simply attempting to increase the company’s share of current markets).
The launch of a new product into a new or existing market. A different strategy is required depending on whether the product is an early or late entrant to the market; the first entrant usually has an automatic advantage, while later entrants need to demonstrate that their products are better, cheaper and so on.
A firm that is happy to follow the leaders in a market place without challenging them, perhaps taking advantages of opportunities created by leaders without the need for much marketing investment of its own.
Seller of the product or service with the largest market share in its field.
Also see ‘Market challenger’ and ‘Market follower’.
The attempt to grow one’s business by obtaining a larger market share in an existing market.
See ‘Market share’ and ‘Market development’.
Process of making investigations into the characteristics of given markets, e.g. location, size, growth potential and observed attitudes.
Also see ‘Marketing research’.
The division of the market place into distinct subgroups or segments, each characterised by particular tastes and requiring a specific marketing mix.
Also see ‘Marketing mix’.
A company’s sales of a given product or set of products to a given set of customers, expressed as a percentage of total sales of all such products to such customers.
Market Value Added (MVA)
Market Value Added (MVA) is the difference between the equity market valuation of a listed/quoted company and the sum of the adjusted book value of debt and equity invested in the company.
Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. CIM’s official definition.
Usually, abbreviations such as YUPPIE, BUPPIE, and GLAM.
See individual acronyms for a description.
Scrutiny of an organisation’s existing marketing system to ascertain its strengths and weaknesses.
Also see ‘Kotler’s six marketing audits’.
Marketing Decision Support System (MDSS)
Tools for the collection and analysis of data to aid the marketing decision making process.
Any information used or required to support marketing decisions – often drawn from a computerised ‘Marketing information system’.
Marketing Information System (MIS)
Practices and procedures to gather, sort, store, analyse and distribute marketing information. See ‘Marketing information’.
Measurements that help with the quantification of marketing performance, such as market share, advertising spend, and response rates elicited by advertising and direct marketing.
The combination of marketing inputs that affect customer motivation and behaviour. These inputs traditionally encompass four controllable variables ‘the 4 Ps’: product, price, promotion and place. The list has subsequently been extended to 7 Ps, the additions being people, process and ‘physical evidence’.
Lack of vision on the part of companies, particularly in failing to spot customers’ desires through excessive product focus. Term derives from the title of a seminal article by Theodore Levitt published in the Harvard Business Review in 1960.
An organisation that is marketing orientated focuses on the needs of the customer. It aims to meet customer demands, and therefore profit through customer satisfaction and loyalty. Marketing orientation is sometimes referred to as customer orientation.
Also see ‘Business orientations’.
A written plan, usually in-depth, describing all activities involved in achieving a particular marketing objective, and their relationship to one another in both time and importance.
The selection and scheduling of activities to support the company’s chosen marketing strategy or goals.
Also see ‘Marketing strategy’.
Research activity which provides information relating to marketing operations. The term embraces conventional market research as well as motivation studies, advertising effectiveness, packaging effectiveness, logistics, media research and any analysis of internal and external statistics of relevance.
Also see ‘Market research’.
Marketing Return On Investment (MROI)
See Return On Marketing Investment (ROMI).
The set of objectives which an organisation allocates to its marketing function in order to support the overall corporate strategy, together with the broad methods chosen to achieve these objectives.
Maslow’s hierarchy of needs
Developed by A H Maslow, this is a framework of needs for understanding the development of society over time. The hierarchy can also be used to understand consumers’ needs from brands. The hierarchy is represented as a five-tiered pyramid, with physiological needs (the basic needs for survival) at the base, progressing up through safety, belongingness, esteem and, finally, self-actualisation.
Large homogenous market for consumer products or services.
McKinsey seven S’s of management (or 7-S model)
A framework for considering business strategy with reference to seven interrelated, aspects of the organisation: Systems, Structure, Skills, Style, Staff, Strategy, and Shared values.
M-commerce (Mobile commerce)
E-commerce transactions using mobile or wireless devices.
Marketing Decision Support System.
See ‘Marketing metrics’.
Media neutral planning
A customer focussed review of media options during communications planning based on research, analysis and insight, not habit and preference.
Merger: the formation of one company from two existing companies. Acquisition: one company acquiring control of another by purchase of a majority shareholding.
Aspects of an organisation’s external environment over which it may exert some influence such as its industry, supplier and marketplace environments.
See ‘Macro environment’ and ‘Micro environment’.
When used in conjunction with ‘macro environment’ it refers to the immediate context of an organisation’s operations over which it can exert some influence, including such elements as suppliers, customers, competitors and well as its internal environment.
When used in conjunction with ‘macro environment’ and ‘meso environment’ it refers to the organisation’s internal environment.
See ‘Macro environment’ and Meso environment’.
Miles and Snow’s four strategic types
The Miles and Snow strategic topography sets out four types of organisation based on their strategies.
The four strategic types are:
A company’s summary of its business philosophy and direction.
Massively Multiplayer Online Game. A computer game played via the internet which is capable of supporting many players simultaneously.
Massively Multiplayer Online Role Playing Game. A genre of Massively Multiplayer Online Game (MMOG) where players assume the role of a (usually fictional) character.
Multimedia Message Service. Text, audio, graphic and video messages sent by mobile phones, or other compatible devices, over a wireless network.
Models (or Marketing models)
Graphical representations of a process designed to aid in understanding and/or forecasting. Computerised models allow the simulation of scenarios based on different assumptions about changes to the macro environment and micro environment.
Also see ‘Macro environment’ and ‘Micro environment’.
A training programme that is studied over a period of time, delivered in modules that are linked together.
Changes in levels expressed with respect to the previous month. These changes are more volatile than quarter-on-quarter or year-on-year and tend to reflect one-off events like holidays, website troubles, natural disasters and stock market crashes. Compair the average of whatever you’re measuring in month X with month Y to calculate the MoM change.
A time period starting at the beginning of the current month and ending at the current date.
Monthly Recurring Revenue
The amount of revenue a subscription-based business receives per month.
Geodemographic segmentation model classifying neighbourhoods into 10 lifestyle types i.e.: Elite Suburbs; Average Areas; Luxury Flats.
Employing individuals to anonymously visit or contact retailers or service providers in order to evaluate customer service, display quality, prices, etc.
An acronym sometimes used to refer to fields in a database that contain the Name, Address and Profession of an individual in the database.
National Change Of Address (NCOA)
Database that helps locate forwarding addresses.
National Readership Survey (NRS)
A commercial organisation which provides estimates of the number and nature of the people reading UK newspapers and consumer magazines.
Net Promoter Score (NPS)
Percentage of promoters minus percentage of detractors.
Technique to quantify how consumers will respond to brands and advertising. The brain is mapped, using functional Magnetic Resonance Imaging (fMRI), to record conscious and subconscious responses to advertising, products or brands.
New Product Development (NPD)
The creation of new products, from evaluation of proposals through to launch.
The marketing of a product to a small and well-defined segment of the market place.
No Income, Lots of Kids – a demographic grouping.
Original Equipment Manufacturer. Initially, the term was used for companies that produced products or components which were purchased by another company, to be resold under the purchasing company’s brand, or incorporated into its products. The term is now also used for a company that manufactures a product and sells it under its own brand.
A competitive marketing strategy, the purpose of which is to win market share away from other players in the market.
Ohmae’s strategic triangle
Kenichi Ohmae’s concept that, when reduced to its essential components, business strategy deals with the interplay between the corporation (company), the customer and the competition.
One Income, No Kids – a demographic grouping.
Continuous survey that is used to cover a number of topics at the same time. Companies offering this facility invite sponsors to commission a limited number of questions that would not alone justify setting up a separate research study.
One to one marketing (1:1 marketing)
Marketing that either treats each customer as an individual rather than as part of a broad segment, or that aims to establish a personal relationship with the customer.
Course material accessed via the internet or a company intranet.
Older People with Active Lifestyles – a demographic grouping.
The percentage of emails opened in any given email marketing campaign, or the percentage opened of the total number of emails delivered.
Opt-in (or Subscribe)
Where an individual has positively indicated that he or she wants to receive email marketing.
Opt-out (or Unsubscribe)
Where an individual requests not to be included on an email list at the point of data collection or with subsequent communications.
One Recent Child, Heavily In Debt – a demographic grouping.
Opportunities To Hear.
Opportunities To Read.
Opportunities To See.
What busy business owners without the in-house marketing resource or expertise can call upon. Call us now 01296 737823.
See ‘Marketing mix’.
Material used to protect goods; also an opportunity to present the brand and logo.
A request to load a single web page on the internet. Marketers use them to analyze their website and to see if any changes on the webpage results in more or fewer page views.
Politically Active and Not Seeking Employment – a demographic grouping.
Pantone is a company that produces individual ‘spot’ colours. Also referred to as PMS colours. These are produced because sometimes it is not always possible to reproduce an exact colour out of the most common four colour process. Actually only around 60% of all visible colours are achievable through four colour process, hence the need for spot colours.
See ‘Grey marketing’.
Also called the 80/20 rule. The principle that about 80% of the outcomes will come from about 20% of your effort. See our ’10 minute guide’ on the 80/20 rule.
Payment By Results (PBR)
Remuneration of an employee or service provider according to productivity or other measure of performance.
The amount of money spent to get a digital advertisement clicked. Also an internet advertising model where advertisers pay a publisher (usually a search engine, social media site or website owner), a certain amount of money every time their ad is clicked.
Peer to Peer (P2P) marketing
Technique of encouraging customers to promote your product to one another, particularly on the Internet. An example might be a web site that offers users a discount on products in return for recruiting new customers for the site.
Also see ‘Word of Mouth’ and ‘Viral marketing’.
Political, Economic, Environmental, Socio-cultural and Technological – a framework for viewing the macro environment.
Adoption of a lower price strategy in order to secure rapid wide penetration of a market.
Process of representing consumer perceptions of brands in relationship to each other. Consumers’ perceptions of brands are measured against certain criteria, i.e. value, customer service, innovation and quality.
See ‘Brand mapping and brand maps’.
An open market situation where free trade prevails without restriction, where all goods of a particular nature are homogeneous and where all relevant information is known to both buyers and sellers.
A performance measurement and management framework. It addresses all of an organisation’s stakeholders – principally investors, customers, intermediaries, employees, suppliers, regulators and communities.
Data related to a living individual who can be identified from the information; includes any expression of opinion about the individual.
The practice of writing the email to make the recipient feel that it is more personal and was sent with him or her in mind. This might include using the recipient’s name in the salutation or subject line, referring to previous purchases or correspondence, or offering recommendations based on previous buying patterns.
One-to-one communication between seller and prospective purchaser.
Political, Economic, Socio-cultural and Technological – a framework for viewing the macro environment.
The influence children have over purchases by adults: an influence which, controversially, advertisers may seek to stimulate.
Political, Economic, Socio-cultural, Technological, Legal and Environmental – a framework for viewing the macro environment.
Redirecting traffic from a website, such as a bank, to a bogus website designed to mimic the original website in order to steal a user’s login details and other personal information.
Sending legitimate-looking emails, often giving the impression that they are sent from a trusted source, such as a bank, asking for personal information that can be used for identity theft.
The elements of ‘marketing mix’ which customers can actually see or experience when they use a service, and which contribute to the perceived quality of the service, e.g. the physical evidence of a retail bank could include the state of the branch premises, as well as the delivery of the banking service itself.
See ‘Marketing mix’.
Profit Impact of Marketing Strategies: a US database supplying data such as environment, strategy, competition and internal data with respect to 3000 businesses. This data can be used for benchmarking purposes.
Another term for Pantone spot colours.
Term used to define the broadcasting of multimedia files to iPods or other similar devices. Subscribers are able to view or listen to podcasts online.
Point of Sale (POS)
The location, usually within a retail outlet, where the customer decides whether to make a purchase.
Also called Point of Purchase (POP).
Also see ‘Electronic Point of Sale (EPOS) system’.
Profitable, Offensive, Integrated, Strategic, Effectively executed – Davidson’s five principles of offensive marketing.
Automatically launched internet advertisement that appears in a small window behind another webpage.
Automatically launched internet advertisement that appears in a small window in front of another webpage.
Porter’s five forces
An analytic model developed by Michael E. Porter. The five forces in terms of which the model analyses businesses and industries are: Buyers, Suppliers, Substitutes, New Entrants and Rivals.
Porter’s generic strategies
Michael E Porter set out three basic strategies for competitive advantage that a company can take:
• Cost leadership – aims to be the cheapest provider in its industry
• Differentiation – aims to set itself apart from its competitors by offering something unique which is widely valued by its buyers
• Focus – targets a narrow segment of a broader market and then either adopts a cost leadership or differentiation strategy. For a focus strategy to succeed, the target segment must have buyers with unusual needs, which sets it apart from the broader market.
Porter’s value chain
A model developed by Michael E. Porter to analyse the activities and processes through which organisations create value and competitive advantage. An organisation’s strategic activities are each seen as having inputs, transformation processes and outputs.
According to Porter (1985) these activities are:
• Inbound logistics
• Outbound logistics
• Marketing and sales
• Support activities
• Human resource management
• Technology development
Portfolio (and portfolio analysis)
The set of products or services which a company decides to develop and market. Portfolio analysis is the process of comparing the contents of the portfolio to see which products or services are the most promising and deserving of further investment, and which should be discontinued.
The creation of an image for a product or service in the minds of customers, both specifically to that item and in relation to competitive offerings.
Poster Audience Research – the UK Outdoor advertising industry audience measurement organisation.
PP or Printed Pages
The number of sides of paper that will be printed on.
Highly pricing a product or service to give an impression of quality or in order to offer the consumer additional service.
Applying a high price to a product to indicate its high quality.
A producer who has enough market power to influence prices.
A producer who has no power to influence prices.
Four colour process – cmyk
A clear description of a website or Data User’s policy on the use of information collected from and about website visitors and what they do/do not do with the data.
See ‘Boston matrix’.
The alternative name for four colour process print.
Product life cycle
A model describing the progress of a product from the inception of the idea, via the main period of sales, to its eventual decline.
Product life cycle
The progress of a product from the inception of the idea, via the main period of sales, to its eventual decline. The product life cycle is sometimes divided into four stages, which are:
An organisation that is product orientated focuses on the quality of the product. It assumes the customer wants the highest level of quality, and works towards improving quality levels. The problem with this assumption is that it does not ask if the customer wants the product. It aims to profit through sales volume.
See ‘Business orientations’.
The use of a product or service within a television or radio programme, or a film: an example would be the appearance of a leading coffee brand on a table in “Eastenders”. There are strict guidelines as to the payments that can be given for such appearances.
The process of reusing or recovering existing goods. It can involve recycling, refurbishing, remanufacturing and the resale of existing products.
An organisation that is production orientated focuses on manufacturing an affordable product and making that product available. Its aims are to increase production, reduce costs, and make production and distribution as efficient as possible. A production orientated organisation assumes customers differentiate between products on price and will therefore buy the cheapest product. It aims to profit through a high volume of sales.
See ‘Business orientations’.
The components of an individual promotional campaign, which are likely to include advertising, personal selling, public relations, direct marketing, packaging, and sales promotion.
Detailed plan describing promotional objectives and activities involved in achieving the role of promotions as laid down in the marketing plan.
A word invented by futurologist Alvin Toffler to describe those who create goods, services or experiences for their own use or satisfaction, rather than for sale or exchange. The word prosumer is formed by contracting and combining the words producer and consumer.
The wireless transmission of advertising to compatible devices in a local area.
Public Relations (PR)
The function or activity that aims to establish and protect the reputation of a company or brand, and to create mutual understanding between the organisation and the segments of the public with whom it needs to communicate.
Pull promotion, in contrast to Push promotion, addresses the customer directly with a view to getting them to demand the product, and hence “pull” it down through the distribution chain. It focuses on advertising and above the line activities.
Also see ‘Push promotion’.
Push promotion relies on the next link in the distribution chain – e.g. a wholesaler or retailer – to “push” out products to the customer. It revolves around sales promotions – such as price reductions and point of sale displays – and other below the line activities.
Also see ‘Sales promotion’.
Or ‘Quick Response’ codes. These are the black and white blocks of pixels, now being found on business cards, on brochures or posters which contain a message; usually all of the contact details including social media and website details for a business contact, which can be picked up by a smart phone.
Market research that does not use numerical data but relies on interviews, ‘focus groups’, ‘repertory grid’, and the like, usually resulting in findings which are more detailed but also more subjective than those of ‘quantitative research’.
Compare with ‘Quantitative research’.
Market research that concentrates on statistics and other numerical data, gathered through opinion polls, customer satisfaction surveys and so on.
Compare with ‘Qualitative research’.
R & D
Research and development.
Radio Joint Audience Research Operates a single audience measurement system for the radio industry – BBC, UK licensed and other commercial stations.
Retired Affluent Professionals – a demographic grouping.
Ratio of Lifetime Value to Customer Acquisition Cost (LTV:CAC)
Once you have the LTV and the CAC, compute the ratio of the two. If it costs you £100,000 to acquire a customer with an LTV of £437,500, then your LTV:CAC is 4.4 to 1.
A period of negative economic growth. Common criteria used to define when a country is in a recession are two successive quarters of falling GDP or a year-on-year fall in GDP.
A group with which the customer identifies in some way, and whose opinions and experiences influence the customer’s behaviour. For example, a sports fan might buy a brand of equipment used by a favourite team.
This mark is used to make sure that every colour, once printed onto the sheet, is being printed in exactly the right place, or ‘in register’, so it doesn’t look like you’re looking at something that needs 3D glasses to view properly!
The strategy of establishing a relationship with the customer which continues well beyond the first purchase.
Repertory Grid Method (RGM)
A technique for representing the attitudes and perceptions of individuals. The technique can be useful in developing market research (and other) questionnaires.
Also called Personal Construct Technique and Kelly grids.
Residential training courses
Intensive training courses involving evening training sessions and including overnight stay and full accommodation.
Return On Capital Employed (ROCE)
The value that an organisation derives from investing in a project.
Return On Equity (ROE)
Measures the rate of return on the ownership interest (shareholders’ equity) of the common stock owners. ROE is viewed as one of the most important financial ratios.
Return On Investment (ROI)
The value that an organisation derives from investing in a project.
Return On Marketing Investment (ROMI)
The value that an organisation derives from investing in marketing.
See ‘Return On Investment (ROI).
Return On Sales Enablement (ROSE)
The value an organisation derives from investing in activities that drive sales.
A re-posting of a tweet posted by another user on Twitter. Retweets look like normal tweets except for the retweet icon. This can be done two ways:
1. You can retweet an entire tweet by clicking on the retweet button.
2. You can post a new tweet that includes your own commentary in addition to the the information you are retweeting. The formula for this is – your own commentary + the retweet + the original tweeters Twitter handle + colon + the exact text from their original tweet.
Radio frequency identification.
Recommended Retail Price. The price that a manufacturer suggests a retailer should sell its product at.
RSS (Really Simple Syndication)
Software that allows electronic content to be sent to websites or compatible devices as soon as it is updated or posted. There is some debate as to what RSS actually stands for, Really Simple Syndication is the most commonly used term.
An organisation that is sales orientated focuses on selling enough to meet the organisation’s needs. It believes that customers are reluctant to purchase, and that products are sold rather than bought. A sales orientated organisation typically relies on strong sales departments, aggressive sales techniques or sales promotions. It aims to profit through a high volume of sales.
See ‘Business orientations’.
A range of techniques used to engage the purchaser. These may include discounting, coupons, guarantees, free gifts, competitions, vouchers, demonstrations, bonus commission and sponsorship.
The use of a statistically representative subset as a proxy for an entire population, for example in order to facilitate quantitative market research.
Advertising poster carried by a person in public, usually in the form of two displays, one at the front and one at the back, suspended over the shoulder and thus “sandwiching” the carrier.
Preliminary design or layout of an advertisement or other promotional material.
Also a UK pressure group against offensive advertising (S.C.A.M.P. – Stop Crude Advertising Material in Public).
The evaluation or testing of a product, and sometimes its ‘marketing mix’, at various stages in the new product development cycle.
Search Engine Optimisation. Something all websites need in order to rank and be found by search engines. Call us now for help with yours.
Promoting a company’s website using internet search engines. Either getting a company website listed in search results (unpaid) or as a listing on the same webpage as the search results (paid).
Segmentation is the act of taking your email list and separating it so that recipients get different content based on their demographics, buying patterns, areas of interest etc.
One day training sessions involving role play and syndicate group work exercises.
Information relating to racial or ethnic origin, political opinions, religious or other beliefs, trade union membership, health, sex life and criminal convictions.
A model developed by Zeithaml, Parasuraman and Berry to measure service quality. SERVQUAL measures five dimensions of service quality:
See ‘Marketing mix’.
See ‘McKinsey’s seven S’s’.
Hyperlinking to a website’s homepage. See ‘Deep linking’.
Share Of Voice (SOV)
The total percentage that you possess of the particular niche, market, or audience you are targeting.
The worth of a company from the point of view of its shareholders. Maximising shareholder value is a common objective for business management.
Single Income, No Boyfriend and Absolutely Desperate – a demographic grouping.
Single Independent and Divorced (only applies to women) – a demographic grouping.
Single Income, Two Kids Outrageous Mortgage – a demographic grouping.
Skills Level Analysis Process (SLAP)
An online tool to assess skills of marketing professionals and to measure them against business aims and objectives.
Setting the original price high in the early stages of the product life cycle in an attempt to get as much profit as possible before prices are driven down by increasing competition.
Service Level Agreement. A contract, or part of a contract, that states the service that should be supplied to a customer. Penalty clauses may be contained in the SLA for use when the required level of service is not met by the supplier.
Socio-cultural, Legal, Economic, Political and Technological – a framework for viewing the ‘macro environment’.
A simple acronym used to set objectives is called SMART objectives. SMART stands for:
1. Specific – Objectives should specify what they want to achieve.
2. Measurable – You should be able to measure whether you are meeting the objectives or not.
3. Achievable – Are the objectives you set, achievable and attainable?
4. Realistic – Can you realistically achieve the objectives with the resources you have?
5. Time – When do you want to achieve the set objectives?
SMB (Small to Medium Business)
Usually defined as a companies that have between 10 and 500 employees.
SME (Small to Medium Enterprise)
Usually defined as organisations with fewer than 250 employees, with medium businesses having 50 to 249 employees and small businesses having up to 49 employees. Small businesses include micro businesses, which can be separately defined as having up to five employees.
Short Message Service. Text only messages sent by mobile phones, or other compatible devices, over a wireless network.
The application of marketing concepts and techniques to propagate ideas and behaviours for the social good.
Digital channels to communicate peer to peer, B2B, B2B. There are now many different social media channels e.g. Twitter LinkedIn, Pinterest, and each has a slightly different user base, so ensure you investigate which is most appropriate if you are planning to use it for your marketing purposes.
Socially responsibly marketing
The concept that marketing should not harm the social environment and that it should work to benefit society in the long term.
See ‘Social marketing’.
Where an individual is considered to have opted-in, on the basis that they have provided their email address during a sale or during the negotiation of a sale and other conditions are met, including that the individual was informed of how the information they provided would be used and were provided with an opportunity to opt out.
Any software that is hosted by another company, which stores your information in the cloud.
Solicited email or UCE (Unsolicited Commercial Email)
Where an individual has actively invited the Data User to send the individual a commercial email.
Solid to Process
The pantone reference book that shows the spot Pantone colours equivalent when reproduced out of four colour process.
Situation, Objective, Strategy, Tactics and Targets.
See ‘Brand mapping and brand maps’.
Spam is the name given to a random, untargeted bulk commercial email, where the recipient did not request the communication.
The attempt to manipulate the depiction of news or events in the media through artful public relations – often used with derogatory connotations.
Specialised form of sales promotion where a company will help fund an event or support a business venture in return for publicity.
A model developed by Dr R G Cooper for bringing new products from idea to launch. The model divides the new product development process into stages, with each stage being separated from the next by a management decision gate. Management approval must be obtained at each gate before the process can move on to the next stage. See Stage-Gate® product innovation process.
An individual, organisation or community that has an interest in the strategy and operation of an organisation. Stakeholders may include shareholders, employees, customers, government, local communities, opinion formers, suppliers and partners.
Standard Industrial Classification (SIC) codes
Codes that identify a business or service according to its primary kind of activity. Two-digit codes are the most general classifications, but most codes use at least four digits to allow more specific industry identifications.
Standard Occupational Classification (SOC) codes
Codes that identify workers by job function. SOC codes sort occupations into a small number of broad categories, usually using a numerical coding system. The coding within these categories is extended to define narrower categories and job functions.
See ‘Boston matrix’.
Sequence of sketches designed to show the main elements of a television or cinema commercial.
Senior Urban Professionals – a demographic grouping.
Supplier Relationship Management (SRM)
Managing relationships with suppliers often through the use of IT systems.
Compare with ‘Customer Relationship Management’.
Supply (and demand)
The network of suppliers, manufacturers and distributors involved in the production and delivery of a product.
See ‘Displacement marketing’.
A method of analysis which examines a company’s Strengths, Weaknesses, Opportunities and Threats. Often used as part of the development process for a marketing plan, or to feed the results of a marketing audit back into a revised plan.
Target Group Index (TGI)
A continuous survey of adults in which their purchasing habits in detail are related to their media exposure, thus facilitating accurate media planning.
Selecting a target audience or group of individuals likely to be interested in a certain product or service. Targeting is very important to an email marketer as a targeted and relevant email campaign yields a higher response and results in fewer unsubscribes.
The marketing of a product or service over the telephone.
Telephone Preference Service (TPS)
A database of business and individual telecoms subscribers who have elected not to receive unsolicited direct marketing calls.
TLD – Top Level Domain
New for 2011will be new domain endings like .sport .eco .music in addition to the current 21 generic domains like .com .co.uk and .biz
Making samples of a new product available to see what representative consumers think of it and its proposed ‘marketing mix’.
Two Incomes, Nanny and Kids – a demographic grouping.
Collecting and evaluating the statistics from which one can measure the effectiveness of an email, or an email campaign.
Marketing to the retail and distributive trades.
The marks at the corner of the artwork or printed sheet to indicate where the page need to be trimmed / cut once printed, or possibly showing where to fold.
Twitter is an online social networking and microblogging service that enables users to send and read “tweets”, which are text messages limited to 140 characters. Registered users can read and post tweets, but unregistered users can only read them.
Unique Selling Preposition (USP)
The benefit that a product or service can deliver to customers that is not offered by any competitor: one of the fundamentals of effective marketing and business.
USP is sometimes referred to as Unique Selling Point or Unique Selling Proposition.
A person who visits a website more than once within a period of time. Marketers use this term in contrast with overall site visits to track the amount of traffic on their website. If only one person visits a webpage 30 times, then that web page has one unique visitor and 30 total site visits.
Groups of products that are considered “too delicate” to mention or to advertise. These may include sanitary towels, condoms or incontinence pads.
Where an individual requests not to be included on an email list to which they had subscribed, with subsequent communications. This is also referred to as an opt-out.
A Uniform Resource Locator (URL, or less formally, Web address) is a sequence of characters conforming to a standardised format, used for referring to resources (such as documents and images on the Internet) by their location, which is usually shown in the address bar at the top of a browser.
The overall experience a customer has with a particular business, from their discovery and awareness of the brand all the way through their interaction, purchase, use, and even advocacy of that brand. To deliver excellent customer experience, you have to think like the customer, or better, think about being the customer.
A type of interface which allows users to control a software application or hardware device. A good user interface provides a user-friendly experience by allowing the user to interact with the software or hardware in an intuitive way. It includes a menu bar, toolbar, windows, buttons and so on.
Values and Lifestyles: the categorisation of people according to their way of living, using groupings such as Belongers, Achievers, Emulators, I-am-me, Experiential, Socially conscious, Survivors, Sustainers and Integrators.
See ‘Added value’.
The set of qualities of a good or service that allows it to fulfil the customer’s needs and desires, as opposed to simply benefiting the seller.
A type of marketing that is carried out voluntarily by a company’s customers. It is often referred to as word-of-mouth advertising. Email has made this type of marketing very prevalent. Tools such as ‘send this page, article or website to a friend’ encourage people to refer or recommend your newsletter, company, product, or special offer to others.
A community that exists and interacts online.
The long-term aims and aspirations of the company for itself.
Voice over Internet Protocol. Technology allowing voice communication to be delivered using internet protocol, an alternative to delivering voice communication over a public switched telephone network.
Wireless Application Protocol. Specification allowing wireless devices to interact with information sources. A common application is the use of microbrowsers for wireless internet access.
A product with a large market share of a declining market.
Concept of the World Wide Webs transformation from a collection of websites to a computing platform supporting web applications, harnessing (pooling) the intelligence of its users and allowing users to define how they interact with organisations and each other.
An internet publishing device allowing an individual or company to express their thoughts and opinions. Businesses can use weblogs as a marketing communication channel.
Virtual seminars that attendees can access from their office desk. Often recorded, so they can be viewed at a convenient time.
Large electrical devices for domestic use, such as fridges, freezers and dishwashers. Used to be cased in white enamel, hence the name.
Areas of any company where strategy and authority are vague, and where useful entrepreneurial activity can flourish.
Compare with ‘Black space’.
WI-FI (Wireless Fidelity)
Wireless network connection standards allowing computers LAN (Local Area Network) access via a wireless link.
Online Encyclopaedia Britannia.
Worldwide Interoperability for Microwave Access. Technology to deliver wireless broadband access over distances of up to 6 miles, an alternative to broadband access via a fixed line local loop.
Well Off Older Folk – a demographic grouping.
Word of Mouth (WoM)
The spreading of information through human interaction alone. Some campaigns have used this as key element, for example, the British Gas privatisation’s ‘ask Sid’ promotion.
Also see ‘Viral marketing’.
Young Affluent Parents – a demographic grouping.
Young, Free and Single – a demographic grouping.
Young customers viewed as a marketing opportunity. Typically the term denotes those aged 16 to 24, but various age ranges are in use, from ’12 to 24′ to ‘under 35’.
Young Urban Professional – a demographic grouping.
Zestful Upscale Person in their Prime.