MARKETING

Market research
Key vocabulary for Marketing
The Marketing Mix
MARKET(ING) RESEARCH
Marketing managers need to collect specific
information about markets, and may
commission market research companies to
carry out these studies.
Here are some terms that may appear when
dealing with market(ing) research.
MARKET RESEARCH: KEY TERMS
A sample is a small part of the population, which is taken to
represent the whole.
A questionnaire is a set of questions used in a survey to find
out about peoples opinions, behaviour and practices.
Market research is often carried out through a focus group.
A focus group is a number of people who take part in a
carefully managed discussion, in order to provide data
about attitudes and responses to products and services.
Original data like this is called primary data, while
information collected from periodicals, government
publications, online databases and other sources is known
as secondary data. Therefore, the main methods of
research are field/ primary research and desk/desktop /
secondary research, or quantitative and qualitative
research. The results of the market research are known as
findings, presented at the end of the research task.
MARKET RESEARCH: KEY TERMS
A sample is a small part of the population, which is taken to
represent the whole.
A questionnaire is a set of questions used in a survey to
find out about peoples opinions, behaviour and practices.
Market research is often carried out through a focus group.
A focus group is a number of people who take part in a
carefully managed discussion, in order to provide data
about attitudes and responses to products and services.
Original data like this is called primary data, while
information collected from periodicals, government
publications, online databases and other sources is known
as secondary data. Therefore, the main methods of
research are field/ primary research and desk/desktop /
secondary research, or quantitative and qualitative
research. The results of the market research are known as
findings, presented at the end of the research task.
MARKET RESEARCH: THE PROCESS
STEPS:
1. Identify the problem or the opportunity and the
research objectives
2. Decide on the research methods (field, secondary,
qualitative, quantitative, focus group, survey, etc.)
3. Decide on the research instrument (questionnaire)
4. Choose contact methods (mail, telephone, Internet,
personal interview)
5. Collect data
6. Analyse /mine data
7. Present findings
MARKET RESEARCH: Designing a
questionnaire
It is important to choose questions carefully,
to consider the form, the wording and the
sequence.
Closed questions are designed to limit the
number of types of answers that are given.
Open questions allow the respondent to give
opinions and reasons more freely.
EXAMPLES
Questions designed to obtain a single
answer:
Do you buy your own magazines?
YES NO
Who do you live with?
NOBODY
FRIENDS
PARENTS
RELATIVES
OTHER (please specify)
EXAMPLES
A scaled question
Offers statements with which the respondent can show
the amount of agreement or disagreement, or that
rates the importance of something, e.g. from poor to
excellent.
Teenage magazines are expensive. Select the
response that is closest to your opinion:
STRONGLY AGREE
AGREE
NEITHER AGREE NOR DISAGREE
DISAGREE
STRONGLY DISAGREE
EXAMPLES
A prioritising question
Asks the respondents to rank certain points according to
their personal preferences.
Place the following in order of importance to you.
PHOTOS OF MUSIC STARS
LETTERS PAGE
COSMETICS ADVICE
TRUE STORIES
PROBLEM PAGE
MAIN FEATURE
ADVERTISEMENTS
EXAMPLES
An open question
asks the respondent to write freely on the
subject, allowing for any opinions to be given
that were not picked up earlier:
What is your opinion of this magazine?
Complete this sentence: What I like about this
magazine is
KEY TERMS IN MARKETING
ADVERTISING: any paid form of non-personal presentation and promotion
of ideas, goods, or services by an identified sponsor.
MARKETING: the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational goals.
PROMOTION: the process of communicating with, and influencing,
customers to buy a companys products. It involves creating a clear
identity and image for a product and bringing the products benefits to the
customers notice.
PUBLICITY: involves attracting the publics attention but not necessarily
selling anything specific. It is free of charge.
PUBLIC RELATIONS: the deliberate, planned and sustained effort to
establish and maintain mutual understanding between an organization
and its public. Its main function is to build up a good image and reputation
for the organization.
KEY TERMS IN MARKETING
BRAND: a company or product name, term, sign,
symbol, design or combination of these that
identifies the offerings of one company and
differentiates them from those of competitors.
DIFFERENTIATION: the act of designing a set of
meaningful differences to distinguish a
companys offering something in return.
END USERS: final customers who buy a product.
PROSPECT: a party from whom a marketer is seeking
a response whether it is attention, a
purchase, a vote, etc.
KEY TERMS IN MARKETING
NEED: a basic human requirement, i.e. food, air,
water, clothing, shelter, as well as recreation,
education and entertainment.
WANT: a desire that occurs when a need is
directed to specific objects that might satisfy that
need: e.g., a hamburger is a want that might
satisfy the need for food.
DEMANDS arise when people both want a
specific product and are willing and able to pay
for it.
CONCEPTS
MARKETING CONCEPT: the belief that a company
can achieve its goals primarily by being more
effective than its competitors at creating, delivering,
and communicating value to its target markets. It
resides on four pillars:
1. Identifying a target market
2. Focusing on customer needs
3. Coordinating all marketing functions from the
customers point of view
4. Achieving profitability.
MORE CONCEPTS
PRODUCTION CONCEPT: the belief that customers prefer
products that are widely available and inexpensive.
PRODUCT CONCEPT: the belief that consumers favour
products that offer the most quality, performance, or
innovative features.
SELLING CONCEPT: the belief that companies must sell and
promote their offerings aggressively because consumers
will not buy enough of the offerings on their own.
SOCIETAL MARKETING CONCEPT: The belief that a
companys task is to identify the needs, wants, and
interests of target markets and to deliver the desired
satisfactions better than competitors do but in a way that
preserves or enhances consumers and societys well-being.
CUSTOMER NEEDS AND PRODUCTS
STATED NEEDS: what customers say they want,
e.g., I need sealant for my window panes for
the winter.
REAL NEEDS: what customers actually require,
e.g., a house that is better insulated and
therefore warmer during the winter.
UNSTATED NEEDS: requirements that customers
dont happen to mention, e.g., an easy solution
to insulating the house.
DELIGHT NEEDS: the desire for luxuries, as
compared to real needs.
SECRET NEEDS: needs that customers feel
reluctant to admit, e.g., some people may have
a strong need for social status but feel
uncomfortable about admitting that status is
important to them.
GOODS: physical offerings such as food,
commodities, clothing, housing, appliances, etc.
SERVICES: i.e., airline travel, hotels,
maintenance and repair, and professionals
(accountants, lawyers, doctors)
EXPERIENCES: e.g., a visit to a theme park or
dinner at the most popular restaurant
EVENTS: e.g., the Olympics, trade shows, sports
and artistic performances
PEOPLE: i.e. artists, musicians, rock bands,
celebrity CEOs, and other high-profile
individuals
PLACES: cities, states, regions, nations that
attract tourists, businesses, and new residents
INFORMATION: produced, packaged, and
distributed by schools, publishers, Web-site
creators, and other marketers
IDEAS: concepts such as Donate blood or
Stop household violence that reflect a deeply
held value or social need
MARKETING MIX
PRODUCT decisions include quality, design,
features, brand name, etc.
PRICE decisions include price point, list price,
discounts, payment period
PLACE decisions include channels of
distribution, geographic coverage
PROMOTION decisions include advertising,
direct marketing, public relations
THE 7 Ps
PEOPLE (PARTICIPANTS)
PROCESSES
PHYSICAL EVIDENCE
PRODUCT
PHYSICAL DISTINCTIONS:
FORM: size, shape, structure
FEATURES: i.e. a word processing softwares new text-editing tool
PERFORMANCE QUALITY: the level at which the products primary
characteristics function
DURABILITY: the products expected operating life under natural or
stressful conditions
RELIABILITY: the probability that the product will not malfunction or
fail
REPAIRABILITY: the ease with which the product can be fixed if it
malfunctions
STYLE: the products look and feel
DESIGN: the way all the above qualities work together (it is easy to
use, looks nice, and lasts a long time)
PRODUCT
SERVICE DISTINCTIONS:
ORDERING EASE: how easy it is for customers to buy
the product
DELIVERY: how quickly and accurately the product is
delivered
INSTALLATION: how well the work is done to make the
product useable in its intended location
CUSTOMER TRAINING: whether the company offers
to train customers in using the product
MAINTENANCE AND REPAIR: how well the company
helps customers keep the product in good working
order
BRAND IMAGE
A good brand creates a strong brand image the consumer
perception of what the product or company stands for.
Brands can evoke:
ATTRIBUTES: The car is durable.
BENEFITS: With such a durable car, I wont have to buy
another for years.
VALUES: This company certainly emphasizes high
performance.
CULTURE: I like these cars because they reflect an
organized, efficient, high-quality culture.
PERSONALITY: This car really shows off my stylish side.
USER: That looks like the kind of car that a senior
executive would buy.
Product Life Cycle cf. Kotler, 2001
Characteristics Marketing Objectives Market Strategies
Product
Introduction
Low sales, high cost per
customer, no profits,
few competitors
Create product
awareness and trial
Offer a basic product
Use heavy
promotions to
create trial
Product
Growth
Rising sales and profits,
more and more
competitors
Maximize market
share
Offer product
extensions
Reduce promotion
due to heavy
demand
Product
Maturity
Peaking sales and
profits, stable or
declining number of
competitors
Maximize profit while
defending market
share
Diversify brands
Intensify promotion
to encourage
switching to new
brands
Product
Decline
Declining sales, profits,
and number of
competitors
Reduce expenditure
and milk the brand
Withdraw weak
products
Cut price, reduce
promotion
THE BOSTON MATRIX
HOUSEHOLD
GOODS
CONVENIENCE
GOODS
FAST MOVING
CONSUMER
GOODS
F.M.C.G.
SHOPPING
GOODS/
CONSUMER
DURABLES
SPECIALITY
GOODS/
LUXURY
GOODS
UNSOUGHT
GOODS
PRODUCTS
CONSUMER
PRODUCTS/ GOODS
-
INDUSTRIAL
PRODUCTS
WHITE
GOODS
DRY
GOODS
BROWN
GOODS
PRODUCT: Key Terms
To refer to a companys products, as a group:
PRODUCT CATALOGUE / MIX / PORTFOLIO
To refer to a companys products of a particular
type: PRODUCT ITEM / MODEL / LINE / RANGE
To refer to the way a company would like its
products to be seen in relation to other /
competing products: PRODUCT POSITIONING
PRODUCT PLACEMENT
BRAND
BRAND NAME: the name given to a
product or a group of
products as that it can be
easily recognized.
MAKE: the name of the company
itself
MODEL: the particular type of product
BRAND: COLLOCATIONS
I. BRAND AWARENESS / FAMILIARITY /
RECOGNITION
II. BRAND PROMISE
III. BRAND IMAGE
IV. BRAND IDENTITY
V. BRAND PREFERENCE / LOYALTY vs. BRAND
SWITCHING
VI. BRAND EQUITY
BRAND: COLLOCATIONS
From the companys perspective:
BRAND POSITIONING
BRAND DIFFERENTIATION
BRAND STRETCHING / EXTENSION
BRAND DILUTION
BRAND LEADER / FLAGSHIP BRAND
BRAND X
BRANDED PRODUCTS
MANUFACTURERS
BRAND
PRIVATE BRANDS
OWN BRAND /
LABEL PRODUCT
UNBRANDED
PRODUCTS
GENERIC PRODUCTS
PRODUCT: Informal Register
PLAIN VANILLA
A product lacking
adornments or special
features; basic or ordinary
BELLS AND WHISTLES
Innovative and flashy, but
often unnecessary and
confusing, features of a
product
PRODUCT: COLOURS
Red
goods
Orange
goods
Yellow
goods
RED GOODS: Consumer goods, such as food
products, that are consumed and replaced at a
fast rate and have a low profit margin.
ORANGE GOODS: consumer goods, such as
clothing, that will last for a period of time but
will be replaced, at a moderate rate, because of
wear and tear, desire to change, or change in
season, or at the discretion of the consumer.
YELLOW GOODS: In merchandising,
nonconsumable household goods, such as
refrigerators or ovens, that are expensive and
are usually replaced only after many years of
service. Generally, yellow goods have a high
profit margin.
PRICE: COLLOCATIONS
PRICE BOOM: prices are rising
CEILING: the maximum level of a price
CONTROL: government effort to limit price
increases
CUT/REDUCTION: a reduction in price
HIKE: an increase in price
LABEL/TAG: the label attached to goods
showing the price
LEADER: a company that dictates price
reductions or hikes
WAR: when competing companies
reduce prices in response to each
other
TYPES OF PRICE
FACTORY PRICE
COST PRICE (SELLING PRICE =
PURCHASE/PRODUCTION PRICE)
CATALOGUE / LIST PRICE
MARKET PRICE / RETAIL PRICE / CURRENT PRICE /
SPOT PRICE
NET PRICE VS. CUT PRICE / DISCOUNT PRICE /
BARGAIN PRICE
PRICE: UPMARKET & DOWNMARKET
BASIC MODEL SOPHISTICATED MODEL
ENTRY LEVEL / LOW-END / HIGH-END / TOP-END
BOTTOM-END PRODUCT PRODUCT
MID-RANGED PRODUCT
1. From basic products to high-end products:
MOVE UPMARKET
TRADE UP
2. From sophisticated products to mid-ranged or basic ones:
MOVE DOWNMARKET / DOWNSCALE
TRADE DOWN
PRICE: MASS AND NICHE MARKETS
MASS MARKET / MAINSTREAM MARKET:
goods that sell in large quantities and the
people who buy them
NICHE MARKET:
a small group of buyers with special needs,
which may be profitable to sell to.
PLACE(MENT)
DISTRIBUTION LOGISTICS DELIVERY DISPATCH
Involves arranging for
a product to pass
from one business to
another until it
reaches somewhere,
for example a shop
/store, where people
can buy it.
Involves
physically
collecting,
transporting
and delivering
goods.
Involves
giving the
goods to the
customer.
Refers to the
process of
goods
leaving a
factory or
office.
DISTRIBUTION CHANNELS
DIRECT (telemarketing, mail-order, catalogue
shopping, online shopping, shop-at-home TV
networks )
INDIRECT (distributors, middlemen, resellers,
dealers, wholesalers, retailers)
THE SUPPLY CHAIN
SUPPLIER/ VENDOR
PRODUCER
DISTRIBUTORS
CUSTOMERS
Supplies materials and parts
Supplies finished goods
WHOLESALERS (sell in large
quantities)
RETAILERS (sell to the public)
RESELLERS (esp. for IT)
CONSUMERS
BUSINESSES
SHOPS / STORES / RETAIL OUTLETS / SALES
OUTLETS
CHAIN
STORE
Part of a group of shops,
all with the same name
SHOPS / STORES / RETAIL OUTLETS /
SALES OUTLETS
CONVENIENCE
STORE
A small shop in a
residential area, usually
open long hours
SHOPS / STORES / RETAIL OUTLETS /
SALES OUTLETS
DEPARTMENT
STORE
A shop which has several
specialized departments
SHOPS / STORES / RETAIL OUTLETS /
SALES OUTLETS
DEEP
DISCOUNTER
A supermarket with very
low prices
SHOPS / STORES / RETAIL OUTLETS /
SALES OUTLETS
DRUGSTORE
A shop in a town centre in
the US which sells
medicines; you can also
have coffee and meals
there.
SHOPS / STORES / RETAIL OUTLETS /
SALES OUTLETS
HYPERMARKET
Very large shop with a
wide variety of goods,
usually outside of a town
SHOPS / STORES / RETAIL OUTLETS /
SALES OUTLETS
SUPERMARKET
Very large shop selling
mainly food
SHOPS / STORES / RETAIL OUTLETS /
SALES OUTLETS
SHOPPING
CENTRE /
PRECINCT
A purpose-built area or
building in a town centre
with a number of shops
SHOPPING
MALL
An area with shops
outside towns, having
much parking space
TYPES OF PROMOTION
MEDIA TV
radio
cinema
newspapers and
magazines
Internet
PRINTED MATERIALS inserts
inside magazines
flyers
booklets
leaflets
brochures
catalogues
SPECIAL PROMOTIONS free gifts
limited offers
coupons in
magazines
loyalty cards
special offers
competitions
with prizes
IN-STORE free samples
merchandising
P.O.S. displays
free tasting
OTHER product placement
endorsement
telephone sales
sponsorship
trade fair stands
ADVERTISING
ADVERTISING: (uncount.) the
activity of telling customers about products or
services, or the materials that companies use
in general to do this.
ADVERTISEMENT: a particular piece of
advertising, such as a notice about a product.
(ADVERT, AD)
To place/ put/ run / take out an advertisement
ADVERTISING
ADVERTORIAL
an advertisement in a newspaper or magazine
that is like a written article and seems to be
giving facts rather than advertising a product.
INFOMERCIAL / INFORMERCIAL
a long commercial on television or the
internet that tries to give a lot of information
about a subject, so that it does not appear to
be a commercial.
ADVERTISING: KEY WORDS
COPYRIGHTER
ART DIRECTOR
SLOGAN
JINGLE
LOGO
ADVERTISING BUDGET
ADVERTISING BRIEF
MEDIA PLANNING
SALES
AGENT: given authority to carry out a particular piece
of business on smb.s behalf (estate agent)
BROKER: a person who buys and sells investments or
financial products on behalf of others
Both A and B work independently or as part of their own
companies and receive a fee for their services
DEALER: buys and sells a particular type of product
(art/car/diamond dealer)
SALES REPRESENTATIVE / REPRESENTATIVE / SALES
REP: works as an employee of a company, selling their
goods or services to people in a particular area.
SALE vs. SALES vs. THE SALES
SALE
1. An act or the process of selling sth.:
To close / complete / lose / make a sale
2. An occasion when a shop sells its goods at a lower
price than usual:
The sale starts on 28 December.
THE SALES: period when many shops are selling goods
at low prices
3. An occasion when goods are sold, esp. an auction:
A contemporary art sale
SALE: IDIOMS
FOR SALE: available to be bought
ON SALE: 1. available to be bought, esp.
in a shop or store
2. being offered at a reduced
price
SALES
1. the amount of goods or services sold
quarterly / annual / high / strong / weak / slow sales
To boost / generate sales
2. the business of selling things, the department
of a company that is responsible for selling things
He works in sales.
Sales department / director / manager / staff / team /
force
Sales pitch