A 2 Z Marketing & Advertising. ABC:  A classification used for different social groups. Originated in UK. Above the line:  That part of a company’s.

A 2 Z Marketing & Advertising

ABC:  A classification used for different social groups. Originated in UK. Above the line:  That part of a company’s marketing budget that is pent on advertising in the media as opposed to other activities like sales promotion & direct mktg.

ADOPTION  Process by which consumers adopt a new product. It can only happen after they have passed through the following stages:  Awareness: They r first made aware of the new product’s existence  Interest: Their interest in the product is achieved by advertising & promotion  Evaluation: They evaluate the product in relation to their needs & desires  Trial: They have been hooked enough to go out & try the product  Adoption: They continue to buy the product regularly

ADSTOCK  The sum total of the effect of an advertisement, based on an assumption that ads leave a trace for sometime after they have actually been perceived.  This continuing effect is measured quantitatively by applying a gradual decay rate to measures of the ad’s impact while it is showing.  Its done by using DAGMAR [Defining Advertising Goals for Measured Advertising Results]

ADVERTISING  A key part of mktg, but far from being the sum total of it.  It is the use of media to inform consumers about something and/or to persuade them to do something.  In effect, it brings products & consumers together, and then modulates the relationship between them.

Advertising agency  Research  Planning & servicing  Creative  Media  Production  Traffic  Accounts Advtg/sales ratio:  Total expenditure on advtg in a period expressed as a percentage of the total sales for the period.

Advertorials: After sales service: AIDA:  Oldest mnemonics in mtkg. It describes the stepping stones to successful communication  get Attention  hold Interest  arouse Desire, and  obtain Action

Alternate demand  for products that can be substituted for each other. e.g.:  Tea & coffee as drinks  Buses & trains as transportation  Gas & electricity as heating fuel  Mags & TVs as home entertainment Animal testing:  Testing of household products or medicines on animals before the products are sold to humans.

Animatic:  The moving bits in a TV ad., or a rough commercial made from a storyboard A&P / A&SP  Advertising & Promotion Atomistic Test:  Separate testing of individual elements of the design of a new ad or packaging.  e.g. – testing only the jingle of the TVC

Attitude  The collection of beliefs & feelings that together influence a consumer’s buying behaviour.  Marketing specialists try to understand them in order to present products in a favourable light, or try and change it.  E.g. – when Honda first decided to introduce its motorcycles into the US the company was faced with a hostile attitude to the product – motorcycles were seen as dangerous and associated with violent gangs. Advtg was based o the slogan “u meet the nicest people on a Honda”

Attributes:  The characteristics of a product that r imp. to consumers.  E.g. Aroma, flavour, caffeine content & price for instant coffee Flavour, colour, smell, thickness, saltiness & texture for soup  Part of the marketer’s skill is to communicate to each group of consumers the attributes that most appeal to it.

Audit  A survey of the sales of a product, at different retail outlets, by price, size, and so on.  A C Nielsen  Development of laser scanning helps the process ABC [Audit Bureau of Circulation]  Publishes regular audited statements of newspapers’ & magazines’ circulation figures Automat:  A vending machine that sells goods automatically.

Awareness  The ability of individuals to remember a particular ad.  Prompted  Spontaneous [Unprompted] Baby boomers:  The generation of consumers born in the year immediately after the second world war. Bait & Switch  Retailer making the customer switch to a product of his choice for more profits

Banded Pack:  2 or more items of the same product are bound together and sold at a price less than the combined price of the items. Eg. Buy 2 get 1 free, 3 for the price of 2 etc. Below the line  Any promotional activity other than advertising in the media – DM, sales promotion etc.

Benefit segmentation  The division of a market into groups of consumers who are looking for the same benefit from a product/brand.  Eg. Group of people looking for prevention of tooth decay vs. others looking for whiteness in a toothpaste Billboard  Boards on which bills are stuck  Also known as hoardings Billing  A measure of the size of an advertising agency

Blind envelope  An envelope enclosing a mail which doesn't have a see thro address window Blind test  Used for new product  Only way to measure factors such a s smell, taste & texture on a comparative basis  Bcoz brand names, pkg, et influence the consumers Blister Pack  A form of pk. where in the inside products show thro  Consumers can see properly what they are buying

Body copy  The main text in a piece of ad., as opposed to the headlines or the details in footnote Brand  A name, term, symbol or design [or a combination of them] which is intended to signify the goods and services of one seller or group of sellers and to differentiate them from those of competitors.  Derived fm. brandr which means to burn, hence the “branding” of live stock

 Family brands r product names which all contain the name of the company Eg.: Heinz Tomato Ketchup, Heinz Baked beans Cadbury’s Smash, Cadbury’s Fruit n Nut  Individual brands stand alone Eg.: All P&G products – Ariel, Flash, Pampers  Some companies use diff. brand name for different product line called line branding Eg.:  Sears Roebuck sells appliance under the name Kenmore and it tools under Craftsman

 Umbrella brands r used to endorse the products while at the same time allows it to develop its own brand personality  Brands can also be owned by middlemen [dealer/manufacturer brand]  Brands can also be people  Eg. Madonna, Sachin Tendulkar Brand Image  The aura behind a particular brand Brand Loyalty  Sustained loyalty of consumers to the particular product/brand

Brand Management:  Also known as product management  A mgmt. system developed by P&G in 1930  Method to manage individual brands in multi-product companies  Thro this u set the mktg. obj, advtg. obj., target market etc Brand Stretching  Stretch one brand name across a large no. of products &/or services  Need to be careful, as negative of one can rub off on the entire portfolio

Brand Valuation  Process of attaching a value in a company’s balance sheet to its brands  It includes tangible as well as intangible assets  Philip Morris bought the Kraft food company in 1988 for $12.9 bn.. It was 4 times the value of its tangible assets.  Following points are used as benchmarks which valuating any brand  Its leadership in the market  Its stability/longevity  The nature of market:is it large and stable like [toothpaste] or subject to fast changing fashion [like green hair dye]

 Its internationality [national/international]  The trend for the brand  The marketing support fir the brand  Its protection in law: as a registered trademark etc B2B advertising  Manufactures of machine tools  Different medium like trade journals etc. Buyer’s market  Any market in which supply exceeds demand

Buying cycle/Purchase cycle  The frequency with which products are purchased/bought Cannibalization  When increased sales of one brand result in decreased sales of another within the same product line [same company] Captive market  Group of consumers that has no choice  Monopoly or situation like food delivered in the flight/train

Cascading  A marketing strategy favoured by Japs, in which a small well- defined market segment is penetrated first before the manufacturer cascades into other markets Circulation & Readership Classified ads. Cluster Analysis  A statistical technique that sorts a sample into number of groups [or clusters] that have similar features in common

Cognitive Dissonance  The dissatisfaction that occurs when there is a difference between a consumer’s expectation and the product delivery Cold Calling Collarette  A cardboard collar around the neck of a bottle that carries an ad or a sales promotion

Communication Strategy  The choice of diff. Ways in which marketers set out to communicate with their markets Comparative advertising  The controversial practice of advertising a product by comparing it-to its advantage-with its competitors Concentrated Segmentation  Niche marketing

Concept testing  A technique to test new ideas/concepts at an early stage in the development of a product Conjoint Analysis  It is a technique for testing the strength of the various combinations of features for a product in order to develop a picture of the combinations that is best liked by consumers Consumer profile  A description of the age, social class and other characteristics of consumers of a given product/brand

Cost per thousand/mile [CPT/CPM]  Convenient way of comparing the effectiveness o different media Counter trade  A form of international trading that gets around the difficult of one party being short of tradable currency:  Barter  Compensation deals [part in goods & part in acceptable currency]  Counter-purchase [promise of using the currency to purchase the buying country’s goods]  Buy-back deals

Coverage  The % of a Target Market that has at least one opportunity to see an advertisement during a particular campaign Cross selling  Placing complementary products close to each other  Eg. Women’s skirts close to their blouses Customer  A person who buys ur product  Different from consumer Customer proposition  The general idea that a product aims to convey to a potential customer  7up – drink me and ull feel fresh & clean

DAGMAR  Defining Advtg. Goals for Measured Advtg. Results Data Mining  Complex extraction and manipulation of electronic data in order to enhance the mktg. Process Day After Recall [DAR]  Method of analyzing the impact of advtg. By finding out what % of people can remember it on the day after it has appeared De-marketing  Discouraging consumers from buying or consuming  cigarettes

Demographics  Facts about the composition of a population  Age, sex, family size, family income, occupation, education, religion, race, nationality Depth Interview Derived Demand  Eg. – demand for industrial goods is derived from the demand of the end consumer Desk Research  Research using secondary data that can b found by somebody sitting at a desk  Internet has dramatically increased the scope for Desk research  Field research – to get primary data

Diary Panel  Consists of a no. of consumers who use diaries to keep regular record of all their purchases of a no. of selected products  This is normally up for sale Direct Response advtg.  The sort of advertising which has a tel no that customers can call immediately to order the goods or services Disposable Income Distribution  The process of getting products to consumers

DMU  Decision Making Unit Drip Campaign  A campaign where the ads are shown infrequently over a long period of time  Opposite for burst Dumping  Offering goods for sale n a foreign market at prices lower than those prevailing in their domestic market

Early Adopters  Those people who are quick 2 buy and try new products & services E-Commerce  Electronic commerce – commerce conducted on the internet EFFIE awards  Annual awards presented by the New York chapter of the American Marketing Association to advtg. Agencies and their clients for the quality & effectiveness of ads.  Hong Kong – Golden Junks  Turkey – Glass Apples

Elasticity  Relation of one variable with another Electronic Point of Sale [EPOS]  Electronic gadget to scan the barcodes  EFTPOS – Electronic Funds Transfer at the Point Of Sale  Gadget to e3nable people to pay via plastic cards Empty nesters  Families whose children have flown the nest & set up their own independent families  50-60 age group End User

Fact book  A file of info about a product’s history. Typically it contains: Data on the product’s sales, distribution and competition A profile of its customers Any relevant market-research findings A detailed record of the product’s performance over time in relation to the marketing effort made on its behalf

Family Life Cycle  Young single people  young couples with no kids  young couples with their youngest child under 6  couples with dependent kids  older couples with no kids at home  Older single people FMCG  Kind of products that r usually sold in supermarkets and which move off the shelves quickly, like toothpaste, chewing gum etc. Flagship [brand]

Flanker brand  A new brand that is introduced by a company which already markets a brand in the same product category Flash Pack  Pack on which there is a promo flash Gap Analysis  Procedure for discovering marketing opportunities represented by gaps in a market.  3 imp areas in which to look for gaps: A neglected consumer group A deficiency in existing product offerings an area suitable for exploitation because of some new technological development

Generation X  Americans born between 1960-1980 Generic names Global products  Coca Cola, McDonald’s, IBM, Levis Habit Buying  Inertia  Implies absence of dissatisfaction with a brand rather than any positive loyalty Hard Sell  Aggressive selling Harvesting Strategy  Reaping of short-term profit from a product prior to withdrawing it from the market

Hierarchy of effects  The steps in the process of persuading somebody to buy something  Awareness  Knowledge  Liking  Preference  Conviction  Purchase High Involvement product Hit rate  Sales man makes a sale at every 50 households. The hit rate is 0.02

Home Page  First [introductory] screen of info at any company’s website Household  People who live together in a single house  Constitute the fundamental unit in much MR Image  The picture, or feeling, or association which the brand name evokes in a person’s mind.  Volvo means safety  Jaguar means class  Made in Japan – high Quality, High Tech, High price

Impulse Buying / purchase  Magazines, match box, sweets, chewing gums Industrial goods  Goods that are purchased mainly for use in the production of other goods, in contrast to consumer goods.  Machine, tools, lubricants etc Innovators  Consumers who r the first to try new products  Well educated, well informed, well to do, open minded, upwardly mobile and reachable by mass media

Percentage of the total population  Innovators 2.5%  Early adopters13.5%  Early majority34%  Late majority34%  Laggards16% Integrated Communication  Co-ordination of all aspects of product promotion Internet Intranet Jingle Junk Mail

Lifetime Value [LTV]  The return from an individual customer is not based on the profit from a single transaction, but rather from the whole series of transaction in his entire lifetime Line Extension  Increasing a product line by adding variations of an existing brand  Runs the risk of weakening the brand name/image  Well known brand of hand lotion might have variants fir dry skin, sensitive skin, detergent damaged skin etc

Line Filling  Adding more products to an existing product line to leave no gaps for competitors to move into  When product lines are increased by moving up market or down market to attract new customers, the process is called Product Stretching List Broker  An organisation that gathers lists of names and addresses and sells them to marketers for DM

Low involvement products  Products that is purchased without much deliberation  Poor purchasing decision doesn't have significant consequences  Eg. Lux –introduction of film stars to make it more interesting Market Segmentation  Groups of consumers with quite detailed characteristics in common r called ‘segments’ and the process is called ‘segmentation’  Demographic – 60+, high income etc  Geographic – urban  Psycho graphic – social class, lifestyle, personality  Usage Market Share

Marketing  The mgmt process responsible for identifying, anticipating and satisfying customer requirements profitably Marketing dept. Marketing budget

Marketing mgmt - responsibilities  Finding out the facts [MR]  Making predictions from research [Forecasting]  Putting into effect changes arising from research [New product development]  Making sure they are products that customers want to buy [Brand mgmt]  Deciding on quantities [Budgeting]  Deciding at what price goods should be sold and for what profit [Pricing policy]  Moving goods from their point of manufacture to their point of consumption [Distribution]  Selling [Sale Mgmt]  Persuading thro communication [Advertising]

Marketing mix  4 Ps  Product/Price/Place/Promotion  4 Cs  Customer Value  Cost to the consumer  Convenience for the buyer  Communication Mass communication  Old-fashioned term for the use of the mass media [TV, Print etc.] Mass market  Opposite of a segmented market Me too  Product with no clear differentiation

Media  The vehicles that carry advertising Mass Media  Those vehicles which reach a national audience Media Analysis  Study of effectiveness of various media in reaching an audience Media buying  The purchase of time or space in media for the showing of ads. Media Planning Milking  Short-sighted mktg strategy that aims to make as much profit as possible in a short term

Mother-in-law research  Casual research that involves asking ur friends, colleagues even ur mother-in-law National Launch New product development [NPD] Niche marketing  Selling product or service to a small, narrowly defined market.  Originally known as concentrated segmentation Non profit marketing  Application of marketing to the non-profit sector - NGO

Odd-Even pricing  Pricing strategy wherein the product price is not rounded off – BATA Off-card rate  Selling of advtg space at a price below what's mentioned in the rate card Omnibus research  Results of survey that is done o a regular basis and is made available to firms which have specific MR needs  Carries a number of different passengers Open ended questions Opinion leader  Person who influences the purchasing behaviour of others – mainly thro word of mouth

Opinion Poll  Consumer research concerned specifically with politics Orange goods  Category of consumer goods that a consumer changes at a moderate rate, either bcoz of wear & tear or bcoz of changing fashion Clothing Overkill  An intensive marketing effort which ripples off hostile & negative returns Packaged goods  Goods packed by manufacturers & not sold loose

Packaging  Wrapping in which the goods are presented for sale Paired comparison  Technique in MR where in the consumers are given a set of products and r asked to choose from  Coke-Pepsi  Coke-7 up Panel  Sample of consumers on the MR agency’s contract Pareto Principle  80/20 rule

Patchwork product  A product which has so may problems that no sooner is one resolved than another appears Patent  A type of protection for intellectual property Penetration  % of a target market that has bought a particular product at least once Perception  Process by which an individual receives, selects and interprets information Perceptual mapping  Technique borrowed from psychology that helps marketers to understand the market structure

Personal Selling  Direct face to face communication between a buyer and a seller Piggy backing  Expression used in DM to refer to the practice of placing DM material into other businesses’ envelopes  Product leaflet in an electric bill Pilot  A trial undertaken on a modest scale in order to test the feasibility of something much bigger Pitch  A ppt in the hope of winning a contract

Point of sale Portfolio analysis  A way to evaluate a company’s products in order to decide how best to allocate resources among them Positioning  Attempt by marketers to give a product a certain image that will help it to be perceived as having distinctive features or benefits Poster  Dangler / Buntings PR Predatory pricing  Practice of cutting prices with the specific intention of stealing market share from the competitors

Premium offer  A sales promotion that offers a customer to obtain one product, either free or at an attractive price, by purchasing another. Pre testing  A MR technique used to predict the effectiveness of an ad before its released Price ring  A group of producers who fix prices among themselves  Oil / Cola etc Price sensitive  Low-price commodity-type goods are very price sensitive, high-price luxury goods are not

Price war  gain mkt.share by cutting prices Pricing Prime Time  That time of the day/night when there are most viewers watching TV or listening to the radio Product  Anything that can be offered to a market that might satisfy a need or want. It may be an object/service/place/organisation/idea Product class  A large grouping of products that have similar functions  Cigarettes, automobiles, computers etc

Product differentiation  Practice of making one product distinguishable from others  Can be on the basis of quality/price/styling/service etc Product elimination/deletion  Orderly process of withdrawing a product from the market Product Life Cycle  Use of biological analogy for products  They r born – product launch  They grow in sale  Mature – sales growth stops  Decline – sales fall off  Same for markets – called demand life cycle

Product mix  Whole range of products offered to consumers by a single company Productivity  Relationship between sales & expenditure Profit centre  An organisational unit or function within a company that is charged with producing a profit Promotion  A special effort to increase the sales of a product Promotional Budget

Prospect  Any individual to whom a marketer aims to sell a product/service Psychographics  A process for segmenting consumer markets that is based on social class, lifestyle and personality Public Relations  The means by which an organisation tries to develop a mutual understanding between itself and its public Push & Pull strategies Qualitative research  MR that is designed to gain insights into a consumer's attitudes, perception and motivation

Quantitative research  MR that uses sampling techniques in order to arrive at quantitative results. Quantity discount  A price reduction given to customer who buys in large quantities Random sample Rate card Reach  The proportion of a total market that an advertiser wants to reach at least once in an advertising campaign Recall test  A test used by MRers to find out how much consumers remember about particular ads

Reference group  A social group on which consumers model their behaviour Re launch Repositioning Retailer  The place where products and consumers finally get together Rolling Launch  The process of gradually introducing a new product into the market Run of Paper  Advertisements that appear in newspaper/magazines in no particular order/position

Sales forecast Sales incentive Sales literature Sales promotion  A special short-term event or offer dreamed up in order to launch a product/or otherwise Sampling Secondary data  All information used by market researchers that has not been gathered directly by them  Includes all data collected by govt. etc Seller’s market Buyer’s market Shelf life

Simulation  The acting out of a real-live marketing situation for the purpose of testing a product Skimming  Pricing strategy often used when a new product is introduced  At the time of launch it is price insensitive and therefore marketers charges a higher price Slogan Social marketing  Mktg applied to ideas, causes or practices  Anti-smoking, seat belt Soft sell

Solus site  Retail outlets that carry the product line of one company only, such a s petrol stations  Solus user – people using products from only one company Spam  Junk e-mail Sponsorship Stock control  The mgmt of the inventory in retail ad wholesale outlets Storyboard Strategic Business Unit [SBU]  An autonomous division within a company that is responsible for the marketing of one of the company’s major product ranges

SWOT analysis  SW are internal to the company  OT are external Syndicated Research  Large-scale research that is undertaken by a market-research firm of its own accord, and is then offered for sale Target Audience  The audience to whom a particular advertising campaign is directed  defined in demographic terms, by sex, age, income, and so on. Target Market

Teaser  A short ad that doesn't reveal the name of the product being advertised  merely advertises that there is more advertising to come Television rating  A measure of the popularity of a TV programme based on various methods of research Test marketing  An attempt to test a new product’s performance in the marketplace by launching it in a limited area. Testimonial  The use of a well-known person to endorse a product

Toll-free numbers Trademark  A name, design or logo peculiar to a business or its products Traffic  The dept in an ad agency that controls the flow of work between one dept and another Unique Selling Proposition  One unique feature that differentiates a product from another and which can be communicated easily to consumers through advertising

Usage & Attitude [U&A]  A comprehensive study of a market, including quantitative measures of actual consumer behaviour & qualitative measures of consumers’ attitude to different products in the market Variable pricing  The selling of the same product or service at different prices depending on the time or location. Voice Over White goods  Washing m/cs, refrigerators, freezers etc Word-of-mouth advertising

Yuppy  Sociological classification  Yuppy – Young Upwardly Mobile Professional Person  Dinkies – households with Double incomes and no kids  Droppies – Relatively ordinary professionals preferring independent employment situations  Puppy – Previously Upwardly Mobile Professional Person Zap  The practice of using a remote-control device to switch back & forth between TV channels - surfing

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A 2 Z Marketing & Advertising. ABC:  A classification used for different social groups. Originated in UK. Above the line:  That part of a company’s.

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A 2 Z Marketing & Advertising. ABC:  A classification used for different social groups. Originated in UK. Above the line:  That part of a company’s.

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Presentation on theme: "A 2 Z Marketing & Advertising. ABC:  A classification used for different social groups. Originated in UK. Above the line:  That part of a company’s."— Presentation transcript:

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