The BCG Matrix, also known as the Boston Matrix, is a strategic tool used for analyzing a company's portfolio of business units or products. Created by the Boston Consulting Group in the 1970s, this matrix helps companies identify which of their business units generate cash and which utilize it, aiding in the development of overall business strategy.
Brand loyalty refers to the degree to which a consumer consistently purchases a specific brand over other brands. It is influenced by several factors such as quality, price, consumer attitudes, family or peer pressure, and relationships with salespeople.
Bundling is a marketing strategy that combines multiple products or services into a single package offered at a more competitive price.
Buyer behavior is a field of study crucial for understanding how buyers make their purchase decisions, influenced by personality, sociodemographic characteristics, and lifestyle. It plays an essential role in modern marketing strategies.
Cold canvassing is the process of contacting potential buyers in a specific area to solicit sales of one's products.
Cooperative Advertising, also known as co-op advertising, is a strategic partnership between manufacturers and retailers where the manufacturer provides financial support to the retailer for advertising expenditures. This collaboration aims to boost the brand and sales of both parties by combining resources and efforts in advertising campaigns.
A corporate campaign is a program of coordinated advertisements aimed at improving a business's corporate image rather than specifically promoting the company's products or services.
A customer profile is a detailed description of a specific customer group or type, typically based on various demographic, psychographic, and/or geographic characteristics. It is used by businesses to understand and target their audience more effectively.
Differentiated marketing refers to a strategy that entails customizing products and marketing efforts to meet the distinct needs of different segments of consumers.
Discretionary income is the amount of spendable income remaining after the purchase of physical necessities, such as food, clothing, and shelter, as well as the payment of taxes. Marketers of goods other than necessities compete for the consumer's discretionary dollars by appealing to various psychological needs, as distinguished from physical needs.
A strategic marketing approach in which a manufacturer grants a select few intermediaries the exclusive right to distribute its products within specific geographic areas.
A marketing strategy where the same brand name is given to a number of products to encourage recognition, ease the introduction of new products, increase market acceptance, and lower marketing costs.
A focus group is a form of market research where a small group of people, usually 5-10, is asked about their attitudes toward a product, concept, advertisement, idea, or packaging. This detailed feedback helps in improving or tailoring products to market needs.
Geographic Segmentation is a customer market classification strategy based principally on geographic location, facilitating targeted marketing and enhanced customer satisfaction.
A harvesting strategy aims to maximize short-term profits from a product by reducing marketing expenditures and other support, while capitalizing on its established market presence before withdrawing it from the market.
Image advertising is directed at creating a specific image for an entity, such as a company, product, or brand. This form of advertising focuses on building a mental picture in the consumer's mind, emphasizing characteristics like sophistication, reliability, elegance, or luxury, rather than highlighting specific attributes.
An incentive fee refers to a payment or fee given as a motivation to encourage participation, often in situations such as becoming part of a test-marketing audience group. This term is extensively used in various fields including finance, marketing, and business management.
Leader pricing is a strategic reduction in the price of a high-demand product to attract customers to a retail store or to stimulate a direct-mail purchase, potentially inspiring additional full-price purchases. Also known as loss leader pricing.
Market penetration is a marketing strategy aimed at increasing a product's sales within an existing market through more aggressive marketing tactics. It also refers to the degree of a product's purchase within a specific market.
A comprehensive analysis of market profile, encompassing the demographic characteristics of potential buyers for a product or product line.
The marketing concept is a strategic approach to marketing that focuses on delivering value and benefits to customers rather than just promoting products or services.
The Marketing Director is responsible for overseeing all marketing functions within an advertiser's company, including advertising, sales promotion, research, and other marketing elements. This role is pivotal for driving the company's marketing strategy and ensuring alignment with overall business goals.
The Marketing Mix is a cornerstone concept in marketing that involves the strategic combination of four key elements—Product, Price, Place, and Promotion—to effectively meet the needs and preferences of a target market.
A marketing plan outlines a company's strategic marketing efforts to promote its products or services. It serves as a comprehensive blueprint for marketing activities over a specified period.
A marketing strategy is a comprehensive plan designed to promote products or services to target customers effectively, increasing brand awareness, sales, and customer loyalty.
A nondirected marketing approach designed to appeal to all possible users of a product.
A media buyer is responsible for purchasing time and space in various media outlets to deliver advertising messages effectively. Their role is crucial in ensuring that advertisements reach the right audience at the right time.
A short-range marketing strategy aimed at extracting the largest possible profit from an item in the shortest possible time, typically without considering the item’s long-range sales potential.
A model unit refers to a representative product, such as a home, apartment, or office space, used as part of a sales campaign. It demonstrates the design, structure, and appearance of units in a development to potential buyers.
A niche represents a particular specialty in which a firm or person finds that they prosper. In marketing, a niche strategy involves targeting a small but lucrative portion of the market, ensuring efficient marketing efforts and minimal direct competition.
A one-time buyer is a customer who has made only one purchase from a retailer or service provider and has not returned for subsequent transactions. Understanding one-time buyers is crucial for businesses aiming to increase customer retention and repeat sales.
Positioning refers to the strategic process by which a brand or product is marketed in a specific manner in order to achieve a unique, desired perception in the target audience’s mind, relative to competitors.
In advertising and business, the 'Primary Market Area' refers to the major area of editorial and advertising coverage for publications or the main sales and distribution area for a product or service.
Product differentiation is a strategic process employed by businesses to set their products apart from competitors through unique features, branding, and quality.
The Product Life Cycle (PLC) is a theory that postulates the development of a product through various stages, guiding marketing managers in devising effective strategies and decisions. It encompasses introduction, growth, maturity, and decline stages.
A promotion mix is a blend of various promotional methods aimed at achieving marketing objectives, including advertising, personal selling, publicity, and sales promotion.
A promotional allowance is a financial incentive provided by manufacturers to retailers or wholesalers, aimed at boosting the sales of the manufacturer's products through various promotional activities.
Relationship marketing is a strategy designed to foster long-term relationships with customers, suppliers, and distributors, aiming to enhance overall profitability and business success.
Skimming can refer to either an illegal practice of failing to account for some sales or a marketing strategy involving high initial pricing for new products.
A target market is a specific group of consumers at which a company aims its products and services. This group is identified based on various attributes and preferences that align with the company's offerings, forming a crucial aspect of marketing strategy.
Television support refers to the use of television advertising broadcasts as a complementary component of a larger multimedia marketing campaign. This strategy is often employed to direct the audience to additional, more detailed information presented in another medium, such as a newspaper insert.
A geographic location selected for the introduction of a new product, new advertising campaign, or both. The use of a test market allows advertisers or manufacturers to evaluate the product performance on a small scale, and to assess the marketing plan for the product before a broader rollout.
A trade allowance is a producer discount given to distributors or retailers as a promotional effort to encourage sales. Retailers pass along the discount to the consumer, which promotes higher sales volumes. Though it can reduce producer profits, this practice is widely followed in many industries.
Variable pricing refers to a marketing strategy that allows different prices to be charged to different customers or at different times. This strategy is common among industries like airlines, hotels, and certain niche market sellers.
A special reduced rate offered for the purchase of multiple radio or television time slots to be broadcast at intervals within a specified period of time, typically within a day.
A condition that may apply to the point at which an advertisement or advertising campaign is no longer effective. The wearout factor depends on the frequency of communications, the target market, the quality of the advertising copy, the novelty of the campaign, and the variety of messages used.
The Wheel of Retailing is a retail marketing process through which original low-price discounters upgrade their services and gradually increase prices. This evolution into full-line department stores creates an opportunity for new low-price discounters to enter the market, perpetuating a continuous cycle.
