Actual Self the concept, of self image, of what a person is now, as opposed to what he or she would like to become

(that is, the ideal self). See Ideal Self. Ad Hoc Marketing Research marketing research conducted in response to a specific, one-time-only need. Adaptation Approach to Pricing an approach in global marketing in which an organisation allows an affiliate or subsidiary to set the most desirable price, provided it is profitable, in its own region; also referred to as the Polycentric Approach. See also Extension Approach; Geocentric Approach. Adapted Marketing Mix in international marketing, a marketing strategy in which elements of the marketing program are adjusted for the target market in each country. Added Value the increased worth of a firm's offering as a result of marketing; four factors which generate the additional value are features, quality, customer perception (or image) and exclusiveness. Administered Prices cost-oriented pricing in which a firm bases its prices on considerations within the firm rather than on customer considerations. Advertising the paid, public, non-personal announcement of a persuasive message by an identified sponsor; the non-personal presentation or promotion by a firm of its products to its existing and potential customers. See Promotion. Advertising Agency a firm specialising in the creation, design and media placement of advertisements, and in the planning and execution of promotional campaigns. See Full-Service Advertising Agency; Limited-Service Advertising Agency. Advertising Budget the sum allocated in a particular accounting period for expenditure on advertising; also called an Advertising Allocation or an Advertising Appropriation Advertising Effectiveness the degree to which the objectives of an advertisement or advertising campaign have been achieved; the effectiveness is commonly gauged by measuring the effect on sales, brand awareness, brand preference, etc. See Communication Effect of Advertising; Sales Effect of Advertising. Advertising Goal a particular communication task to be accomplished with a specific target audience in a given period of time Advertising Media outlets or vehicles (for instance, newspapers and magazines, television, radio, cinema, posters, etc) used in communication between advertisers and customers. Note that advertising media is a plural term; its singular form is advertising medium Advertising Message

the central, underlying idea or theme within an advertisement Age and Life-Cycle Segmentation A demographic segmentation strategy in which a product-market is grouped into segments based on the basis of age so that the organisation can more precisely target its offerings to the needs and wants of each stage of life of interest to it. In this way, an organisation may develop different products and different marketing approaches for school children, teens, young married couples, mature adults, elderly citizens and so on. AIDA Concept a formula used in selling to produce a favourable response from a customer. The assumption is that the salesperson must first make the potential customer aware of a product; foster interest; stimulate desire; and, finally, encourage action (to purchase). See Formula Selling. Allowances amounts deducted from an invoice in return for prompt payment, large quantity purchase, special promotions etc of goods and services supplied. See Discount. Ambient Advertising signs, posters and other promotional material, often in unusual and unexpected places, inside a shopping centre or retail outlet to generate customer interest and stimulate purchasing Ambush Advertising a form of promotional activity, usually considered unethical and sometimes illegal, in which an organisation exploits some unrelated event such as a political rally or sporting contest by prominently displaying its advertising material; sometimes referred to as Guerrilla Marketing. Ambush Marketing see Ambush Advertising. Aspirational Group a sub-category of a reference group, consisting of individuals (not necessarily known personally) with whom a person desires to be associated. See Associational Group; Contactual Reference Group; Dissociative Reference Group; Membership Group; Reference Associational Group a group, such as a club, society or trade union, or with which a consumer has some association, and which exerts an influence over buying behaviour; the influence of an associational group is usually weaker than that of kinship groups which whom the consumer has closer and stronger ties. See Aspirational Group; Kinship Group; Membership Group; Reference Group. Attitude an enduring favourable or unfavourable feeling, emotion and action tendency towards an issue or subject. Attitudinal Loyalty the loyalty displayed by consumers when they repeatedly buy brands they know and trust; their consistent attitudes result in habitual buying behaviour. Also referred to as behavioural loyalty, routinised behaviour, and habit buying, See Behavioural Loyalty; Habit Buying; Routinised Buying Behaviour.

Attitudinal Research the gathering of data to measure consumers attitudes to a product or brand in terms of their knowledge and opinions ot it (cognitive approach), their overall impressions of it (affect approach) and their degree of loyalty to it (behavioural approach). Augmented Product a product enhanced by the addition of related services and benefits, eg. installation, warranty, maintenance and repair services, etc. See Core Product; Tangible Product. Automatic Vending Machine A form of targeted communication in which an electronic device or technology dispenses, without direct human intervention in the process, commodity items such as stamps, combs, soft-drinks, chocolates and potato chips. Average Cost Pricing a pricing method in which a mark-up for profit is added to the average cost of production. See Cost-Plus Pricing. Attention / Awareness the mental application, awareness, consideration or concentration that a company seeks to induce in consumers when it promotes a product. Baby Boomers the generation of people born between 1946 and 1959, a period of explosive population growth in Australia. Backward Integration a strategy for growth in which a company seeks ownership of, or some measure of control over, its suppliers. See Forward Integration; Horizontal Integration. Bargain anything that is purchased cheaply; an agreement made between two parties in which both have obligations; to negotiate the terms of a sale or business agreement for the purpose of satisfying the parties involved. Bargaining trading off one thing against another in coming to an agreement or bringing a business deal to its conclusion. Behavioural Segmentation the division of a market into groups according to their knowledge of, and behaviour towards, a particular product. Behavioural dimensions commonly used to segment markets include benefits sought, user status, usage rate, loyalty status and buyer readiness stage. Also called Behaviouristic Segmentation. See Segmentation Bases. Beliefs the notions or values of people in a community or society which have a high degree of persistence. See Core Beliefs; Secondary Beliefs; Values Benchmarking comparing the performance of an organisations products or processes with those of competitors or a recognised world leader, usually in another industry; typical performance measures include costs, productivity, process waste, and order processing time. Benefit Concept

the sum of the bundle of benefits in a consumers mind which a particular product or brand delivers. For example, for some plane travellers, the benefit concept of a particular airline might be simply speedy arrival at the desired destination, while for others it might include safety, in-flight entertainment and superior service. Benefit Segmentation the division of a market into groups or segments on the basis of the particular benefit sought by each group from a product. See Behaviouristic Segmentation. Brand a name, sign, symbol or design, or some combination of these, used to identify a product and to differentiate it from competitors' products. Brand Image / Brand Identity the feelings, moods, emotions and connotations evoked by a brand. Also referred to as Brand Identity. Brand Leveraging broadening a company's product range by introducing additional forms or types of products under a brand name which is already successful in another category. Also called Product Leveraging, Brand Extension and Franchise Extension. Brand Life Cycle a concept, building on the product life cycle concept, which states that brands also have a life cycle - introduction, growth, maturity, decline - and that particular brand management strategies are appropriate at each stage. See Product Life Cycle. Brand Loyalty a measure of the degree to which a buyer recognises, prefers and insists upon a particular brand; brand loyalty results from continued satisfaction with a product considered important and gives rise to repeat purchases of products with little thought but with highinvolvement. See High-Involvement Products. Brand Mark the part of a brand which can be seen but not spoken; the logo, symbol or design that forms part of the brand. See Brand Name Brand Name the part of a brand which can be spoken; it may include words, letters or numbers. See Brand Mark. Brand Name Selection Process a systematic process for the development of a brand name that will increase a products chances of success; the process usually begins with a review of the products benefits, target market and planned marketing strategies, and will include such considerations as its likelihood to infringe on existing brand names, the ease with which it can be translated into foreign languages, and the degree to which it can be legally protected. Brand Personality the feeling that people have about a brand as distinct from what the product can actually do Brand Parity the similarity of one brand to another; in mature product categories, there are often few distinct differences between brands and organisations attempt to reduce parity and differentiate their brands with advertising and sales promotions.

Brand Positioning the development of the way in which a company wishes its brand to be perceived by consumers relative to competing brands; the positioning task consists of identifying the brands competitive advantages and communicating the chosen position to the market. Brand Reinforcement activity associated with getting consumers who have tried a particular brand to become repeat purchasers and with attracting new users; brand reinforcement is a key objective of the growth stage of the product's life cycle. See Growth Stage of the Product Life Cycle. Brand Repositioning changing the appeal of a brand in order for it to attract new market segments; brand repositioning may or may not involve modifying the product Brand Switching the changing of support and conviction for one brand to a competing brand. See Brand Loyalty. Break-Even Pricing a method of pricing based on a determination of the number of units of a product that must be sold at each given price in order to recover the total cost of production. Budgeting the process of financial planning of income and expenditure for the firm's various activities - marketing, promotion, advertising, personal selling, etc Business Analysis a stage in the new product development process in which the information gathered in the screening, concept development and testing and marketing planning stages is used to produce break-even and return-on-investment projections. See New Product Development Business Buying Process Like consumers, the decisions organisational buyers make are affected by a range of influences: (i) external influences consisting of marketing stimuli and environmental stimuli (technological, economic, political, social and cultural) factors; (ii) internal influences such as organisational culture, interpersonal and individual differences within the buying group, and the degree of complexity of the buying task; and (iii) the response to these influences (that is, what is bought, in what quantity, from whom, and when.) Marketers study this complex process to understand which influences have greatest impact on the decisionmaking in any given situation. See Business Buyer Behaviour Business Cycles historical patterns of prevailing economic conditions - prosperity, recession, depression and recovery Business Market government departments as well as manufacturers, wholesalers, retailers and similar commercial enterprises that purchase goods and services needed for their operations. Also referred to as Business Customers Buy-Back in international marketing, a practice in which organisations sell plant, equipment or technology to overseas firms and agree to take payment in the form of finished products. Also referred to as Compensation.

Buyer the individual who handles the actual purchase in a buying decision; a purchasing officer. Buyer Behaviour the study of consumers and organisations in relation to their purchase decisions. See Consumer Behaviour; Organisational Buying Behaviour. Buyer Decision Process the stages through which buyers pass as they move from recognition of a need to the actual purchase of a product and experience the feelings which accompany that; these progressive stages are often cited as need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behaviour. See Consumer Decision Process. Buyer Readiness Stage the state of preparedness or willingness in which an individual consumer may be in regard to the purchase of a particular product; the stages are commonly listed as awareness; knowledge; liking; preference; conviction and purchase. Also referred to as Buyer Readiness State. Buyer Role In the buying process, the part played by the actual purchasers of a product as distinct from the users or the person who authorises payment. Buyer's Market a market in which there is an abundance of a particular good or service for sale. By-Product a secondary product produced during the process of manufacturing another. By-Product Pricing a pricing method used in situations where a saleable by-product results in the manufacturing process. If the by-product has little value, and is costly to dispose of, it will probably not affect the pricing of the main product; if, on the other hand, the by-product has significant value, the manufacturer may derive a competitive advantage by charging a lower price for its main product. Captive Product a product made specifically to be used with another, such as a refill with a ball-point pen, a blade with a razor, ink cartridges with a printer, batteries with a torch. Captive Product Pricing a method of pricing the captive element of a product such as a razor or a ball-point refill; often the main product is sold below cost when high profits are expected on the captive component. See Captive Product; Captive Service. Catalogue a list of items, usually in booklet form, arranged in order and often with a description and price. Catalogue Marketing a form of direct marketing in which customers order from catalogues which are sent to them by mail; the ordered goods are shipped directly to them. Cause-Related Marketing

any form of marketing which links a social cause - such as road-toll reduction, responsible alcohol consumption, or bushfire readiness to a an organisations product. Channel Conflict discord among members in a marketing channel. See Horizontal Channel Conflict; Inter-type Channel Conflict; Marketing Channels; Vertical Channel Conflict. Channel Design the way in which the network is constructed to perform product distribution and delivery Channel Length the number of levels of marketing intermediaries used in the channel of distribution. See Direct Marketing Channel; One Level Channel; Two Level Channel; Zero Level Channel. Clutter All non-programming time on radio and TV; this includes time given to advertsing commercials, station or channel promotions, station or channel identifications and program credits. Excessively high clutter levels may result in audience tune-out. See Clutter Level; Audience Tune-Out. Cognitive Dissonance a doubt that surfaces when a buyer becomes aware that an alternative product may offer more desirable benefits than the one purchased. The buyer is anxious, wondering whether the right choice has been made. Commercialisation the final stage of the new product development process in which the decision is made to put the new product into full scale production and to launch it. See New Product Development; Product Launch. Commodity Product a product that cannot be significantly differentiated from competitors' products. Common Market a group of geographically associated countries limiting trade barriers among member nations and applying common tariffs to products from non-members; also known as regional trading blocks. See European Common Market. Comparative Advertising advertising in which a firm names a competitor's product and compares it with its own; also called Comparison Advertising. See Competitive Advertising. Competition-Oriented Pricing a method of pricing in which a manufacturer's price is determined more by the price of a similar product sold by a powerful competitor than by considerations of consumer demand and cost of production; also referred to as Competition-Based Pricing. See Cost-Plus Pricing; Target Return Pricing; Value Pricing. Competitive Advantage that which one firm can do better than another to satisfy consumer needs and wants. Competitors firms vying for patronage of the same market. See Brand Competitors; Enterprise Competitors; Generic Competitors; Product-Form Competitors; Service-Form Competitors. Complementary Product Pricing

the pricing of one product at the optimum level, regardless of cost or profit considerations, so that the demand for another product which is used with it will increase and so maximise the profits from both products together. Concentrated Marketing a marketing segmentation strategy in which the firm concentrates its entire efforts and resources on serving one segment of the market; also called Niche Marketing. Concentrated Segmentation Strategy one of four possible segmentation strategies (with market segment expansion strategy, product line expansion strategy and differentiated segmentation strategy); in a concentrated segmentation strategy a firm targets one product to one segment of the market. See Segmentation Strategies; Market Segment Expansion Strategy; Product Line Expansion Strategy; Differentiated Segmentation. Consumer Behaviour the behaviour of individuals when buying goods and services for their own use or for private consumption. Consumer Durables a classification of consumer products consisting of goods with a long useful life, such as cars, electrical appliances and furniture. See Consumer Non-Durables. Consumer Non-Durables a classification of frequently purchased consumer goods; non-durables are items which are consumed in one use or a few uses; expendables. Consumer non-durables are further subdivided into packaged and non-packaged goods. See Consumer Durables; Packaged Goods; Non-Packaged Goods. Consumer Sovereignty the principle that holds that production and supply are driven by the purchasing decisions of consumers. Convenience Goods a category of consumer goods which are bought frequently, quickly and with a minimum of emotional involvement; the category includes staples, impulse goods and emergency goods. See Consumer Product; Emergency Goods; Impulse Goods; Staples. Core Product the intangible benefit or service offered by a product; for example, the core product offered to a purchaser of shampoo is clean, healthy hair. See Actual Product; Augmented Product Cost-Plus Pricing a simple method of pricing in which a specified amount or percentage, known as the standard mark-up, is added to the unit cost of production of an item to determine its selling price. See Competition-Oriented Pricing; Target Return Pricing; Value Pricing. Cross Elasticity of Demand a measure of the affect a change in the price of one product will have on the demand for a substitute or complementary product. See Elasticity of Demand. Cultural Values ideas, beliefs, attitudes, opinions, principles, etc long cherished by members of a society. Culture

the basic beliefs and values cherished by a society as a whole and handed down from one generation to the next. Customer Delivered Value the difference between total customer value, or the value a customer places on a product, and the total customer cost, or the cost to the customer in money and effort - of making the purchase; customers will usually buy from the firm which they believe offers maximum delivered value. Customer Lifetime Value The difference between the total revenue received from a particular customer and the total cost of attracting, selling to, and servicing that customer. Customer Loyalty the level of faithfulness shown by a customer in continuing to purchase a particular product or brand; customer loyalty is an indicator of the degree of satisfaction the customer has with the product. Customer Retention maintaining the existing customer base by establishing good relations with all who buy the company's product. Customer Satisfaction the degree to which customers are pleased with the product and are likely to purchase the same product, or from the same company, again. See Customer Delight Database Marketing the use of large collections of computer-based information in marketing; the database listings may be reference databases containing information on specific topics; full databases which contain full transcripts of documents or articles being sought; or source databases which contain listings of names and addresses, etc of prospective customers. Decision Making choosing between alternative courses of action using cognitive processes - memory, thinking, evaluation, etc; also called Problem Solving. Demand a measure of those in a market who wish to buy a product and can afford to do so. Demarketing marketing aimed at limiting market growth; for example, some governments practice demarketing to conserve natural resources, and organisations use a demarketing approach when there is so much demand that that are unable to serve the needs of all potential customers adequately. Demographic Characteristics variables within a nation's population, such as age, gender, income level, marital status, ethnic origin and education level; demographic characteristics are commonly used as a basis for market segmentation. See Demographic Segmentation. Demographic Segmentation the division of the heterogeneous population of a country into relatively homogeneous groups on the basis of variables within the population mix; sometimes called State-of-Being Segmentation. See Segmentation Bases. Derived Demand

demand for raw materials in a producer market which is based on the demand for consumer products. Differential Pricing a pricing strategy in which a company sets different prices for the same product on the basis of differing customer type, time of purchase, etc; also called Discriminatory Pricing, Flexible Pricing, Multiple Pricing, Variable Pricing. See One-Price Policy. Differentiated Marketing the division of a heterogeneous market into relatively homogeneous segments so that the needs and wants of the different segments may be served more effectively Differentiation an approach to competitive advantage in which a company attempts to outperform its rivals by offering a product that is perceived by consumers to be superior to that of competitors even though its price is higher; in adopting a differentiation approach, the company seeks to attract a broad market audience. Diffusion of Innovation the idea that some groups within a market are more ready and willing to adopt a new product than others and that the product is diffused through a society in waves; the groups, in order of their readiness to adopt are innovators (2.5 percent of the population), early adopters (13.5 percent), early majority (34 percent), late majority (34 percent) and laggards (16 percent). Diffusion Process the manner in which an innovative technology spreads across a market group by group according to the readiness of each group to adopt it. See Diffusion of Innovation. Direct Selling selling directly to end-users by means of a sales force Discount a reduction off the list price offered by a producer to a buyer; five types of discounts are common: trade, quantity, cash, seasonal and allowances. See Allowances; Cash Discount; Quantity Discount; Seasonal Discount; Trade Discount Dissociative Groups groups with whom an individual does not wish to be associated; groups whose use of a product will deter other buyers. Distribution Costs costs associated with the holding of inventory and the shipment of goods to customers. Early Adopters the group in a market second only to innovators in the speed with which they adopt a new product. See Diffusion of Innovation; Early Majority; Innovators; Laggards; Late Majority. Early Majority the group in a market who are more deliberate than the innovators and the early adopters in making purchase decisions, but less conservative than the late majority and laggards. See Diffusion of Innovation; Early Adopters; Innovators; Laggards; Late Majority. Economic Environment

factors in the economy, such as inflation, unemployment, interest rates, etc., that influence the buying decisions of consumers and organisations. Ego States a proposition in transactional analysis that every person has three mental conditions parent ego state, child ego state and adult ego state, and that at any particular time one of these states is dominant in the personality Elasticity of Demand a measure of the degree to which any change in the price of a product will affect the demand for it. Exclusive Distribution restricting the availability of a product to one particular outlet.