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8.7: Key Terms

  • Page ID
    • Michael Laverty and Chris Littel et al.
    • OpenStax

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    mass communication that allows companies to reach a broad audience through TV, radio, newspaper, Internet, magazines, and outdoor ads
    image a company promotes and the connotations it fosters of itself and its products
    brand advocate
    someone who is a fan of your products and passes on the word to others
    brand strategy
    image a company conveys to its customers
    bundle of products that is discounted to encourage customers to buy in bulk
    causal research
    identification of cause-and effect-relationships between two or more variables
    step in the sales process in which the salesperson asks for and gets the sale
    conjoint analysis
    survey tool in which respondents must rank, choose, or a rate a number of “conjoint,” or linked, features or benefits
    cost-led pricing
    easiest way to price a product by taking the cost of making the product and marking it up to create profit
    customer-led pricing
    pricing led by what the customer is willing to pay
    digital marketing
    online marketing
    direct mail
    connecting to consumers via email or through printed mailed pieces
    entrepreneurial marketing
    set of unconventional practices that can help start-ups and younger firms survive in competitive markets
    ethnographic research
    use of personal observation of the subject by being immersed in the subject’s environment
    executive summary
    initial section of a business plan document that summarizes the key elements of the entire plan
    expeditionary marketing
    marketing designed to move established companies and their products into new markets and territories
    focus group
    gathering of people, typically six to twelve participants, who come together to discuss a topic presented by a moderator, who usually poses questions and collects qualitative data that can be used to answer questions or define research further
    guerrilla marketing
    creative approaches to marketing that seek to gain maximum exposure through unconventional means
    introductory offers
    using lower initial prices to attract new customers and build a customer base before prices return to their standard amount
    short song or sound that brands a product or company and helps to promote it
    loss leader pricing
    using a below-standard price to attract customers in the hope that they will purchase other, more profitable goods and services
    market analysis
    analysis of the overall interest in the product or service within the industry by its target market
    market opportunity
    unmet need within a target demographic
    market research
    collection and analysis of data related to a business’s target market
    umbrella term given to those activities that companies use to identify consumers and convert them into buyers
    marketing mix
    basic set of possible strategies and approaches that marketers use to reach their target market
    marketing plan
    formal business document that used as blueprint for how a company will achieve its marketing and business goals
    marketing strategy
    company’s game plan for how it will reach consumers and convert them into paying customers
    odd numbers strategy
    psychological pricing strategy that uses odd numbers in the prices to make a product’s price point more attractive to consumers
    penetration pricing
    pricing below that of a competitor’s price
    company’s human resources
    personal selling
    using face-to-face interactions to communicate and influence a customer to make a purchase
    physical environment
    where a service takes place or a product is manufactured
    channels or locations—physical or digital—where products can be found by customers
    (or value proposition) statement of how you want the customer to perceive your company, good, or service
    premium pricing
    charging a price above a competitor’s price
    value that must be exchanged in order for a customer to receive a product or service
    primary research
    research that involves gathering new data
    chain of procedures and/or activities required to provide the product to the customer
    good or a service that creates value by fulfilling a customer need or desire
    profit margin
    amount by which revenue exceeds costs, typically described as a percent
    process of communicating value to customers in a way that encourages them to buy
    public relations
    marketing that focuses on connecting with constituents by developing goodwill
    qualitative research
    use of open-ended techniques such as observation, focus groups, and interviews to gain an understanding of customers’ basic reasons, opinions, and motivations
    quantitative research
    generation of numerical data through techniques such as surveys and questionnaires
    real-time marketing
    seeks to turn immediately available sales data into actionable and timely strategies that target the shifting landscape of consumer tastes and trends
    relationship marketing
    creates customer loyalty through personal interaction and strives for long-term engagement
    sales promotion
    incentives such as coupons and discounts that help attract customers and help them take action
    sales strategy
    plan that the entrepreneur uses to identify and engage a consumer, from prospecting to securing the sale and beyond
    group of people participating in market research
    secondary research
    research that uses existing data
    separating the total population by homogeneous groups of people that have similar tastes, backgrounds, lifestyles, demographics, and culture
    serviceable available market (SAM)
    portion of the market that a business can serve based on its products, services, and location
    situation analysis
    examination of the internal and external circumstances relevant to a particular business
    high-pricing strategy that leverages the newness of a product in order to “skim” the most profits off the top at the beginning of a sale
    social media
    online communication tool for entrepreneurs to connect with consumers, especially younger demographics
    short and catchy positioning statement that quickly communicate some core aspect of the brand to the consumer
    target market
    specific group of consumers for which a company seeks to provide a good or service
    selecting a customer group based on their ability and willingness to buy
    total available market (TAM)
    total perceived demand for a product or service within the marketplace
    act of verifying that a product can be successful with a target audience
    viral marketing
    marketing that uses engaging content in the hopes that viewers will share it on their personal and social media networks
    word-of-mouth (WOM) marketing
    promotion in which a satisfied customer tells others about their positive experience with a good or service

    This page titled 8.7: Key Terms is shared under a CC BY 4.0 license and was authored, remixed, and/or curated by Michael Laverty and Chris Littel et al. (OpenStax) via source content that was edited to the style and standards of the LibreTexts platform.