Thursday 22 August 2019

Common Marketing terms and definitions


Brand Equity

It is a qualitative measure of the brand’s positive recognition or goodwill in the minds of the consumers considering the brand as an independent entity. Brand Equity is the tangible and intangible worth of a brand. The degree of premium that a brand can charge on its offering is a direct measure of the equity it possesses with its customers. Brand Equity is a kind of power that the brand has over its competitors or the generic brands and is developed over time.


Brand Image

Brand Image is an image or impression the customers form about a particular brand in their mind which is developed over a certain time period. Brand Image can be defined as how existing or potential customers view the brand and associate with it. Brand image is something that eventually forms in the mind of the customer. Brand image may be the same as brand identity or maybe totally opposite.


Brand Extension
It is the scenario when the firm enters a new product category under the umbrella of the original brand name which is called as the parent brand. Brand extension is usually done in related categories.

Example: Dove which was earlier in the soap category has also come up with Dove Shampoo which is entirely a different category called hair care.


360 Degree Branding

360-degree branding is a branding effort which tries to include the brand identity into a holistic approach so that the brand is in touch with and visible to the customers at all times. It’s all about creating a distinctive brand philosophy which is centered on consumers. It helps to anticipate all aspects of consumer needs. Especially when a brand is fairly new it needs to be present everywhere to build a brand image.


Integrated Marketing Communications (IMC)

Integrated Marketing Communications or IMC involves coordinating the various promotional elements and other marketing activities that communicate with the firm’s customers. The basic IMC tools used to accomplish an organization’s communication objectives are referred to as the promotional mix. Integrated marketing communication uses channels like advertising, sales promotion, PR, personal selling, events, etc


Advertising

 Any paid form of non-personal communication about an organization or its merchandise by an identified sponsor is known as advertising This is often the most important part of marketing communications. The paid aspect means that the space for an advertising message generally has to be bought. Advertisement often involves mass media like broadcast television, radio, newspapers, e-marketing, and magazines that can transmit the message to large groups of individuals.


Sales Promotion

Those marketing activities that provide extra value or incentives to the sales force, distributors or end consumers to generate immediate sales is known as sales promotions. For consumers, sales promotions generally include discounts, coupons, and contests. “Buy one get one free” etc. are well-known methods of sales promotions.


Personal Selling

 In personal selling, the seller attempts to persuade prospective buyers to buy the company’s merchandise or service. Unlike advertising, personal selling involves direct contact between the buyer and seller.


Public Relations

 Public relations refers to non-personal communications regarding a product or service that is not paid for or run under a sponsor. Hence the main advantage of public relations is its credibility and helps in building strong brand equity.


Direct Marketing

As the name suggests, Direct marketing means reaching out ‘directly’ to the customers and potential customers. This can be done through a personal basis or a mass-media basis. The core philosophy of direct marketing is using aggressive tactics to reach customers. Usually, these communications are unsolicited and therefore considered to be annoying and invasive by consumers.


E-Marketing

E-Marketing (Electronic Marketing) are also known as Internet Marketing, Web Marketing, Digital Marketing, or Online Marketing. E-marketing is the process of marketing a product or service using the Internet. Emarkerting not only includes marketing on the Internet but also includes marketing done via e-mail and wireless media. It uses a range of technologies to help connect businesses to their customers.


Promotion


Promotion is one of the four marketing mix elements i.e. price, product, place, and promotion, more commonly known as the 4 P’s of marketing. Promotion means to generate awareness about a product or brand thus, increasing sales and customer loyalty. Promotion includes various elements like advertising, sales promotion, personal selling direct marketing, and publicity.


B2B Marketing


B2B marketing is a practice of business organizations, individuals or government institutions through which they sell off their products or services which in turn are resold or used in the manufacturing of another product or facilitate a service or add value to their operations.


Global Marketing

According to the Oxford University Press’ Glossary of Marketing Terms, Global marketing is “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities, and opportunities in order to meet global objectives"

Example: MNCs like Toyota, Nike, PepsiCo, McDonalds etc. - companies which now have a universal customer base.


Nonprofit Marketing

A marketing campaign employed by a nonprofit organization to spread its message, solicit donations or call for volunteers. A marketing campaign for a nonprofit can involve making logos, slogans and copy as well as to launch a media campaign to expose the organization to the outside world.


Service Marketing
Marketers market different types of entities such as goods, services, events, persons etc. The marketing of services is known as service marketing. Services are essentially intangible and do not result in the ownership of anything. Its production may or may not be tied to a physical product.

Service marketing excellence requires excellence in three broad categories: external, internal and interactive marketing. External marketing covers the pricing, distribution, and promotion of services to consumers. Internal marketing involves training and motivating employees to serve customers well. Interactive marketing describes the employees’ skill in serving the client.