Faculty of Law, Economics and Social Sciences

S3 EBA Level

GLOSSARY

MARKETING Module
2024/2025 academic year
 Faculty of Law, Economics and Social Sciences
S3 EBA Level

Advertising: The placement and purchase of announcements and persuasive messages in time or space
in any of the mass media by business firms and nonprofit organizations.

Advertising penetration: The percentage of the target market that remembers a significant portion
of the advertising message conveyed by an advertised campaign.

Assortment: A combination of similar and/or complementary products that, taken together, have some
definite purpose for providing benefits to specific markets.

Attitudes: Enduring systems of positive or negative evaluations, emotional feelings, and action
tendencies with respect to an object. Consumer's overall liking or preference for an object.

Audience: The number and/or characteristics of the persons or households who are exposed to a
particular type of advertising media or media vehicle.

Barriers to competition: The economic, legal, technical, psychological, or other factors that reduce
competitive rivalry below the level that would otherwise occur naturally. Barriers include branding,
advertising, patents, entry restrictions, tariffs, and quotas. Product differentiation is a barrier to
competition.

Barriers to entry: The economic, legal, psychological, technical, and other forces that limit access to
markets, and hence reduce the threat of new competition.

Behavior: The overt acts or actions of consumers that can be directly observed.

Brand: A name, term, design, symbol, or any other feature that identifies one seller's good or service
as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one
item, a family of items, or all items of that seller.

Brand awareness: Brand awareness is the extent to which people are able to recall and recognize the
brand. It has two components: brand recall, which is a measure of how well a brand name is connected
to a product class and brand recognition, which is when a consumer recognizes a brand by its attributes.

Brand positioning: Brand positioning is the way the company differentiates itself from competitors and
how consumers identify and connect with the brand. It’s comprised of the key qualities and values that
are synonymous with the company.

Bundling: Offering several complementary products together or offering additional services in a single
"package deal." The price of the bundle is typically lower than the sum of the prices of the individual
products or services included in it.

Business intelligence: The actionable information that comes out of data analytics techniques.
Business intelligence incorporates the entire process of reporting, warehousing, data management,
analysis of future trends and presentation of transactional information, as well as extraction and
loading tools, to help users make better decisions.

Buyers: Buyers are prospects; people who are in need of, or have an active interest in, purchasing a
service or product.

B2B (Business-to-Business): An adjective used to describe companies that sell to other businesses.

B2C (Business-to-Consumer): An adjective used to describe companies that sell directly to consumers.
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Channel of distribution: An organized network of agencies and institutions which in combination

perform all the functions required to link producers with end customers to accomplish the marketing
task.

Competition: The rivalry among sellers trying to achieve such goals as increasing profits, market share
and sales volume by varying the elements of the marketing mix: price, product, distribution and
promotion.

Competitive advantage: 1. (strategic marketing definition) A competitive advantage exists when there
is a match between the distinctive competences of a firm and the factors critical for success within the
industry that permits the firm to outperform its competitors. Advantages can be gained by having the
lowest delivered costs and/or differentiation in terms of providing superior or unique performance on
attributes that are important to customers. 2. (global marketing definition) A total offer, vis-a-vis
relevant competition, that is more attractive to customers. It exists when the competencies of a firm
permit the firm to outperform its competitors.

Consumer: The ultimate user of goods, ideas or services.

Core product: The central benefit or purpose for which a consumer buys a product or service. The core
product varies from purchaser to purchaser.

Customer relationship management: A discipline in marketing combining database and computer

technology with customer service and marketing communications. Customer relationship
management (or CRM) seeks to create more meaningful one-on-one communications with the
customer by applying customer data (demographic, industry, buying history, etc.) to every
communications vehicle.

Culture: The set of learned values, norms, and behaviors that are shared by a society and are designed
to increase the probability of the society's survival. These include shared superstitions, myths,
folkways, mores and behavior patterns that are rewarded or punished.

Customer: The actual or prospective purchaser of products or services.

Demand: The number of units of a product sold in a market over a period of time.

Digital marketing: Digital marketing is any form of communication aiming to persuade people to
purchase a product or service that occurs through some form of digital device.

Direct marketing: Marketing efforts, in total directed toward a specific targeted group--direct selling,
direct mail, catalog or cable--for soliciting a response from customer.

Distribution: The marketing and carrying of products to customers

Diversification: Extends skills or experience from current product or market activities rather than
covering totally unfamiliar territory.

Eighty-twenty principle: The situation in which a disproportionately small number (e.g., 20%) of staff,
products or users generate a disproportionately large amount (e.g., 80%) of a firm's use/profits. A use
analysis should be conducted to determine what the cause is.

Elasticity: The degree that an economic variable changes in response to a change in another economic
variable

Feature: The use of advertising, displays, or other activity, generally by a retailer, to call special
attention to a product, generally for a limited period of time.
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Focus group: A method of gathering quantitative data on the preferences and beliefs of consumers
through group interaction and discussion usually focused on a specific topic or product.

Global marketing: 1. (global marketing definition) A marketing strategy that consciously addresses
global customers, markets, and competition in formulating a business strategy. 2. (consumer behavior
definition) An approach to international strategy that argues for marketing a product in essentially the
same way everywhere in the world.

Goods: A product that has tangible form in contrast to services that are intangible.

Green marketing: 1. (retailing definition) The marketing of products that are presumed to be
environmentally safe. 2. (social marketing definition) The development and marketing of products
designed to minimize negative effects on the physical environment or to improve its quality. 3.
(environments definition) The efforts by organizations to produce, promote, package, and reclaim
products in a manner that is sensitive or responsive to ecological concerns.

Gross rating point (GRP): A measure of the total amount of the advertising exposures produced by a
specific media vehicle or a media schedule during a specific period of time. It is expressed in terms of
the rating of a specific media vehicle (if only one is being used) or the sum of all the ratings of the
vehicles included in a media schedule. It includes any audience duplication and is equal to the reach of
a media schedule multiplied by the average frequency of the schedule.

Growth strategy: Market share expansion is the prime objective under this strategy, even at the
expense of short-term earnings. The firm may seek to expand market share through a number of
alternative routes. First, the firm may seek new users who may previously have been loyal to other
brands, or tended to switch, or were not users of the category at all. The second way in which the
firm can expand its market share is to expand usage by current users: for instance, by identifying and
promoting new uses.

Industrial market: The industrial market (also called the producer market or business market) is the set
of all individuals and organizations that acquire goods and services that enter into the production of
other products or services that are sold, rented, or supplied to others. The major types of industries
making up the industrial market (business market) are agriculture, forestry, and fisheries; mining;
manufacturing; construction and transportation; communication and public utilities; banking, finance,
and insurance; and services.

Influencer marketing: One of the fastest-growing marketing techniques, influencer marketing

programs enlist the assistance of people who have the ear of the company’ target audience to bring its
offers to their attention.

Internal marketing: Marketing to employees of an organization to ensure that they are effectively
carrying out desired programs and policies.

Involvement: The degree of personal relevance a consumer perceives a product, brand, object, or
behavior to have. High involvement products are seen as having important personal consequences or
as useful for achieving important personal goals. Low involvement products are not linked to important
consequences or goals.

Key success factors: The factors that are a necessary condition for success in a given market.

Knowledge: Consumers' meanings or beliefs about products, brands, stores, that are stored in
memory.
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Life style: The manner in which people conduct their lives, including their activities, opinions, and
interests (AIO).

Macroenvironment: The conditions facing a company including demographic economic, natural,

technological, political, and cultural forces.

Market: The set of actual of potential users/customers.

Market area: A geographical area containing the customers/users of a particular firm for specific goods
or services.

Market demand: The total volume of a product or service bought/used by a specific groups of
customers/users in a specified market area during a specified period.

Market development: Expanding the total market served by 1) entering new segments, 2) converting
nonusers, 3) increasing use by present users.

Market positioning: Positioning refers to the user's perceptions of the place a product or brand
occupies in a market segment.

Market profile: A breakdown of a facility's market area according to income, demography, and life style
(often.)

Market research: The systematic gathering, recording and analyzing of data with respect to a particular
market, where market refers to a specific user group in a specific geographic area.

Market segmentation: The process of subdividing a market into distinct subsets of users that behave
in the same way or have similar needs.

Market share: A proportion of the total sales/use in a market obtained by a given facility or chain.

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.

Marketing channel: A set of institutions necessary to transfer the title to goods and to move goods
from the point of consumption.

Marketing ethics: 1. (legislation definition) Standards of marketing decision-making based on "what is

right" and "what is wrong," and emanating from our religious heritage and our traditions of social,
political, and economic freedom. 2. (environments definition) The use of moral codes, values, and
standards to determine whether marketing actions are good or evil, right or wrong. Often standards
are based on professional or association codes of ethics.

Marketing intelligence system: The development of a system to gather, process, assess, and make
available marketing data and information in a format that permits marketing managers and executives
to function more effectively. Marketing data, when analyzed, may yield information that can then be
processed and put into a format that gives intelligence for planning, policy making, and decision
purposes.

Marketing management: The process of setting marketing goals for an organization (considering
internal resources and market opportunities), the planning and execution of activities to meet these
goals, and measuring progress toward their achievement. Comment: The process is ongoing and
repetitive (as within a planning cycle) so that the organization may continuously adapt to internal and
external changes that create new problems and opportunities.
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Marketing mix: The mix of controllable variables that the firm uses to reach desired use/sales level in
target market, including price, product, place and promotion- 4 P's.

Marketing opportunity: An attractive arena of relevant marketing action in which a particular

organization is likely to enjoy a superior and competitive advantage.

Marketing plan: A document composed of an analysis of the current marketing situation,opportunities

and threats, analysis, marketing objectives, marketing strategy, action programs, and projected income
statement

Marketing strategy: A statement (implicit or explicit) of how a brand or product line will achieve its
objectives. The strategy provides decisions and direction regarding variables such as the segmentation
of the market, identification of the target market, positioning, marketing mix elements, and
expenditures. A marketing strategy is usually an integral part of a business strategy that provides broad
direction to all functions.

Microenvironment: The set of forces close to an organization that have direct impact on its ability to
serve its customers, including channel member organizations, competitors, user markets, publics and
the capabilities of the organization.

Mission statement: An expression of a company's history, managerial preferences, environmental

concerns, resources, and competencies. It is used to guide the company's decision-making process,
answering what is its business, who is served, etc.

Mores: The cultural norms that specify behavior of vital importance to society and embody its basic
moral values.

Motivation: The positive or negative needs, goals, desires and forces that impel an individual toward
or away from certain actions, activities, objects or conditions. The inner needs and wants of an
individual--what affects behavior.

Multiple channels: The use of a combination of channels in selling a product or service to reach
different and isolated target markets with different demands for service outputs.

Nonprofit marketing: The marketing of a product or service in which the offer itself is not intended to
make a monetary profit for the marketer.

Norms: The rules of behavior that are part of the ideology of the group. Norms tend to reflect the
values of the group and specify those actions that are proper and those that are inappropriate, as well
as rewards for adherence and the punishment for conformity.

Penetrated market: Actual set of users actually consuming the product/service.

Perception: Perception is the cognitive impression that is formed of "reality" which in turn influences
the individual's actions and behavior toward that object.

Personality: Consistent pattern of responses to the stimuli from both internal and external sources.

Place: In the channels of distribution, the physical facilities point of location.

Point-of-purchase (POP): Promotional materials placed at the contact sales point designed to attract
user interest or call attention to a special offer.
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Point-of-sale (POS): A data collection system that electronically receives and stores bar code
information derived from a sales transaction.

Population: The totality of cases that conforms to some designated specifications.

Potential market: Set of users who profess some level of interest in a designed market offer.

Preemptive pricing: The practice of setting prices low so as to discourage competition from entering
the market.

Price: The formal ratio that indicates the quantities of money goods or services needed to acquire a
given quantity of goods or services.

Product: A bundle of attributes or features, functions, benefits and uses capable of exchange, usually
in tangible or intangible forms.

Product life cycle: The four stages products go through from birth to death: introductory, growth,
maturity, and decline.

Product mix: The full set of products offered by an organization.

Product positioning: The way users/consumers view competitive brands or types of products. This can
be manipulated by the organization.

Promotion mix: The various communication techniques such as advertising, personal selling, sales
promotion, and public relations/ product publicity available to the marketer to achieve specific goals.

Public relations: The form of communication management that seeks to make use of publicity and
other nonpaid forms of promotion and information to influence feelings, opinions or beliefs about the
company and its offerings.

Publics: The groups of people that have an actual or possible interest in or impact on the company's
efforts to achieve its goals.

Reach: The number of people or households exposed to a particular advertising media or media
schedule during a specified time.

Reference group: A group that the individual tends to use as the anchor point for evaluating his/her
own beliefs and attitudes.

Relationship marketing: Marketing with the conscious aim to develop and manage long-term and/or
trusting relationships with customers, distributors, suppliers, or other parties in the marketing
environment.

Sample survey: A cross sectional study in which the sample is selected to be representative of the
target population and in which the emphasis is on the generation of summary statistics such as
averages and percentages.

Selling orientation: A company-centered rather than a client-centered approach to conduct of

business. This orientation tends to ignore what the customer/user really wants and needs.

Service(s): Products such as a bank loan or home security or library loans, that are intangible or at least
substantially so.
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Situation analysis (SWOT): An examination of the internal factors of a company to identify strengths
and weaknesses, and the external environment to identify opportunities and threats.

Social advertising: The advertising designed to education or motivate target audiences to undertake
socially desirable actions.

Social class: A status hierarchy by which groups and individuals are classified on the basis of esteem
and prestige.

Social responsibility of marketing: The obligation of marketing organizations to do no harm to the

social environment and, wherever possible, to use their skills and resources to enhance that
environment.

Strategic market planning: The planning process that yields decisions in how a business unit can best
compete in the markets it elects to serve. The strategic plan is based upon the totality of the marketing
process.

Substitute products: The products that are viewed by the user as alternatives for other products. The
substitution is rarely perfect, and varies from time to time depending on price, availability, etc.

Sustainable competitive advantage: A sustainable competitive advantage exists when a firm is

implementing a value-creating strategy not simultaneously being implemented by any current or
potential competitors and when these other competitors are unable to duplicate the benefits of this
strategy. The sustainability of a competitive advantage depends upon the possibility of competitive
duplication. Invisible assets may allow a firm to sustain a competitive advantage.

Target market: The particular segment of a total population on which the retailer focuses its
merchandising expertise to satisfy that submarket in order to accomplish its profit objectives.

Unique selling proposition (USP): An approach to developing the advertising message that
concentrates on the uniquely differentiating characteristic of the product that is both important to the
customer and a unique strength of the advertised products when compared to competing products.

Value: The power of any good to command other goods in peaceful and voluntary exchange.

Values: The beliefs about the important life goals that consumers are trying to achieve. The important
enduring ideals or beliefs that guide behavior within a culture or for a specific person.

Viral marketing: A marketing phenomenon that facilitates and encourages people to pass along a
marketing message. Nicknamed viral because the number of people exposed to a message mimicks
the process of passing a virus or disease from one person to another.

Wants: The wishes, needs, cravings, demands or desires of human beings.