6.0 Glossary

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Advertising

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A non-personal promotional message paid for by an identified sponsor utilizing media such as television, radio, magazines, newspapers, billboards, and direct mail.

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Behavioral segmentation

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Dividing markets by identifying common responses to products and product features.

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Demographic segmentation

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Dividing markets by characteristics people have in common

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Geographic segmentation

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Dividing markets by where customers are located.

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Market

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The group of potential customers who have similar needs and wants, sufficient buying power, and the willingness to give up a portion of that buying power in order to buy a product or service.

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Marketing

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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 objectives. (American Management Association definition)

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Marketing concept

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The philosophy that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired products/services more effectively and efficiently than competitors do.

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Marketing Mix

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The combination of the four strategies for product/service, price, place and promotion – the 4 Ps of marketing.

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Market position

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The perceived standing of a business or a product in the minds of its customers as compared to the competition.

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Market potential

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The total amount of revenue that can potentially be generated in a specific industry or market.

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Market segmentation

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Dividing the total market into smaller, well-defined groups with similar wants and needs and similar key characteristics.

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Market share

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The percentage of the total sales revenue captured by a firm within a market or industry.

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Personal selling

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Communication between a salesperson and a customer (or customers) intended to influence the customer’s buying decision.

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Psychographic segmentation

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Dividing markets by identifying common interests, attitudes, values, lifestyle, or personality traits among the individuals that constitute that market.

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Public relations

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Activities designed to create a favorable image for the business, its products, or its policies.

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Publicity

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Information about a business or its products distributed through various media at no cost to the business and often not controlled by the business

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Sales promotion

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All promotional activities other than advertising, personal selling, publicity, and public relations designed to stimulate sales and sales effectiveness.

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Target market

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The group or groups of potential customers who have been identified as those most likely to patronize the business and/or buy the product.

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Target marketing

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Identifying market segments with the greatest potential for sales and focusing marketing decisions on satisfying the individuals that make up these segments.

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Warranty

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Assurance by the seller that the product is as it is represented to be or that it will be as it is promised to be.