Brand Identity
The visible elements of a brand such as its logo, color, and design.
Budget
A breakdown of costs associated with a certain project or marketing tactic.
Buying Behavior
Purchase decision making pattern that is a complex blend of needs and desires, and it influenced by a multitude of factors.
Consumer
A purchaser of a good or service in retail.
Customer
A party that receives or consumes products (goods or services) and has the ability to choose between different products and suppliers.
Demographics
The description of outward traits that characterize a group of people, such as age, sex, nationality, marital status, education, occupation or income.
Forecasting
Anticipating what buyers are likely to do under a given set of conditions.
Geographics
Characteristics such as city, state, region, and population size.
Market
The group of potential customers who share common needs and wants, and who have the ability and willingness to buy the product.
Market Leader
A company that has achieved a dominant position, either in scale or influence, within its field. This leading position often comes about because the company was the first to market a certain type of product and, with the protection of a patent, has manage
Market Position
A firm's relative standing to its competitors.
Market Segmentation
The categorization of potential buyers into groups based on common characteristics such as age, gender, income, and geography or other attributes relating to purchase or consumption behavior.
Market Share
The percentage of the total market for a product/service category that has been captured by a company.
Marketing
Coordination of business activities to provide goods and services to meet the wants and needs of customers.
Marketing Mix
The blending of all decisions related to the 4 P's of marketing: product, place (distribution), price, and promotion.
Marketing Plan
A document outlining the marketing strategy for a product including marketing goals and methods for achieving those goals with reference to the aims of the business as a whole.
Marketing Strategy
This contains the company's value proposition, key marketing messages, information on the target customer and other high-level elements; the overall game plan for reaching people and converting them into customers.
Marketplace
Wherever a product is sold to a buyer.
Organizational Objectives
The overall goals, purpose and mission of a business that have been established by its management and communicated to its employees.
Positioning
The position a business holds in customers' mind relative to the competition.
Psychographics
The study of personality, values, attitudes, interests, and lifestyles.
Sales Forecast
The estimated level of sales based on a marketing plan and an assumed marketing environment.
Situation Analysis
The section of the marketing plan that outlines the business' current marketing situation.
Target Market
The specific group of customers that a company aims to capture. They have been identified as people with needs or wants that can be met with the products or services from this company. It is mainly defined by age, gender, geography, socio-economic groupin
Target Market Analysis
Determining who your customers are and designing marketing towards their profile.
Bait and Switch
Attracting customers by advertising a sale on a certain item and then pressuring them to buy a higher-priced alternative.
Break Even Point
The point at which revenue equals total cost. After this point, a business will be making a profit.
Competitor-Based Pricing
A pricing method used to set price for a product or service based on the competitor's product prices.
Cost Oriented Pricing
Uses the cost of acquiring or producing a product and all other business expenses as a basis for the price of that product.
Economy Pricing
A very basic, low-cost approach - nothing fancy, just bare minimum to keep prices low and attract a specific segment of the market that is very price sensitive. The costs of marketing and promoting a product are kept to a minimum.
Market Share
A percentage of total sales in a market captured by a certain company.
Markup
The difference between the cost of a product and its selling price.
Odd-Even Pricing
Setting prices that all end in either odd or even numbers. Odd numbers ($9.99) suggest a bargain. Even numbers ($10) suggest quality.
Penetration Pricing
Setting the initial price low with the hope of saturating the market with the product and gaining market share.
Prestige Pricing
Setting higher than normal prices to suggest the product has status and/or importance.
Price
Numerical monetary value assigned to a product or service.
Price Discrimination
The practice of selling of the same product to different buyers at different prices.
Price Fixing
An agreement between two or more parties, generally considered to be competitors, to set, maintain, and charge a specifies prices for a particular product. It is an unlawful practice in a free market because it can stifle innovation, artificially raise pr
Price Lining
Selling all products in a given category at certain prices. Example: all the jeans in a clothing store may either be priced at $35, $45, or $60.
Pricing Strategy
A method adopted by a firm to set its selling price. It usually depends on the firm's average costs, and on the customer's perceived value of the product in comparison to his or her perceived value of the competing products.
Profitability
Method of good or service pricing in which (in addition to all costs) a certain level of profit is factored in. Also known as profit pricing.
Psycological Pricing
Pricing techniques that change the perception of a product. (Examples: it's a bargain; it's high quality).
Sherman Anti-Trust Act
Legislation passed in 1890 prohibiting certain business activities that the federal government believes are anti-competitive. The legislation has been used to combat monopolies.
Skimming
Setting the initial price high in hopes of capitalizing on the high demand for a new product; designed to gain maximum revenue advantage before other competitors begin offering similar products or product alternatives.
Value
The costing of good or service according to how much consumers are willing to pay for it, rather than upon its production and delivery costs.
Average Mark-up
The sum dollar mark-up of all items sold divided by the number of items sold. This figure will reflect an average gross profit for all items sold.
Bracket Pricing
A price schedule based on the number of cases a retailer orders. The greater the quantity ordered, the lower the price per case. Also called a volume or quantity discount.
Cash Discount
A price reduction for customers who pay their bills on time.
Competition-Oriented Pricing
Basing a company's prices off the prices of competitors.
Conjoint Analysis
A market research method of exploring the relationship between perceived elements of customer value and price.
Consumer Perception
The way in which a consumer views a product, price, company, brand, etc. Perceptions are opinions.
Cost Price
Purchase price of a product or service.
Cost-Oriented Pricing
Uses the cost of acquiring or producing a product and all other business expenses as a basis for the price of that product.
Customer Value
Quantification of the perceived value of the product or service from a customer's view.
Customer Willingess
The maximum price a customer is willing to pay for a product or service.
Demand-Oriented Pricing
A method used when marketers try to determine what consumers are willing to pay for a product.
Discount Price
Lowering the retail price below the normal retail price set originally.
Distribution Channels
A pathway through which the final products of manufacturers reach the end users. If the distribution channel is large, price of the product will be high and if the distribution channel is short, the price of the product will be low.
Dynamic Pricing
Strategy where there is no firm price. Instead, the price changes based on changing circumstances such as demand, target market, and marketing conditions.
Economic Factors
Factors, such as the current state of the economy and government regulations, are key components of establishing a pricing strategy for goods or services.
Every Day Low Prices
Practice in which discounts are eliminated to provide consistently low prices.
Exploit
To take advantage of a situation in a selfish way.
External Factors
Factors such as the nature of the market, competition and demand which greatly impacts the proposed pricing for a product.
Fixed Price
When the normal retail price will not be lowered or raised for a sales promotion or for selling to an individual customer.
Flat Rate Pricing
A pricing method used to set a fixed price for consumption of a product or service over a period of time.
Geographical Pricing
Geographical pricing sees variations in price in different parts of the country or even the world. For example, lobster sales in Montana where rarity value (supply) or shipping costs increase price.
Internal Factors
Factors that impact pricing decisions include internal factors like the marketing objectives for the organization.
Keystone Margin
When the cost of an item is doubled to set the retail price, providing a margin of 50% on retail. (This is 100% Mark-up).
List Price
The selling price of something as stated in a catalog or price list.
Margin Percentage
The difference between the cost and retail price of an item ($ mark-up) as a percentage of the retail price. A $10.00 cost item at 50% margin sells for $20.00 retail.
Markup Percentage
The difference between the cost an retail of an item as a percentage of the cost.
Maximize
To make as large or great as possible.
Multiple Unit Pricing
Selling items in multiples (example: 5 items for $1.99) to suggest a bargain and help increase sales volume.
Perception of Value
The anticipated benefit from a consumer's perspective of a product or service. The customer perceived value stems from tangible, psychological and social advantages.
Power Pricing
A pricing method used to aggressively set high prices to maximize profit, but also take significant volume losses into account.
Predatory Pricing (Dumping)
Selling products at such a low price, even at a loss, to increase market share and eliminate competition only to raise prices once the competitive threat has closed.
Premium Price
An amount paid in addition to the regular market price as a result of an advantage/higher value over competitor products.
Premium Pricing
Establishes a price higher than the competitors. It's a strategy that can be effectively used when there is something unique about the products or when the product is first to market and the business has a distinct competitive advantage. Can be a good str
Price Controlling
A part of systematic price management which main purpose is to monitor and track pricing related efforts and activities.
Price Elasticity of Demand
A measure of the change in demand in response to a change in price of a product or service. Products that have inelastic demand will be highly priced. Products that have more than elastic demand will be priced low. Products that have elastic demand will b
Price Follower
Competitors in the market which follow the price related actions of a price leader.
Price Leader
Dominant competitor in the market who initiates price related actions such as setting, increasing or cutting prices.
Price Segmentation
Offering different prices to different market segments which increases overall revenues and profits, and it is particularly beneficial to industries that have high fixed cost structures.
Price War
A situation in which two or more companies tend to cut prices for competing products to retain or gain market share.
Pricing Function
Places a value on a good or service to produce a profit. Looks at costs, competition and how much customers are willing to pay for a product or service.
Product Bundle Pricing
A method in which several products are offered for one sale, and is often marked at a discounted price compared to each product individually.
Product Characteristics
Include the nature of the product, substitutes of the product, stage of life-cycle of the product, and product diversification. All these factors will affect the pricing strategy.
Profit Maximization
The ability for a company to achieve its maximum profit.
Promotional Pricing
The act of offering a lower price temporarily in order to enhance the effectiveness of product sales efforts to cost sensitive consumers. For example, many businesses will offer promotional pricing as a sales incentive when initially launching a particula
Quantity Discount
A price reduction offered to customers who buy large amounts of a product.
Retail Price
The price of a good or product when it is sold to the end user for consumption, not for resale through a third-party distribution channel.
Return
Proceeds generated by a sale.
Sales Allowance
A type of reduction from the list of an item. Example: receiving a $4,000 deduction from the sticker price for trading in an old car when buying a new car.
Seasonal Discount
Lower-than-normal price offered as an incentive for buyers to make out-of-season purchases for goods or services.
Survival Pricing
Pricing products to cover variable costs to simply stay in business.
Target Price
A price which a buyer or a seller wants to achieve during the negotiation process.
Trade Discount
A price reduction offered by the seller to members in a certain trade channel. If a manufacturer does frequent business with a wholesaler, they might give them a discount on certain products.
Unit Cost
The dollar cost for a single item.
Value
The costing of good or service according to how much consumers are willing to pay for it, rather than upon its production and delivery costs. Comparison of quality vs. price.
Awareness
The percentage of population or target market who are aware of the existence of a given brand or company. 1.) Spontaneous: measures the percentage of people who spontaneously mention a particular brand when asked to name brands in a certain category; 2.)
Brand
A mixture of attributes, tangible and intangible, symbolized in a trademark, which, if managed properly, creates value and influence. Value has different interpretations: from a marketing or consumer perspective it is "the promise and delivery of an exper
Brand Architecture
How an organization structures and names the brands within its portfolio. There are three main types: monolithic, endorsed, and freestanding.
Brand Associations
The feelings, beliefs and knowledge that consumers (customers) have about brands. They are derived as a result of experiences and must be consistent with the brand positioning and the basis of differentiation.
Brand Commitment
The degree to which a customer is committed to a given brand in that they are likely to re-purchase/re-use in the future. The level of commitment indicates the degree to which a brand's customer franchise is protected from competitors.
Brand Earnings
The share of a brand-owning business's cashflow that can be attributed to the brand alone.
Brand Equity
The sum of all distinguishing qualities of a brand, drawn from all relevant stakeholders, that results in personal commitment to and demand for the brand; these differentiating thoughts and feeling make the brand valued and valuable.
Brand Essence
The brand's promise expressed in the simplest, most single-minded terms.
Brand Experience
The means by which a brand is created in the mind of a stakeholder. Some experiences are controlled such as retail environments, advertising, products/services, websites, etc. Some experiences are uncontrolled through journalistic comment and word of mout
Brand Extension
Leveraging the values of the brand to take the brand into new markets/sectors.
Brand Identity
The outward expression of the brand, including its name and visual appearance. The fundamental means of consumer recognition and symbolizes the brand's differentiation from competitors.
Brand Image
The customer's net "out-take" from the brand. For users this is based on practical experience of the product or service concerned (informed impressions) and how well this meets expectations; for non-users it is based almost entirely upon uninformed impres
Brand Licensing
The leasing of a brand name to a company other than the owner of that particular brand. Usually a licensing fee or royalty rate will be agreed to for the use of the brand.
Brand Management
Managing the tangible and intangible aspects of the brand. For product brands the tangibles are product itself, the packaging, the price, etc. For service brands, the tangibles have to do with the customer experience - the retail environment, the interfac
Brand Parity
The perceived sameness in quality and function among competing consumer products of differing brands.
Brand Personality
The attribution of human personality traits (seriousness, warmth, imagination, etc) to a brand as a way to achieve differentiation. Usually done through long-term above-the-line advertising and appropriate packaging and graphics. These traits inform brand
Brand Positioning
The distinctive position that a brand adopts in its competitive environment to ensure that individuals in its target market can tell the brand apart from others.
Brand Valuation
The process of identifying and measuring the economic benefit that is derived from brand ownership.
Branding
Selecting and blending tangible and intangible attributes to differentiate the product, service, or corporation in an attractive, meaningful and compelling way.
Co-branding
The use of two or more brand names in support of a new product, service or venture.
Competitive Advantage
An attribute that allows a firm to outperform its competitors; most often distinguished as either low cost of differentiation.
Consumer Packaged Goods
Describes inventory that is in such a form that is ready for sale to consumers.
Consumer Product
Goods (consumer goods) or services (consumer services) purchased for private use of for other members of the household.
Consumer Protection Laws
Government regulations designed and implemented to ensure fair competition and the free flow of truthful information in the marketplace.
Core Competencies
Is a company's particular areas of skill and competence that best contribute to it's ability to compete.
Corporate Branding
An attempt to attach higher credibility to a new product by associating it with a well established company name.
Corporate Identity
At a minimum, is used to refer to the visual identity of a corporation (company logo, signage, etc.), but usually taken to mean an organization's presentation to it's stakeholders and the means by which the corporation differentiates itself from other org
Counterfeiting
When an organization or individual produces a product that looks like a branded product and is packaged and presented in a manner to deceive the purchaser.
Country of Origin
The country where goods shipped were produced.
Customer Characteristics
All distinguishing, distinctive, typical or peculiar characteristics and circumstances of customers that can be used in market segmentation to tell one group of customers from another.
Customer Relationship Management (CRM)
Tracking customer behavior for the purpose of developing marketing and relationship-building processes that bond the consumer to the brand. Developing software or systems to provide one-to-one customer service and personal contact between the company and
Customer Service
All interactions between a customer and a product provider at the time of sale, and thereafter. Customer service adds value to a product and builds enduring relationship.
Customer Touch Points
Any encounter where customers and business engage to exchange information, provide service, or handle transactions.
Customer Voice
Collective insight into customer needs, wants, perceptions, and preferences gained through direct and indirect questioning. These discoveries are translated into meaningful objectives that help in closing the gap between customer expectations and the firm
Differential Product Advantage
A feature of a product that is valuable to customers and is not found in other products of the same category.
Differentiation
Creation or demonstration of unique characteristics in a company's products or brands compared to those of its competitors.
Differentiator
Any tangible or intangible characteristics that can be used to distinguish a product or a company from other products and companies.
Diversification
A products-market strategy that involves the development or acquisition of offerings new to the organization and/or the introduction of those offerings to the target markets not previously served by the organization.
Diversion
When a genuine product is sold to a buyer in one market/channel and then resold by the same buyer into another market/channel, without the consent or authority of the brand owner, to take advantage of a price arbitrage situation. Definition also applies t
Endorsed Brand
Generally a product or service brand name that is supported by a master brand.
Enhance
To intensity, increase, or further improve the quality, value, or extent of.
FMCG
Fast Moving Consumer Goods. An expression used to describe frequently purchased consumer items, such as foods, cleaning products and toiletries.
Freestanding Brand
A brand name and identity used for a single product or service in a portfolio, which is unrelated to the names and identities of other products in the company's portfolio.
Goods
A product consisting predominantly of tangible values. Will also have intangible values to a greater or lesser extent.
Guarantee
Similar to a warranty, it is intended to correct a problem with a product or service and focuses on a specific aspect of that product or service.
Image
A dynamic and profound affirmation of the nature, culture, and structure of an organization.
Intangibles
Incapable of being touched. Examples: 1.) Assets: trademarks, copyrights, patents, design rights, proprietary expertise, databases, etc. 2.) Brand attributes: brand names, logos, graphics, colors, shapes, and smells.
Launch
The initial marketing of a new product in a particular market. The way in which the initial marketing is carried out greatly affects the product's profitability throughout its life cycle.
Market Grades
The sorting of individual units of a product into well defined classes of quality. The goods are sorted out into different lots in accordance with the specified standards. The established standards lay down the classes of quality of the product. Involves
Market Opportunities
Newly identified need, want, or demand trend that a firm can exploit because it is not being addressed by the competitors.
Market Position
A measure of the position of a company or product on a market. Defined as market share multiplied by share of mind.
Market Segment
A group of customers who a.) share the same needs and values b.) can be expected to respond in much the same way to a company's offering, and c.) command enough purchasing power to be of strategic importance to the company.
Market Share
A company's share of total sales of a given category of product on a given market. Can be expressed either in terms of volume (how many units sold) or value (the worth of units sold).
Market Standards
Setting up basic measures to which the products must conform and taking steps to ensure that the goods actually produced adhere to these measures. Reflect desirable features of a product in terms of its design, weight, color, etc. Means that goods are of
Marketing
A coordination of business activities to provide goods and services to meet the wants and needs of customers.
Masterbrand
A brand name that dominates all products or services in a range or across a business. Sometimes used with sub-brands, sometimes used with alpha or numeric signifiers.
Monolithic Brand
A single brand name used to "masterbrand" all products or services in a range. Individual products are nearly always identified by alpha or numeric signifiers. Companies like Mercedes and BMW favor such systems.
Multibrand Strategy/Multiple Branding
Marketing of two or more mutually competing products under different brand names by the same company. The motive may be that the company wishes to create internal competition to promote efficiency, or to differentiate its offering to different market segm
Negotiation
To deal or bargain with another, as in preparation of a contract or business deal.
Niche (Niche Market)
A distinct segment of a market.
OEM Market
Original Equipment Manufacturers. Consists of companies that use another company's product as a component in their own production. A manufacturer of ball bearings, for example, sells both to customers who build the bearings into machines and to end users
Offering
What a company offers for sale to customers. Includes the product and its design, features, quality, packaging, distribution, etc., together with associated services such as financing, warranties and installation. The name and brand of the product are als
Packaging Design
The design of the pack format and graphics for a product brand.
Parent Brand
A brand that acts as an endorsement to one or more sub-brands withing a range.
Passing Off
The name given to a legal action brought to protect the "reputation" of a particular trademark/brand/get up. In essence, the action is designed to prevent others from trading on the reputation/goodwill of an existing trademark/brand/get up. The action is
Perceptual Mapping Graphic
Analysis and presentation of where actual and potential customers place a product or supplier in relation to other products and suppliers. Most often show only two dimensions at a time, for example price on one axis and quality on the other. There also ar
Positioning
Creation of an image for a product in the minds of different target audiences (the consumers), working to create a unique image compared to competitors.
Power Branding
A strategy in which every product in a company's range has its own brand name which functions independently, unsupported by either the company's corporate brand or its other product brands. Is a resource-intensive strategy, since each brand must be commer
Product
A good or service available to consumers.
Product Brand
A brand which is synonymous with a particular product offering, for example, Cheerios.
Product Bundling
Occurs when two or more products are offered to a customer at a single price.
Product Extension
A good or service added to an existing product line or category that relates to, but is different from, the main product. The use of an established brand name on a new product in a similar category.
Product Idea
Is an idea for a possible product that the company can see itself offering to the market.
Product Life Cycle
Four distinct but not wholly-predictable stages every product goes through from its introduction to withdrawal from the market: (1) introduction, (2) growth in sales revenue, (3) maturity, during which sales revenue stabilizes, and (4) decline, when sales
Product Management
The organizational structure within a business that manages the development, marketing and sale of a product or set of products throughout the product life cycle. It encompasses the broad set of activities required to get the product to market and to supp
Product Mix
The variety of product lines that a company produces, or that a retailer stocks. Refers to the length (the number of products in the product line), breadth (the number of product lines that a company offers), depth (the different varieties of product in t
Product Opportunity
Exists when there is a gap between what is currently on the market and the possibility for new or significantly improved products that result from emerging trends.
Product/Service Management
A marketing function involving developing, obtaining, maintaining, and improving a product or service mix in response to market opportunities.
Quality Assurances (QA)
Often used interchangeably with quality control (QC), it is a wider concept that covers all policies and systematic activities implemented within a quality system.
Rebrand
When a brand owner revisits the brand with the purpose of updating or revising based on internal or external circumstances. Is often necessary after an merger/acquisition or if the brand has outgrown its identity/marketplace.
Relative Market Share
A company's market share compared to the competitors. A large share confers advantages of scale in product development, manufacturing and marketing. It also puts the company in a stronger position in the minds of customers, which has a positive influence
Relaunch
Reintroducing a product into a specific market. The term implies that the company has previously marketed the product but stopped marketing it. The product has usually undergone one or more changes. The product may be technically modified, rebranded, dist
Repositioning
Communications activities to give an existing product a new position in customers' minds and so expanding or otherwise altering its potential market. Many potentially valuable products lead an obscure existence because they were launched or positioned in
Rollout
The process by which a company introduces a new product or service to different geographical markets or consumer segments.
Service
An intangible activity performed by other people in exchange for payment. Example: getting a manicure; or having your car washed.
Service Brand
A product consisting predominantly of intangible values.
Service Management
A system integral of supply chain management that connects actual company sales and the customer. The goal is to maximize service supply chains as they are typically more complex that the supply chain of finished goods. The purpose is to reduce high costs
Service Mix
A business involving aspects of both a tangible (physical) good and intangible service, and where typically the quality of service is more important than the physical product.
Share of Mind
Marketing that is aimed at establishing a brand firmly in place as the first brand people in a market think of when they need what the brand offers.
Share of Voice
The media spending of a particular brand when compared to others in its category.
Sub-brand
A product or service brand that had its own name and visual identity to differentiate it from the parent brand.
Tangibles
Capable of being touched. Examples: (1) assets - manufacturing plant, bricks and mortar, cash, investments, etc. (2) brand attributes - the product and its packaging. (3) brand values - useful qualities of the brand known to exist through experience and k
Top-of-Mind
What is present in the uppermost level of consciousness; the manufacturer or brand that people in market surveys name first when asked to list products in a specific category. Is the highest degree of share of mind. To attain that position, a company norm
Total Quality Management
A management technique to improve the quality of goods and services, reduce operating costs and increase customer satisfaction.
Trademark
Any sign capable of being represented graphically which is capable of distinguishing goods or services of one undertaking from those of another undertaking.
Trademark Infringement
The violation of the terms of trademark of another entity by encroaching on the rights and privileges provided to the entity that owns the property.
Trendsetter
Someone or thing that breaks a traditional mold or routine and gains a following because of it. iMac is an example in design as now office supplies come in the familiar colors and translucent packaging of an iMac.
User Segmentation
Division of potential customers into market segments according to how and for what purpose they use a product. Do they use it for cleaning their teeth or for making cakes (baking powder)?
Value
A principle or concept that guides a company's behavior and choices.
Value of Brands
The premium that accrues to a brand from customers who are willing to pay extra for it.
Vendor
Typically the "supplier" in the supply chain; provides goods or product to a company (customer) to use or sell.
Visual Identity
What a brand looks like - including, among other things, its logo, typography, packaging and literature systems.
Warranty
A written agreement that states the product or service will work as it is advertised.