Marketing terminology

Professor Benaissi Abdelkrim

Marketing mix

 The marketing mix refers to the set of actions, or tactics, that a company uses to

promote its brand or product in the market
 The 4P’s making up marketing mix are price, product, promotion and place
Price: refers to the value that is put for a product. It depends on costs of production, segment
targeted, ability of the market to pay, supply - demand and a host of other direct and indirect
factors. There can be several types of pricing strategies, each tied in with an overall business
plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a
product
Product: refers to the item actually being sold. The product must deliver a minimum level of
performance; otherwise even the best work on the other elements of the marketing mix won't
do any good
Marketing mix

 Place: refers to the point of sale. In every industry, catching the eye of the consumer and
making it easy for her to buy it is the main aim of a good distribution or 'place' strategy.
Retailers pay a premium for the right location. In fact, the mantra of a successful retail
business is 'location, location, location’
 Promotion: this refers to all the activities undertaken to make the product or service
known to the user and trade. This can include advertising, word of mouth, press reports,
incentives, commissions and awards to the trade. It can also include consumer schemes,
direct marketing, contests and prizes.
 From: https://economictimes.indiatimes.com/definition/marketing-mix
Marketing strategy

 A marketing strategy sets the overall direction and goals for your marketing, and is
therefore different from a marketing plan, which outlines the specific actions you
will take to implement your marketing strategy. Your marketing strategy could be
developed for the next few years, while your marketing plan usually describes
tactics to be achieved in the current year
 From:
https://www.business.qld.gov.au/running-business/marketing-sales/marketing-
promotion/strategy
Market segmentation

 Market segmentation consists of sectioning the target market into smaller groups that share
similar characteristics, such as age, income, personality traits, behavior, interests, needs or
location.

Four components of market segmentation are:

1. Demographic segmentation: The who

 might be the first thing

people
hear
This think
‘market
is perhaps of when they
segmentation’.
the most
straightforward
defining
but it customer
remains way of
groups,
powerful.
Demographic
looks at segmentation
identifiable non-
character
Age
Gender
traits such as:
Ethnicity
Income
Level
Religionof education
Profession/role
company in a
2. Psychographic segmentation: The why

 Psychographic segmentation is focused on your customers’ personalities and

interests. Here we might look at customers and define them by their:

 Personality traits

 Hobbies

 Life goals

 Values

 Beliefs

 Lifestyles
3. Geographic segmentation: The where

 By comparison, geographic segmentation is often one of the easiest to identify,

grouping customers with regards to their physical location. This can be defined in
any number of ways:

 Country

 Region

 City

 Postal code
4. Behavioral segmentation: The how

 Here we group customers with regards to their:

 Spending habits

 Purchasing habits

 Browsing habits

 Interactions with the brand

 Loyalty to brand

 Previous product feedback

 From : https://www.yieldify.com/blog/types-of-market-segmentation/
Market adaptation

 The adaptation strategy is geared towards meeting the needs of the market,
planning all business activities with the aim of efficiently meeting the specific needs
and respecting the values of local consumers
 https://www.google.com/search?
q=what+is+market+adaptation+in+marketing&oq=what+is+market+adaptation+in+
&aqs=chrome.1.69i57j33i22i29i30.43381j0j4&sourceid=chrome&ie=UTF-8
Market penetration and market development

 We use the term to outline two processes. One defines the strategy a new business implements to
enter the market, and the other is for calculating the percentage of a market share a company’s
product can capture
 Market penetration is a strategy that implies using a product or service in the existing market to
build a larger customer base, increase market share, and be perceived as a leader. Companies can
reduce prices, put more effort into promotion, and increase sales volume to reach this objective.
Brands also consider creating more convenient locations for their target market to have a wider
reach
 Market development involves creating a new product or service to satisfy the existing market. The
strategy entails research and development stages and is used by companies with profound
knowledge about their market. These firms are ready to bring new solutions to the emerging
customers’ problems
 From: https://sendpulse.com/support/glossary/market-penetration
Product placement

 Product placement is a marketing technique that promotes a brand by placing the

branded product in a non-advertising context, usually a TV show ...
From: https://www.myaccountingcourse.com › product-place...
Product Portfolio

 Product Portfolio is the entire list of all the products, services, brands, sub-brands
that are sold or offered by a company, taken as a whole, to its potential customers
in a single or multiple geographies.
 The total collection of the products that a company has to offer forms its portfolio.
Now these products vary in reference to the contribution they make to a company’s
profits
 https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/13851-
product-portfolio.html
Product feature

 By product features, we mean the particular characteristics or attributes of

a product that makes it unique from the other products in the market, 
 From: https://www.jigsawacademy.com › product-management
Customer profile

 Before marketing a product to potential customers, you will need to define your 
target customer based on their:
 Lifestyle
 Age
 Location
 Income
 Interests
 Buying patterns
 Purchasing preferences
 Stage of life
Customer retention

 the process of engaging existing customers to continue buying products or

services from your business.
 The best customer retention tactics enable you to form lasting relationships with
consumers who will become loyal to your brand. They might even spread the word
within their own circles of influence, which can turn them into brand ambassadors.

 From: https://www.crazyegg.com/blog/customer-retention/
Customer base

 A customer base is simply defined as your most loyal and engaged customers.
When you have shoppers who consistently engage with your brand that fit your
target market or ideal customer persona, you have a strong customer base. These
shoppers may be loyal to your brand for a number of reasons: it could be because
you offer them a product they want or need, because your brand’s messaging
resonates with them, or they enjoy being involved in your brand community. Either
way, they’re loyal to you, and that’s what defines a customer base. 

 From: https://sendpulse.com/support/glossary/product-positioning
Brand positoning

 Brand positioning is defined as the conceptual place you want to own in the target
consumer’s mind — the benefits you want them to think of when they think of your brand.
 
 In defining a brand’s positioning, it’s useful to think of the following four key components
of a positioning statement:
 Category frame of reference:  What is the competitive context?  With which product
category should the brand be associated?
Brand positoning

 Definition of target market(s):  Who is the brand being built for (i.e. the center of the
targeting bulls-eye.) 

 Statement of the key point of difference: What benefits should the brand stand for and
deliver on?

 Reason(s) to believe: What proof points need to be demonstrated?

Brand identity and brand image

 Brand identity is the visible elements of a brand, such as color, design, and logo, that
identify and distinguish the brand in consumers' minds. Brand identity is distinct from 
brand image,
 A brand is much more than a familiar name or logo that identifies a business, product, or
service and is presented through traditional advertising strategies. A brand
encompasses the consumer's complete experience with both the product and the
company and the mix of associations that develop as a result of these interactions. The
brand image that a company achieves is a powerful tool for gaining market leverage; 
 when a company has created a positive brand image, it can influence its target
audience's buying habits
 From: https://www.investopedia.com/ask/answers/032615/how-does-brand-image-
and-marketing-affect-market-share.asp
Brand extension

 Brand Extension is the use of an established brand name in new product

categories. This new category to which the brand is extended can be related or
unrelated to the existing product categories. A renowned/successful brand
helps an organization to launch products in new categories more easily. For
instance, Nike’s brand core product is shoes. But it is now extended to
sunglasses, soccer balls, basketballs, and golf equipments. An existing brand
that gives rise to a brand extension is referred to as parent brand. If the
customers of the new business have values and aspirations
synchronizing/matching those of the core business, and if these values and
aspirations are embodied in the brand, it is likely to be accepted by customers
in the new business.
Brand extension
 Instances where brand extension has been a success are-

i. Wipro which was originally into computers has extended into shampoo, powder, and soap.

ii. Mars is no longer a famous bar only, but an ice-cream, chocolate drink and a slab of chocolate.

 Instances where brand extension has been a failure are-

i. In case of new Coke, Coca Cola has forgotten what the core brand was meant to stand for. It
thought that taste was the only factor that consumer cared about. It was wrong. The time and
money spent on research on new Coca Cola could not evaluate the deep emotional attachment
to the original Coca- Cola.

ii. Rasna Ltd. - Is among the famous soft drink companies in India. But when it tried to move away
from its niche, it hasn’t had much success. When it experimented with fizzy fruit
drink “Oranjolt”, the brand bombed even before it could take off. Oranjolt was a fruit drink in
which carbonates were used as preservative. It didn’t work out because it was out of
synchronization with retail practices. Oranjolt need to be refrigerated and it also faced quality
problems. It has a shelf life of three-four weeks, while other soft- drinks assured life of five
months.
 1 ......marketing...... mix strategy plan

 2 . . . . . .market . .. . . . adaptation penetration segmentation

 3 . . . . .product . .. . . . . placement portfolio feature

 4 . . .. . customer.. . . . . . profile retention base

 5 . . . . . .brand. . . . . . positioning identity extension