Marketing Terms

Key Term Definition
AIDA

 

An acronym for a model used in marketing and advertisement to define the process of consumer investment in a product, brand or category. It begins with Awareness, where the consumer becomes aware of the subject that is being advertised. Then Interest, where the consumer becomes interested in how the subject would benefit them. Then Desire, where the consumer develops a favourable view of the subject. Finally, Action wherein the consumer buys into the subject.
B2C

 

Stands for Business to Consumer – a direct transaction between a company and a consumer, usually referring to online use. For example, if someone were to buy a product off of a company such as eBay, it would be B2C because the transaction is direct.
B2B

 

This stands for Business to Business – a transaction between businesses, for example manufacturer to wholesaler, or wholesaler to retailer. Instead of defining interaction between a business and a consumer, it defines the interaction between businesses.
Public relations

 

When a famous person or organisation maintains their appearance or relationship with the public so that it is favourable to the public.
Direct marketing

 

The selling of a service or product directly to consumers, for example mail to door (often described as junk mail), calls, leaflets, catalogues, coupons, brochures, and emails. Its effective because it ensures that the consumer is notified of the service or product, rather than a for example a poster in which a consumer may not bother to read. The disadvantage of this however is this form of advertisement is often dismissed as junk.
Personal selling

 

Where a business uses people to promote and showcase a product or service face to face with the customer, which are usually highbrow or big investments. They present the product or service persuasively so as to gain the favour of the consumer. For example car selling where someone will want thorough details of the product, or perfume where someone may want to know what will suit them best according to a professional.
Sales promotion

 

A set of marketing activities to boost the sales of a product or service, such as schemes, discounts, freebies, commissions and incentives  to gain last minute purchases. It can be aimed at either a trade (retailers, wholesalers, distributors, C&Fs) or consumer.
Advertising

 

Drawing attention to a product or service to appear favourable and gain revenue.
Promotional Mix

 

 An element that is one of the 4 P’s in marketing plans which are the 4 key categories to a successful trade. Promotional Mix includes: advertising, public relations, personal selling and sales promotion.
Brand Personality

 

Human attributes that are consistent with a brand so that they appear relatable or favourable which makes the brand appear more favourable to the audience.
Promotion

 

When something, for example a service or product, or person, is supported and encouraged by an activity to achieve advancement.
Place

 

 Place in marketing terms is another one of the 4 P’s required for successful production. Place is the distribution of the product or service so that it can reach the consumer, both through physical and online stores (including wholesalers). It can be sectored into states, regions, towns and countries.
Price  Price in marketing terms is another one of the 4 P’s that are the key components to successful trade. Price refers to the cost element of trade – how much will it cost a trade to afford certain factors such as production, promotion, placement and the price of the service or product and ensure that they still make sustainable profit.
Product

 

The last of the 4 P’s that make up the marketing mix. The product is the tangible or intangible item such as goods or a service created to make both profit and to satisfy the needs of the customer.
Marketing Mix

 

 Marketing Mix is a concept that encompasses 4 necessary components to have a successful trade in business. This is made up of product, price, place and promotion. If all these elements are conducted well a business is more likely to be successful.
Brand Promotion

 

Brand promotion is when a brand reinforces their company to a consumer to appear more favourable than others with the aim of gaining their favour so they choose their brand other others, and may choose their products because of it’s brand.
Brand

 

 An identity for a company, organisation, group, etc. that distinguishes them so that people, i.e. customers, know who they’re buying from/associating with etc.
Added Value

 

 Added value is the price of which a product is sold, minus the cost it took to produce the product. The result figure is the added value in financial terms, as it depicts the profit of selling that product. However, value added is different. This means how valuable the product is to the customer and the value of the product in more general terms.
Target Market

 

 

The specific group of consumers/customers/audience that a product or market is aimed at. For example, the target market for a Bentley car would be a richer target market, with a bigger budget and a higher brow and classy lifestyle.
Market Segmentation  Market segmentation is when the target market is divided up into different types of potential customers based on different characteristics, in which a company will target different methods of marketing. For example a company may use different strategies to target a working class market to a upper class market.
USP

 

 USP stands for Unique Selling Point (or Proposition). It is the defining factor of a product, company or service that differentiates them from any other trade. It is the one benefit of that trade that others do not have in order to gain the favour of consumers. For example, the lowest price in comparison to others, higher quality, or it may be the first ever product, company or service of its kind.

 

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