Marketing terminologySteve Toms is professor of marketing

This glossary of 379 marketing terms is designed to complement
student research in Steve Toms' graduate marketing classes

Reference sources and contributors 

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Internet terms

Advertising metrics  |  Ways and means to evaluate, compare, and contrast the effectiveness and efficiency of Internet promotions: Click-through, click-through rate (CTR), conversion rate, cost-per-click (CPC), cost-per-action (CPA),  customer acquisition costs, hits, hybrid models, impressions, page view, pay per click (PPC), pay per lead (PPL), pay per sale (PPS), site stickiness, surround session, unique visitors, and website traffic. (Also see Cost per thousand, Reach, and Frequency)

Affiliate marketing  |  Using a network of partners to market a company—usually internet-based in which a company rewards or compensates an affiliate for each customer directed to it. Affiliates can include blogs, shopping sites, and comparison sites

Agile marketing  |  Term used for marketers that handle/adjust to the dynamic (ever-changing) shift or change in attitudes and behavior among various target markets due to changes in the environment, technology, economy, and competition. Ex: Facebook acknowledges the value of instant messaging and videos that can be uploaded within minutes. (Also see Social marketing)

Appscriptions  |  Mobil application trend in the medical industry that allows consumers to track, monitor, and manage their own health. This includes tracking medications, prescriptions, appoints, test results, and email interaction with their physician

Augmented reality (AR)  |  Mix or real world and computer-generated imagery or audio to simulate a real situation or environment. This allows the reader/potential customer to interact or react with advertisement. Used in print and electronic promotion (webcams on the Internet)

Avatar  |  Digitally-engineered graphic identity (often cartoon caricatures) that Internet users select to represent themselves when chatting, instant messaging, or participating in on-line forums or networks

Blog marketing  |  Process that advertises a website, business, brand, or service via a blog (website on which the a writer shares personal opinions, activities, and experiences). This includes ads or recommendations that appear or are placed on blogs

Bounce rate  |  Number of visitors to an e-commerce website. Tells web owners if visitors are finding what they want and whether they're sufficiently interested to click for more content

Buzz marketing  |  Low-cost word-of-mouth viral marketing technique that captivates an audience. Relies on key opinion leaders and trendsetters to disseminate information to a select group of consumers, often through rumor or innuendo in an informal or social group setting.. Effective with Generation X and Y consumers who do not trust advertising messages. (Also see viral marketing)

Call to action  |  Motivation/requirement to get website visitors to participate, whether filling out a form or signing up for a newsletter

Calm technology  |  Making things easier/simpler for website visitors to avoid information overload, instead funneling them to content of interest through filters. Ex: Creating music or video playlists to stream at a later date

Conversion rate  |  Percentage of customers to purchase a product or service. Also includes percentage of website visitors to sign up for a newsletter, register for membership, or apply for a credit card

Conversational marketing  |  Use of social media to promote products and services by creating an ongoing public dialog on forums and blogs. For example, live chats with cast members of TV show, designed to promote their next episode

Crowdsourcing  |  Practice of funding services, ideas, or content by soliciting contributions from large groups, especially the online community. It's also a marketing activity useful in promoting products and services > crowdfunding

Digital immigrant  |  Those NOT raised in a technology-savvy world, but are forced to comply. Ex: Jitterbug is a cellphone targeted to senior citizens

Digital marketing  |  Use of Internet-connected devices to engage customers with online product and service marketing/promotional programs. Includes mobile phones, iPads, and other Wi-Fi devices. (Also see Social marketing)

Digital native  |  Individuals that grew up with social technology, thus making the online world an integral part of their daily lives. They are the principle reason why savvy businesses now focus on social media marketing

Doorway page  |  Homepage created to rank well among search engines, usually containing limited information. Visitors will often only see a call to action, such as "Click here to Enter." (Also see Landing page)

E-marketing  |  Activity of promoting a product in electronic media format, such as internet ads, pop up links, e-commerce cell text, or email messages

Electronic media  |  Includes television, radio, internet, DVD (anything not film- or paper-based)

Emoticons  |  Combination of text characters designed to reflect facial expressions and convey simple meanings. Examples:  :-)  = smile;  :-(  = sad;  ;-)  = wink  Or, emoticons are found in special downloadable fonts on the Internet (google "emoticon fonts"). They can be used as promotional tools to convey opinions about products and services -- especially in social media

Freemium  |  (Combination of free and premium) When a product or service, such as a digital application for a smart phone or tablet, is provided free of charge, but a premium is charged for advanced features or functionality

Gamification  |  Use of gaming concepts to motivate or drive certain behaviors from a target audience. Much like continuity programs, organizations offer awards, points, and other specific offers when customers check in on their websites. It's an incentive, or reward, for multiple visits

Guerrilla marketing  |  Unconventional methods of performing marketing activities (primarily promotion) on a low budget. It is up to the "guerrilla marketer" to be creative to generate product publicity. It can take many forms, such as social media (pop-up ads on Facebook and Twitter or  video clips on YouTube). These tactics are utilized by both small and large-scale companies. (Also see Buzz marketing and Viral marketing)

Hashtag  |  Key word or short phrase used primarily in social media platforms to create trending items. Displayed without spaces and with a number symbol (#) in front. Ex: #marketingrocks. Functions as a filter or hyperlink to other responses that include the same word or phrase

Heat map  |  Graphic representation of data where varying degrees of a single metric appear by color, such as tracking clicks on a marketer's website.

HTML banner ad  |  Form of Internet promotion featuring information or special offers for products and services. These small space "banners" are interactive: when clicked, they open another website where a sales can be finalized. The hosting website of the banner ad often earns money each time someone clicks on the banner ad.

Impression  |  Singlular display or viewing of a particular ad or web page. Some search engine ad fees are based on the number of impressions; others are PPC (number of clicks).

Inbound marketing  |  (where the customer comes to you) Passive sales technique the relies on the customer to find a product (as opposed to marketer-directed promotional efforts to communicate with potential customers). Achieved through website content personalization, media monitoring, and lead nurturing

Instagram marketing  |  Social media platform for sharing and editing photos and video: a process used by a variety of businesses to provide interactive hash-tagging to increase brand recognition

Keyword effectiveness index  |  Compares the number of searches for a key word, providing Internet marketers the ability to include these terms/words on their websites

Landfill marketing  |  Large volumes of unsolicited or poorly-targeted marketing messages (SPAM), created with little strategic thought or purpose

Landing page  |  A website page used to collect relevant data from those interested in the content featured on that page. Also known as Lead-capture page. Often used for invitation-only and special offer promotional programs that feature exclusive offers or discounts. A unique method to evaluate effectiveness of Internet marketing programs

Like-gate  |   Online barrier that requires a user to first "Like" a brand's page before being able to access specific content that could include special limited time offerings, special sales, and other promotions, thus allowing the brand marketer to stay in touch with target customers

Linkbait  |  Content such as articles, videos, or podcasts to which other website wish to establish a link. Often noteworthy  items of interest that provide valuable information or unique points of view

Moppers  |  mobile shoppers who use cell phones and other devices such as iPads to browse on-line stores, comparison shop, and get recommendations from friends

Mousetrapping | Use of Internet browser tricks to keep a visitor captive at a site, often by disabling the "Back" button or generating pop-up windows (not too marketing-oriented, for sure)

Netiquette  |  Proposed code of proper behavior when communicating via the Internet, not only with email, but for comments posted on social networking sites. Of concern to those whose postings might be judged by employers, customers, and suppliers (Some rules at Social Media and More and Albion's Core Rules of Netiquette)

Netnography  |  Adapting established anthropological research to the Internet. Campbell's' soup used it to study online customer behavior towards its product, resulting new recipes

Permission marketing  |  Building an ongoing relationship of increasing depth with customers based on approval to send or receive email newsletters, catalogs, and other promotional incentives to gain brand recognition and status. Mostly used by on-line marketers to invite consumers to take part in defining the range of services to be offered

QR codes (Quick Response)  |  Digital graphic links found in magazine ads, webpages, billboards, and practically anywhere a marketer wishes to advertise his business. Read by cell phones and other digital devices with cameras to display additional information or promotional offers to potential customers

Pay-per-click  |  Internet ad model used to direct traffic to websites. Advertisers pay the website owner when the ad is clicked. Search engines provide advertisers the opportunity to bid on keyword phrases relevant to their target market

Peer-to-peer marketing  |  Testing attributes of products and services to promote brands among younger (Generation Y) youth-oriented markets via social and mobile interactions, particularly on college campuses

Pinning  |  Every time an individual pins an article or image, it gets shared with others that have chosen to follow that account. Followers can then "like" a pin and continue sharing

Post virality  |  Number of posts/stories/comments created from a posting divided by the number of unique people reached. Ex: A post reaches 1,000 people/hits: 10 "liked it," 15 posted comments, and 7 shared it with others. Post virality is 3.2% (32/1000 X 100). Used to compare and analyze factors that optimize performance

Re-targeting  |  Tracking website visitors, often with small embedded coding on the visitor's computer called "cookies." Then displaying relevant banner ads relating to products and services on websites previously visiting as surfers visit other websites

Short message service marketing (SMS)  |  Use of text messaging on mobile devices to sell products and services

Social marketing (social networking)  |  Seeking to increase the acceptability of a social idea, cause, or practice in a target group or vested public. Ex: Oklahoma State University used social marketing to broaden its image as a conscious global solutions-oriented university. Both enrollment and alumni donations increased. Beyond shortening the distance between friends, Facebook is also an advertising site: Click "like" and you advertise to everyone in your network

Social media marketing  |  Various methods of obtaining online traffic and brand exposure through socially-based or driven websites. Blogs, videos, social book marketing sites and other social online communities often go viral (rapid attention and exposure).. Those who work to effectively leverage these efforts are often referred to as social mediologists

SoLoMo  |  Blend of social, local, and mobile targeting trends to target customers with content designed to be shared via social networks, based on their location (via smartphones, tablets, or other mobile devices). (Also see Social marketing, just above)

Spheres of influence  |  Identifying and addressing factors (events, persons/groups, etc.) that can sway a customer's evaluation and purchase decision of a company's products. Examples include postings on Facebook, Twitter, Instagram, blogs, magazines, and recognized consumer advocate individuals and groups

Splash page  |  Branding/introductory page or screen before you enter the main homepage on a website. Usually designed to prompt attention and make the viewer feel that the website has what's needed. It sets the tone and mood of the browsing experience

Spin  |  Often a heavily-biased portrayal of an event or situation. Often used in PR campaigns to create and support favorable impressions among vested groups, such as customers, investors, or a specific community. It can also imply disingenuous, deceptive and manipulative tactics

Superstitial  |  a web-based advertisement format that combines flash and other animation technology with Java Programming to deliver video-like commercials

Video game marketing  |  activities that generate product sales via gaming consoles. This includes digital advertising while playing games, attending trade shows, watching movie trailers, TV commercials, and online or printed materials. Online gaming characters include Mario, Pac Man, and "Soap" MacTavish of Grand Theft Auto

Vine'ing  |  Short 6-second video loop that makes it easy to film, upload, and share videos on social media sites. The term itself describes the act of posting a vine clip, currently used by companies such as Dunkin Donuts, Samsung, and Target

Viral Marketing  |  Any on-line advertising that relies primarily on word of mouth to gain brand name recognition. Viral Marketing can create the kind of product or service explosion many companies need to grow. It's also highly unpredictable

Webromming  |  Act of going to a physical location (store or shop) after browsing on-line

Web traffic  |  Number of hits or unique visitors that a website receives. This traffic results from marketers' efforts to drive more people (potential customers) to their sites

YOLO: "You only live once"  |  Viral quote used primarily by young girls, based their attitudes and opinions that the world revolves around them ("me")


The marketing concept reduces risk

Abandonment rate  |  Number of incomplete transactions (or abandoned shopping carts). Can be caused by misleading ads, such as promoting low prices, BUT requiring customers to  purchase a different or more of a product to get that price. (Also see Transaction)

Absence thinking  |  Pondering what might be missing or needed (what's not available or lacking in marketing utility). Harkens to Peter Drucker's quote: "Business has 2 functions: innovation and marketing." Absence thinking is the innovation that marketing bring to providing solutions such as designing a folding table that doesn't take up space when not in use. (Also see utility)

Accessory  |  (see Features)

Acting out  |  Activities engaged in by consumers during purchase decision-making, such as feeling the weight of the product, inspecting ingredients, and reading instructions. Savvy marketers must anticipate these expectations as part of the product utility. (Also see Utility)

Advertising  |  Paid form of a non-personal communication by industry, business firms, nonprofit organizations, or individuals delivered through the various media. Advertising is persuasive and informational and is designed to influence the purchasing behavior and thought patterns of the audience. Advertising may be used in combination with sales promotions, personal selling tactics, or publicity. (Also see Exposure)

Advertising elasticity  |  Change in sales that result from each monetary unit spent on advertising.
Formula: (∆Q)/(Q)÷(∆A)//(A)
Q is quantity sold
A is ad expenditure
∆Q is change in quantity sold
∆A is change in ad expenditure
Ex: Rockwell Tools leveraged ad elasticity and increased sales by 25%

Advertising metrics  |  Ways and means to evaluate, compare, and contrast the effectiveness and efficiency of Internet promotions: Click-through, click-through rate (CTR), conversion rate, cost-per-click (CPC), cost-per-action (CPA),  customer acquisition costs, hits, hybrid models, impressions, page view, pay per click (PPC), pay per lead (PPL), pay per sale (PPS), site stickiness, surround session, unique visitors, and website traffic. (Also see Cost per thousand, Reach, and Frequency)

Advertising network  }  Intermediary between advertisers and publishers that sells web properties (space) to advertisers. Often an efficient way to reach social media audiences. Click here for 21 links to ad networks

Advertising slogan  |  Catchy words or phrases that help consumers remember a particular product or service. They tend to reflect the product's sustainable competitive advantage or unique selling proposition in simple 2-3 word phrases or jingles. Through repetition over time, a marketer can establish top of mind awareness and recall

Advocacy advertising  |  Communication aimed at espousing a point of view, usually about controversial issues. Ads can be directed at specific targets, such as political activists, media, consumer groups, government agencies, or competitors

Affiliate marketing  |  Using a network of partners to market a company—usually internet-based in which a company rewards or compensates an affiliate for each customer directed to it. Affiliates can include blogs, shopping sites, and comparison sites

Affinity marketing   l   Any number of marketing activities targeted to individuals sharing common interests. Ex: an auto accessories manufacturer targeting readers of motoring magazines

Aggregation  |  Form of segmentation that assumes most consumers are alike.
(Also see Segmentation and Homogeneous marketing and products)

Agile marketing  |  Term used for marketers that handle/adjust to the dynamic (ever-changing) shift or change in attitudes and behavior among various target markets due to changes in the environment, technology, economy, and competition. Ex: Facebook acknowledges the value of instant messaging and videos that can be uploaded within minutes. (Also see Social marketing)

Allowances  |  Incentives used to push products through the channel to wholesalers and retailers. These are usually in the form of either additional product supply or money (discounts or extended payment terms)

Ambush marketing  |  A covert promotional strategy used by a non-sponsoring organizations to capitalize on the popularity and prestige of its product or service by giving the false impression that it is a sponsor. Nike and Pepsi piggybacked on the atmosphere during the World Cup during which their ads gave the illusion that they were sponsors of the event, even using some of the players in their ads

Americanization  |  Conformation to American standards and practices by foreigners or immigrants to the United States. This shift towards the American culture has an impact on mainstream entertainment, consumer trends, and consumer needs. With targeted marketing practices, Americanization can also take place in other countries outside of the United States

Appscriptions  |  Mobil application trend in the medical industry that allows consumers to track, monitor, and manage their own health. This includes tracking medications, prescriptions, appoints, test results, and email interaction with their physician

Assorting  |  Putting together a variety of products to give a target market what it wants, as in selecting various or different item for a gift basket or first aid kit

Attention | A momentary attractions to a stimulus, something someone senses via sight, sound, touch, smell, or taste. Attention is the starting point of the perceptual process in that attention of a stimulus will either cause someone to decide to make sense of it—or reject it.

Attitude  |  A person's point of view toward something (feelings, values, mores)

Augmented reality (AR)  |  Mix or real world and computer-generated imagery or audio to simulate a real situation or environment. This allows the reader/potential customer to interact or react with advertisement. Used in print and electronic promotion (webcams on the Internet)

Avatar  |  Digitally-engineered graphic identity (often cartoon caricatures) that Internet users select to represent themselves when chatting, instant messaging, or participating in on-line forums or networks


B2B  |  Business To Business – Business conducted between companies rather than between a company and individual consumers. Ex: A firm that makes parts that are sold directly to an automobile manufacturer. (Also see Transformation and Transaction)

B2C  |  Business To Consumer – Business conducted between companies and individual consumers rather than between two companies. A retailer such as Walmart is an example of a B2C company. (Also see Retailer)

B2G  |  Businesses that sell products and services (or information) to government or government agencies. U.S. Federal Government spends approximately $530B annually for a wide range of products and services.

B-roll  |  Promotional tactic designed to enhance and increase exposure for a marketer's product or service. Video clips are often provided to media outlets (TV, satellite, Internet news sources) for use when covering stories or events. This can also include photos (screenshots), used as background images as the newscaster is reading the story

Bait and switch  |  Dishonest and illegal tactic to attract potential buyers based on attractive special promotional offers (bait); then attempt to sell a more expensive product (switch)

Backward integration  |  Actions taken to acquire greater control over suppliers. Ex: Starbucks formerly purchased coffee beans from a supplier in Colombia; it now operates its own farm in China to control the quality and cost of its beans

Banner Ad (see HTML Banner Ad)

Barter  |  Process of exchanging goods or services for other goods or services without the exchange of money. Often used by small business with limited cash flow or limited lines of credit

Behavioral Targeting  |  Practice of targeting and ads to groups of people who exhibit similarities not only in their location, gender or age, but also in how they act and react in their online environment: tracking areas they frequently visit or subscribe to; subjects or content or shopping categories for which they have registered. Google uses behavioral targeting to direct ads to people based on the sites they have visited

Benchmarking  |  Comparison of an organization's practices and performance against those of others. Goal to identify and strive for "best practices" through measured performance outcomes

Benefit  |  A desirable attribute of a good or service, which customers perceives that they will get from purchasing and consuming/using it. Whereas vendors sell features ("a high speed 1/2" drill bit with tungsten-carbide tip"), buyers seek the benefit (a 1/2" hole).

Benefit segmentation  |  Use of data to define (often narrow) target market segments according to similarities or differences in their unmet needs

BEP  |  Break Even Point – Sales quantity at which the firm’s total cost will equal its total revenue

Bias  |  Inserting opinions, or skewing data to mean other than what they say. To avoid bias, use percentages and avoid using biased words that are not qualified with data. To combat bias, ask: What is your statement based upon? (Also see Frequency words)

Birdyback  |  Distribution system requiring the transfer of cargo containers from truck to aircraft (also referred to as fishyback (truck to ship) and piggykback (truck to rail and other transportation options)

Black market (Underground economy)  |  Business transactions between sellers and buyers of goods or services that are often not recorded on a financial statement. Thus, an illegal action. Ex: The recent release of Apple's iPhone5 motivated some Chinese to purchase the new products and travel to China where they were resold on the street for hundreds more than the U.S. price

Blind testing  |  Researching/testing knowledge and preferences without disclosing the product or service name

Blog marketing  |  Process that advertises a website, business, brand, or service via a blog (website on which the a writer shares personal opinions, activities, and experiences). This includes ads or recommendations that appear or are placed on blogs

Blue Ocean Strategy  |  Creating new market space that attempts to make a competitor irrelevant.
Ex: Cirque de Soleil expanded beyond the boundaries of traditional circus acts with its themed Vegas entertainment offerings. It has no competitors

Bounce rate  |  Number of visitors to an e-commerce website. Tells web owners if visitors are finding what they want and whether they're sufficiently interested to click for more content

Brand  |  A unique design, sign, symbol, words, or a combination of these, employed in creating an image that identifies a product and differentiates or positions it from competitors. Over time, this image becomes associated with a level of credibility, quality, and satisfaction in consumers' minds. Thus brands stand for certain benefits and value. Legal name for a brand is trademark and, when it identifies or represents a firm, it is called a brand name.  (Also see differentiation and positioning)

Brand architecture  |  Method by which a marketer can organize and manage various brands (often terms "sub brands"). Ex: In addition to Coke's various flavored colas, it also owns Sprite and Odwalla

Brand element  |  Those factors that help to uniquely define a product, typically name, logo, tagline/slogan, font/typeface, and tone/sound. (Also see Differentiation and Positioning)

Brand equity  |  Value of brand's overall strength in the market as measured in loyalty (those who will not switch). Similar to brand loyalty which is a positive attitude and consistent purchasing of the product or service. (Also see negative brand equity)

Branding  |  Use of the names, logos, symbols, trademarks, or product design to identify a product

Brand identity  |  Mix of verbal and visual elements that pertain to a product or service, including the name (trademark), logos, slogans (tag lines), and other messages (Steve says: "Marketers don't create brands; it's only when customers ask for the product by name that it becomes a brand.")

Brand Islam  |  Marketing strategies aimed at helping those of Muslim faith discover which products and services are permitted under Sharia Law. Sharia principles such as honesty, respect, accountability, and understanding are key to marketing to the Muslim customer

Brand licensing  |  Process of creating and managing contracts between brand owners and individuals (often middlemen such as wholesalers and retailers) who wish to use the brand in connection with their product or service for a fixed period of time, or within a defined marketing territory

Brand personification  | Strategy of giving life to a brand through the characterization of individuals or mascots. Makes it easier for customers to remember the brand. For example: Disney characters (Mickey Mouse), team names (Broncos), and advertising spokespersons (Geico gecko)

Brand positioning  |  A distinctive position of careful manipulation of the marketing mix so that a brand adopts to ensure that its target market can set the brand apart from competitors. Ex: Loreal's original USP: "Costs more, but you're worth it," using a higher price point to connote quality

Branded entertainment  |  Blending or exposure of products into various TV, movie, or web entertainment programs/sites. Ex: TV show 30 Rock poked fun at product placement, such as Outback Steakhouse

Bundling  |  Combining products as a package, often to introduce other products or services to the customer. Ex: AT&T offers discounts for customers by combining 2 or more of the following services; cable television, home phone service, wireless phone service, and internet service

Buyer's remorse  |  Set of emotional responses by buyers after making a sales transaction, ranging from regret, fear, depression, or anxiety. Often associated with post-purchase cognitive dissonance

Buzz marketing  |  Low-cost word-of-mouth viral marketing technique that captivates an audience. Relies on key opinion leaders and trendsetters to disseminate information to a select group of consumers, often through rumor or innuendo in an informal or social group setting.. Effective with Generation X and Y consumers who do not trust advertising messages. (Also see viral marketing)

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Call to action  |  Motivation/requirement to get website visitors to participate, whether filling out a form or signing up for a newsletter

Calm technology  |  Making things easier/simpler for website visitors to avoid information overload, instead funneling them to content of interest through filters. Ex: Creating music or video playlists to stream at a later date

Cannibalization  |  Occasions when a new product will take market share away from an older brand, as in the addition of a diet soda product to a previously existing brand line of sodas. The new diet soda will compete with and perhaps eat away at the profits of the previously existing products
Cannibalization may also be said to occur when product sales fall at a particular sales outlet or set of retail outlets as the result of the opening of a new store, because sales at the new outlet are eating away at sales at the older ones

Caption  |  Usually appears in the form of text added to help explain the features or benefits that accompany an illustration or photograph in an advertisement. (STeve adds: By adding captions to Illustrations, photos, and charts, readers won't misinterpret or assign a different meaning than that intended by the writer—or advertiser)

Cause-related marketing  |  Joint funding and promotional strategy in which a percentage of a firm's sales are linked to a charity or other public cause. Unlike philanthropy, money spent in cause-related marketing is considered an expense and is often expected to show a return

Characteristic  |  Distinguishing feature or attribute of an item, person, or phenomenon that usually falls into either a physical, functional, or operational category

Channels  |  Any series of firms or individuals that participate in the movement/flow of goods and services from producer to final user

Chief Customer Officer (CCO)  |  Executive that provides comprehensive and authoritative view of the organization's target market. Helps create customer strategies towards meeting the company's goals and objectives. Relatively new term

Churn rate  |  Rate of customers lost (stopped using the service) over a specific period of time, often over the course of a year. Used to compare against new customers gained

Clusters  |  Customer profiles based on lifestyle, demographic, shopping behavior, or appetite for fashion. Example: Ready-to-eat meals may be heavily influenced by the ethnic make-up of a store’s shoppers, while beer, wine, and spirits categories in the same store may be influenced predominantly by the shopper’s income level and education

CMSA  |  Consolidated Metropolitan Statistical Area - (adjacent to MSA/PMSA with 1 million population)

Co-branding  |  An agreement between two brands to work together in marketing a new product, such as Dreyer's Ice Cream flavored with Baby Ruth candy pieces (promoting both brands on the label)

Commercialization  |  Stage in product development process where the decision to order full-scale production and launch is made. The act of exchange, buying, selling of a commodity on a large scale for profit. This also describes the flow of goods and services from producer to consumer

Commoditization  | When mature industries, slowing innovation, excessive supply, or fickle price-conscious consumers push margins to the floor. Often occurring when products lack differentiation or strong brand identities

Comparative advertising  |  Promotional messaging in which there is specific mention or presentation of competing brands, and a comparison is made or implied. Cellular companies often compare their features or advantages, as in this example of Verizon Wireless using a U.S. map to show 5 times more coverage than AT&T for its 3G network

Competitive advantage  |  Whatever one marketer does/has/offers better than the competition -- something that gives it an edge or advantage. (Also see competitive cost advantage)

Competitive cost advantage  |  An advantage that a firm has over competitors, allowing it to generate greater sales margins and/or retain more customers.  It supports the firm's cost structure, product offerings, distribution network and customer support

Competitive intelligence  |  Process of gathering actionable information on your business' competitive environment. Ex: In 2006, after extensive research to diversify and move into the organic fish market (available at Whole Foods), Walmart bought all the organic fisheries so it would have no competition, and could keep prices low in sync with its USP

Complementary products  |  Offerings (or other products) viewed by customers as "add-ons" to enhance the features of the main product. These items essentially have no value apart from the primary product. (Also see Feature/Accessory)

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Concentrated marketing  |  A growth strategy in which a firm's resources are focused on a well-defined market niche or population segment. (Also see differentiated marketing)

Consumer  |  A purchaser of a good or service at retail, or an end user not necessarily a purchaser, in the distribution chain of a good or service (gift recipient)

Contextual advertising  |  Method of deciding and posting specific advertising offers on websites. A contextual ad system scans the text of a website for keywords and returns ads to that webpage based on what the user is viewing (as in sports-related products on a physical fitness site)

Continuous strategic improvement (CSI)  |  Change, often improvements, designed to add product or service value to the customer and build loyalty. Ex: Kellogg's added Omega-3 to its Raisin Bran, thus allowing it to add the word "NEW." (Also see  new Product, brand equity, and product differentiation)

Conversational marketing  |  Use of social media to promote products and services by creating an ongoing public dialog on forums and blogs. For example, live chats with cast members of TV show, designed to promote their next episode

Conversion rate  |  Percentage of customers to purchase a product or service. Also includes percentage of website visitors to sign up for a newsletter, register for membership, or apply for a credit card

Customer advocate  |  Individual entrusted by management to study the needs of an organization's customers and help it better satisfy them. A role often cited as problem-solver: addressing customer complaints to protect and enhance the organization's image

Consumer-to-business (C2B)  |  A system in which consumers use online agents (middlemen) to look for a product or service that suits their needs. Examples include Priceline.com and shopbot.com. (Also see middleman) 

Contingency planning  |  Proactive management approach to having alternative actions in place should unlikely events affect stated goals and objectives

Corporate image  | The mental image held by others. It's composite psychological impression based on circumstances, media coverage, performance, etc. Similar to reputation and goodwill. It's the individual perception of a vested public. Large organizations use corporate advertising to enhance their image. (Example: Budweiser's Clydesdale horse ads during the Superbowl)

Coupon  |  Incentive designed to encourage sales, often in the form of dollars- or cents-off offers found in print media and on the Internet

CPM | Cost Per Thousand – Used by marketers and advertisers to measure the effectiveness of their media expenditures. Derived by dividing the cost of media purchase divided by the number of consumers reached (in thousands)

CPM  | Critical Path Method – Method to break down complex projects into simpler tasks, thus identifying more efficient, easiest, and fastest path to completion

Cross-channel marketing  |  Use of a single marketing channel (such as direct mail or internet) to support or promote another channel (such as retailing)

CRM  |  Customer Relationship Management – Broad term that covers concepts used by companies to manage their relationships with customers, including the capture, storage, and analysis of customer, vendor, partner, and internal process information

Cross-training  |  When employees are trained to perform various jobs by other groups or individuals to improve job performance. Often aimed at creating a diverse working group to combat an "narrow-minded" work force.  Also known as conditioning

Crowdsourcing  |  Practice of funding services, ideas, or content by soliciting contributions from large groups, especially the online community. It's also a marketing activity useful in promoting products and services > crowdfunding

Customer-centric  |  An approach to doing business in which a company focuses on creating a positive consumer experiences at the point of sale and post-sale. A customer-centric approach helps organizations to differentiate and position themselves apart from competitors who don't offer the same experiences

Customer-centric organizations are operated from a customers' point of view rather than developing new products and attempting to convince consumers to purchase them. (Also see marketing concept, positioning, and differentiation)

Customer profile  |  Description of a customer group or type of customer based on various geographic, demographic, and psychographic characteristics; also called shopper profile (may include income, occupation, level of education, age, gender, hobbies, or area of residence, etc.). Profiles provide knowledge needed to select the best prospect lists and to enable advertisers to select the best media

Customer retention  |  a goal of organizations to keep customers buying their products and services, an essential component to sustaining growth and profitability as it costs more to acquire a new customer than to retain existing customers. Ex: Best Buy has a team that surfs the Internet in search of special offers by competitors on products it offers and make adjustments, as needed

 Customer satisfaction  |   customers' state of mind about a company when their expectations have been met or exceeded, most often leading to brand loyalty and product repurchase. Ex: Nordstrom's Department Store emphasizes a 100-year-old customer service philosophy to generate customer satisfaction (best possible service, selection, quality and value). (Also see Utility)

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Data  |  Facts/figures pertinent to a marketing problem.

Data mining (knowledge discovery)  |  process of analyzing data from different perspectives or angles for use in such marketing activities as increasing revenue, cutting costs, etc.

Day-after recall test  |  Research method testing consumers' memories a day after hopefully seeing an advertisement. Designed to assess the ad's effectiveness

Deceptive advertising (False advertising)  |  Misleading customers by making claims or promises that are untrue, unproven, or distortions of the truth to promote the sale of goods or services. Often an illegal practice regulated or prosecuted by the secretaries of state

Demographics  |  Consumer statistics regarding socioeconomic factors, including gender, age, race, religion, nationality, education, income, occupation and family size. Each demographic category is broken down according to its characteristics by the various research companies

Derived demand  |  Desire for something produced as a by-product for another product or service, as in the demand for specialty skilled labor for the auto industry, or inherent value in a sports star's endorsement. Ultimate result is customer fulfillment

Differentiated marketing  |  Sales growth strategy in which several market niches or population segments are targeted with different products for each niche or segment. (Also see concentrated marketing)

Differentiation/Product  |  Differentiation seeks to make a product more attractive by contrasting its unique qualities with competing products. This creates a competitive advantage for the seller when customers view these products as unique or superior

Digital immigrant  |  Those NOT raised in a technology-savvy world, but are forced to comply. Ex: Jitterbug is a cellphone targeted to senior citizens

Digital marketing  |  Use of Internet-connected devices to engage customers with online product and service marketing/promotional programs. Includes mobile phones, iPads, and other Wi-Fi devices. (Also see Social marketing)

Digital native  |  Individuals that grew up with social technology, thus making the online world an integral part of their daily lives. They are the principle reason why savvy businesses now focus on social media marketing

Direct Marketing  |  Selling via direct contact with the prospective customer. Direct marketing differs from general marketing in that the result of a promotion is measurable in terms of response. Primary direct marketers include magazine publishers, catalog houses, political campaign organizations, and financial institutions

Discontinuous innovation  |  Description of how products and services are displaced by other products and services, reducing their intended utility or in some cases rendering them obsolete. Ex: Computers have virtually replaced typewriters. Will cell phones eliminate the need for a land line? Will iPads/Kindle readers replace college bookstores?

Discount  |  Reduction off the list price offered by a producer to a buyer; five types of discounts are common: trade, quantity, cash, seasonal and allowances.  Marketers issue discounts to increase sales, to move out-of-date items, to reward valuable customers, or use it as a sales promotion

Discretionary income  |   Amount of income after fixed regular expenses (mortgage/rent, car payment, insurance, taxes) have been paid—monies not yet committed and therefore subject to persuasion techniques on the part of marketers.  Ex: Take someone living in a $300/month trailer, who eats Ramen noodles as a staple, and often has his electricity or phone shut off for non-payment. But he drives a brand new Chrysler 300 with $3400 21” custom rims. His esteem need is in direct competition with safety/security and physiological needs for his discretionary income

Disintermediation |  Elimination of an intermediary (middleman such as wholesaler or retailer) in a transaction between the two channels. Often used to lower costs associated with the services provided that that channel member. Ex: Delta Airlines cut out its fuel suppliers by dealing direct with the refinery

Distribution  |   Movement of goods and services  through the distribution channel, to the final customer, consumer, or end user, with the movement of payment (transactions)  in the opposite direction back to the original producer or supplier

Distribution channel  |   Path through which goods and services flow from producer to consumer. This can be direct from the vendor to the consumer or may include several intermediaries such as wholesalers, distributors, agents, and retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer

Diversification  |  modification of a current product or introduction of a completely new product that expands the organization's current market. Usually involves creating a new customer base and often acquiring specialized expertise

Doorway page  |  Internet homepage created to rank well among search engines, usually containing limited information. Visitors will often only see a call to action, such as "Click here to Enter." (Also see Landing page)

Duopoly  |  A market that is dominated by two suppliers to the extent that jointly control pricing of goods or services in a defined market. This way, either seller can exert some control over the output and prices, but must consider the reaction of its sole competitor (unless both have formed an illegal collusive duo  Ex: If AT&T merges with T-Mobil for this would this give AT&T and T-Mobil an advantage to reduce risk

Double-loop marketing  |  (as applies to the Internet) Need for marketers to build offer/share useful information to help consumers make decisions. This is the first loop (and often an enticing free offer), after which a second loop offers other for-profit options. Ex: Annualcreditreport.com offers one free credit report with no strings attached; then offers continuing/value-added options such as credit alerts or credit scores for an additional cost. (Not to be confused with Bait-and-switch)

DVRicide |  phenomena of fast-forwarding through TV commercials that consumers see as an inconvenience (as opposed to the Superbowl, in which ads are sometimes watched more than the football game). According to BBC America, commercials have been skipped by 50- 70 percent of viewers. It will be interesting to see how advertisers begin positioning their products into the content of products (ex: Kia car features in episodes of The Glades)

Dynamic pricing  |  Sudden or frequent pricing fluctuations based on changes in customer demand. Product bidding is often the result, as witnessed on eBay and other "how much would you offer" websites offering coupons, premiums, or contests. Thanks to the Internet, many businesses are finding it essential to remain competitive. (Also see Price mix)

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E-marketing  |  Activity of promoting a product in electronic media format, such as internet ads, pop up links, e-commerce cell text, or email messages

Economies of scale  |  Reduction in cost per unit resulting from increased production, realized through operational efficiencies of production or reducing the cost of resources

Electronic media  |  Includes television, radio, internet, DVD (anything not film- or paper-based)

Emoticons  |  Combination of text characters designed to reflect facial expressions and convey simple meanings. Examples:  :-)  = smile;  :-(  = sad;  ;-)  = wink  Or, emoticons are found in special downloadable fonts on the Internet (google "emoticon fonts"). They can be used as promotional tools to convey opinions about products and services -- especially in social media

Exclusive distribution  |  Contracting with single channel members to move the product through the commercialization schedule. (Not to be confused with Exclusive exposure: Selling a product only through a single outlet in a particular region or market. Exclusive retail outlets are expected to perform many, if not most of the marketing functions to promote and support sales.)

Exposure  |  Presentation of a sales promotion piece or advertisement to an individual, such as a person viewing a television commercial or a reader opening a magazine to an advertisement page. The number of exposures achieved is an important measure of the effectiveness of an advertisement as measured in conjunction with the quality of the exposures achieved. (Also see Frequency). For example, if a golf club advertisement is exposed to 1000 golfers; it has greater value than if it is exposed to 1 million non-golfers.

Eye tracking  |  Research method used in advertising to determine which parts of an advertisement tend to get consumer attention. Accomplished by tracking eye movements.


Facings  |  Generally a retail term used to describe the number of products displayed vertically on the same shelf. Marketers often provide incentive or pay to gain this exposure.

Facilitating agent  |  Firms or individuals that performs any number of distribution or commercialization tasks other than buying, selling, or transferring title of products or services. They perform these services more effectively and/or efficiently than the producer. Ex: Transportation, warehousing, financing, sorting, etc.

Fad  |  an item or service that's popular for a short period of time; one that brings high demand and sales usually due to emotional or immediate popularity—but then fades quickly after initial demand is met. (Not to be confused with Fashion during which the item or services has a longer growth and maturity cycle before decline)

Feature/Accessory  |  Characteristics that are offered to the potential consumer that are sought out or desired as an attribute of form, time, place, and possession utility. An accessory is not essential in and of itself, but adds beauty, convenience, or effectiveness to what it is attached

Flagging  |  Promotional packaging label or display announcement on the store shelf to bring customers' attention to the product -- usually a specific offer or price reductio

Flighting  |  Media term explaining how advertisers select periods of time in which to run their ads, often several weeks to build reach and frequency. After a break (several weeks), they may run another series of ads for the same period. Thus a 12-week flight with 8 weeks of ads.

Fragmentation  |  Ability to break up or identify various media that target specific audiences, allowing marketers to more effectively target segments and niches. (Also see Segmentation and Niche)

Freemium  |  (Combination of free and premium) When a product or service, such as a digital application for a smart phone or tablet, is provided free of charge, but a premium is charged for advanced features or functionality.

Frequency  |  Number of times an advertising message is presented within a given time period. In general, number of times something occurs within a specified period of time. Frequency may refer to the issues of a periodical, the purchases made by a customer over time, or the number of times a commercial or an advertisement is aired or printed or reaches its audience. (Also see Exposure)

Frequency words  |  Terms use in marketing plans or proposals that contain bias—unless followed by data (numbers, percentages, indices, etc.). The following require data: usually, constantly, mostly, frequently, typically, generally, continually, sometimes, occasionally, sporadically, intermittently, rarely, seldom, hardly ever. The two exceptions: always (100%) and never (0%)

Frontstage technology  |  Innovative advances embraced by consumers that provide convenience and confidence relative to usage and purchasing decisions. Example: 24/7 banking/ATMs at your fingertips (Internet). It's technology that makes it easier for consumers to satisfy needs

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Gamification  |  Use of gaming concepts to motivate or drive certain behaviors from a target audience. Much like continuity programs, organizations offer awards, points, and other specific offers when customers check in on their websites. It's an incentive, or reward, for multiple visits

Generic brand  |  Products NOT associated with a private or national manufacturer/marketer. Most often offered at substantially-reduced prices

Geodemographics  |  Study of where potential customers live, their ages, income levels, education, and how it affects spending. Data are used to create clusters that help marketers identify and define potential target markets—those who might be intrigued to know more about their products

Geographic information system (GIS)  | demographic databases, digitized maps, and computer software designed to help marketers interpret data and define potential markets.. Ex: Metropolitan Life employs GIS to target customers and boost profits

Geographical segmentation  |  a defined market segment defined or divided according to geographic units, such as nations, states, regions, counties, cities, or neighborhoods. McDonalds' burgers in India are made from lamb, and in Mexico, chili sauce is added to the beef. (Also see Segmentation)

Geotargeting  |  Ability to target a marketing or advertising campaign based on defined set of target customers within a defined geographic territory

Global market  |  a universal market that can be viewed as a total global economy in which organizations target markets that extend beyond local borders; hence, globalization

Green Marketing Promotional activities aimed at reflecting the level of its concern for renewable/recycled resources and well-being of the community. For example, Nestle Waters is touting its Eco-Shape bottle as one of the lightest half-liter plastic bottles available

Greenwashing  |  Organizations that spend more time and money claiming to be "green" through promotional programs than actually implementing business practices that minimize environmental impact. Ex: Hotels that ask guests to reuse sheets or towels; this does little to reduce water and energy

Growth strategy  |  Strategy aimed at winning larger market share, even at the expense of short-term earnings, such as diversification, product development, market penetration, and market development (from the Marketing Opportunity Grid)

Guerrilla marketing  |  Unconventional methods of performing marketing activities (primarily promotion) on a low budget. It is up to the "guerrilla marketer" to be creative to generate product publicity. It can take many forms, such as social media (pop-up ads on Facebook and Twitter or  video clips on YouTube). These tactics are utilized by both small and large-scale companies. + see Buzz marketing and Viral marketing)

GWP (Gift with purchase)  |  Gifts offered to customers either free or at greatly-discounted prices when another advertised item is purchased, or the customers spends a certain amount of money

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Halo effect  |  Bias shown by customers towards specific products due to a favorable experience with other products made by the same marketers. Example: Purchasing a Sony Vaio computer based on favorable reactions to a Sony Bravia TV; same with Apple products (iPod to iPad to iPhone. (Also see Brand equity and Positioning

Hashtag  |  Key word or short phrase used primarily in social media platforms to create trending items. Displayed without spaces and with a number symbol (#) in front. Ex: #marketingrocks. Functions as a filter or hyperlink to other responses that include the same word or phrase

Heat map  |  Graphic representation of data where varying degrees of a single metric appear by color, such as tracking clicks on a marketer's website

Heavy-up  |  Short period of concentrated advertising in a media schedule. Advantageous when a product is more likely to be used at one specific time. Ex: With an approaching summer,  Water Babies Sun Screen will be touting its protection when families will soon be lounging at the beach

HENRY's  |  Acronym for High-Earners-Not-Rich-Yet. Represents a demographic of wage earners between $100-250,000

Heterogeneous markets or products  |  Geographic markets or products the marketer or customer sees as different. This term also applies to markets, in that a heterogeneous market is unique or different from others. As regards the need for winter snow blower equipment, Minneapolis and Houston would be heterogeneous (dissimilar winter weather)

Hierarchy of effects  |  Series of 7 steps that prospective customers move through, from initial product awareness to trial. These steps are divided into cognitive (knowledge about), affective (feelings about), and conative (action tendencies towards purchase) dimensions

Homogeneous markets or products  |  Geographic markets or products the customer sees is basically the same (sharing similar attributes, or easily substitutable products). Homogeneous markets share similar traits or conditions. As regards the need for winter snow blower equipment, Minneapolis and Cleveland would be homogeneous (same winter weather conditions)

Horizontal integration  | Distribution strategy in which one company establishes ownership or control of another company’s production, transportation, manufacturing, distribution, or retail outlet. Ex: .Most guitar companies do not manufacture their own low-end guitars. They contract Samick Guitars, the largest guitar manufacturer in the world (Indonesia). Samick can produce them much cheaper than these companies can produce themselves. Samick controls the low-end production channel for these products

Hospital value-based purchasing (VBP)  |  Federal government-based program that rewards hospitals that provide high quality patient care. The program is designed to bring sound business practices to the healthcare industry

HTML banner ad  |  Form of Internet promotion featuring information or special offers for products and services. These small space "banners" are interactive: when clicked, they open another website where a sales can be finalized. The hosting website of the banner ad often earns money each time someone clicks on the banner ad

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Image advertising  |  Attempt to create a favorable mental picture of a product or firm in mind of consumers to associate the advertised product or firm with certain lifestyles or values. Ex: In some markets, McDonalds' golden arches image is being changed to appear more upscale. (Also see Positioning)

Impression  |  Singlular display or viewing of a particular ad or web page. Some search engine ad fees are based on the number of impressions; others are PPC (number of clicks)

Inbound marketing  |  (where the customer comes to you) Passive sales technique the relies on the customer to find a product (as opposed to marketer-directed promotional efforts to communicate with potential customers). Achieved through website content personalization, media monitoring, and lead nurturing

Instagram marketing  |  Social media platform for sharing and editing photos and video: a process used by a variety of businesses to provide interactive hash-tagging to increase brand recognition

Institutional advertising  |  Promotional messages aimed at creating, improving, or reinforcing an organization's image: reputation enhancement, goodwill, advocating ideas. Such efforts are not intended to promote sales; rather, it's a form a corporate advertising, often aimed at vested publics with an interest in how the organization conducts business (stockholders, elected officials)

Integrated marketing  Strategy aimed at unifying different marketing mix elements/tactics, such as mass marketing, one-to-one marketing, and direct marketing. It complements and reinforces the market impact of each method in product development, pricing, distribution, promotional programs, and customer service

Intensive distribution  |  Selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product

Intentional destruction  |  Situation or circumstances requiring organizations to break down the existing structure of its operations to properly research future potential and restructure itself to face the realities of a dynamic marketplace. Generally brought on by advancements in technology and innovation

Intermediate good  |  Physical resources applied to or used in the creation of a final product. For example, sugar may be consumed directly or used in the manufacturing of ice cream. (Changing the shape or form of a resource in the creation of another product is call a transformation. (Also see transformation and transvection)

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Jingle  |  A short song used in a promotional announcement, usually mentioning a brand name
or product benefit

Joint venture  |  Often a global entry strategy to gain a foothold in new (foreign) markets by investing with a local business on a shared ownership, control, and profit basis. Sony-Ericsson is a joint venture between Sony and Swedish telecommunications company Ericsson  to manufacture mobile phones.

Jumble display  |  Mixture of often dissimilar products on a single display--usually promoted as clearance items

Just noticeable difference (JND)  |  Minimal change in how a product or its packaging are perceived by consumers, such that they do not detect the difference (Weber's Law). Often accomplished through a series of small changes to the package or contents


Keyword effectiveness index  |  Compares the number of searches for a key word, providing Internet marketers the ability to include these terms/words on their websites

Kid creative  | Used by advertisers that cast children in print and television advertisements to promote products generally geared to adults. AT&T used this concept to educate adults that wireless was not complicated (showing children effortlessly using the technology)

KISS method (Keep it simple stupid)  |  Process by which marketers fine-tune their advertising messages (copy thrust) to ensure relevancy, truth, and simplicity

Knowledge  |  A customer's understanding or relationship with an notion or idea. This applies to facts or ideas acquired by study, investigation, observation, or experience, not assumptions or opinions. (Also see Attitude)


Labeling  |  (Also see Positioning) – Description, instructions, and warnings printed on products and packaging as required by law or as an aide to the consumer

Lagniappe (native to Southern Louisiana and Southeast Texas: pronounced "lan-yap")  |  A little something extra; an unexpected surprise; gifts given to customers at the time of purchase. Ex: It's getting your car washed and vacuumed at no charge when taking it for service at the dealership. Or the chocolate chip cookie at check-in at Doubletree hotels

Landfill marketing  |  Large volumes of unsolicited or poorly-targeted marketing messages (SPAM), created with little strategic thought or purpose

Landing page  |  A website page used to collect relevant data from those interested in the content featured on that page. Also known as Lead-capture page. Often used for invitation-only and special offer promotional programs that feature exclusive offers or discounts. A unique method to evaluate effectiveness of Internet marketing programs

Leave-behind  |  A premium left with prospective customers by a sales person to remind them of the product or service being sold

Lead scoring  |  Tracking system designed to rate potential target customers based on lead criteria involving demographic characteristics. This helps target limited promotional budgets to those with a high score, thus reducing risk.

Like-gate  |   Online barrier that requires a user to first "Like" a brand's page before being able to access specific content that could include special limited time offerings, special sales, and other promotions, thus allowing the brand marketer to stay in touch with target customers

Likeonomics  |  Phenomena that consumers buy products from companies they like. Underlying principle: The more people like you, the more they will buy from you, and thus the more profit the company makes (attributed to Advertising Guru David Ogilvy). (Also see brand equity)

Linkbait  |  Content such as articles, videos, or podcasts to which other website wish to establish a link. Often noteworthy  items of interest that provide valuable information or unique points of view

Logistics  |  Process of planning, implementing, and controlling the efficient and effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements, internal, and external movements, and return of materials for environmental purposes

Logotype (logo)  |  Graphic element used to identify a company, or its products and services. Typically trademarked to legally protect ownership and usage rights so others cannot use it

Loss leader  |  Products sold at or below cost to stimulate other profitable sales. Often, popular items are priced below cost to entice customer visits to a retailer's store of website. Can be highly profitable, should customers purchase several other items at the same time

Loyalty programs  |  Rewards offered by a company to customers who frequently make purchases. Some programs provide access to new products, special sales coupons, and free merchandise

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Macromarketing  |  Study of marketing processes, activities, institutions, and results from a broad perspective such as a nation, in which cultural, political, and social interaction are investigated. It is marketing in a larger context than any one firm: the delivery of a standard of living

Markatainment (marketing + entertainment)  |  Using other goods and services to entertain customers at the point of purchase. Ex: Best Buy stores a free outdoor screening of the as-yet-unreleased Harry Potter movie for those waiting in line for doors to open for Black Friday sales. This is a form of publicity and sales promotion

Market | Economic system bringing together the forces of supply and demand for a particular good or service. A market consists of customers, suppliers, and channels of distribution, and mechanisms for establishing prices and effecting transactions where exchanges take place

Often, marketers will define primary, secondary, and even tertiary markets to help it allocate its limited resources in the most effective and efficient manner

Marketing analytics  |  scientific process for identifying patterns and relationships in survey data that will increase effectiveness of marketing activities. For example, after more than 40 years the GAP changed its logo, which set off negative postings on various blogs. So much so that the company went back to its original logo. When companies change parts of their strategy without consulting long-time faithful fans, it can cause an uproar and loss of loyalty by loyal customers. (Of course, the other side of this action is that the GAP received lots of free publicity)

Marketing blitz  |  Intensive fast-paced campaign (attack), designed to build up business clients. Examples include face-to-face campaigning and intensive media ad spending. Several books on the topic: check out Guerilla Marketing by Jay Levinson

Marketing Channels  |  Connected system of exchange relationships of wholesalers and retailers, developed to build lasting bridges between buyers and sellers. (Also see Commercialization) based on their ability to perform marketing activities more effectively and efficiently than the producer

Marketing Concept  |  Goal-oriented risk-reducing integrated philosophy practiced by producers of goods and services that focuses efforts on satisfying the needs of consumers by allocating resources to satisfy that need, and making a profit by doing so

For example, a successful marketing concept in the perfume industry is about selling dreams, sex, and romance -- the benefits derived from perfume, not the perfume itself (its ingredients and packaging). (Also see Marketing-oriented company)

Market development  |   Addition of new geographic markets in which to offer the existing mix of products and services—those NOT currently served by a firm

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Marketing environment  |  Range of uncontrollable variables related to competitive, economic, political/legal, technological, and social/cultural variables that impact the target market and marketing mix. (Also see Marketing strategy)

Marketing hyperopia  |  Condition or situation when consumer willpower against acquiring a product or service is overshadowed or exaggerated by desire, pleasure, or indulgence to have it—often apart from the expense or actual need fulfillment. Often occurring in Maslow's Belonging and Esteem need levels. (Also see Needs)

Marketing Intelligence  |  (See Marketing Research)

Marketing Mix  |  Combination of marketing elements used in the sale of a particular product, sometimes called the 4 Ps: product, price, place, and promotion

Marketing objectives  |  What an organization wishes to achieve (the end result). They focus on existing products in existing markets, new products for existing markets, existing products for new markets and new products for new markets (Marketing Opportunity Grid).  Most importantly, they can be measured in terms of sales volume, sales value, market share, profit, percentage of penetration outlets, awareness and esteem. Savvy marketers also add timelines and assign responsibilities to individuals to assure accountability

Marketing Plan  |  Set of specific goals (measurable), timelines (when goals are to achieved), and actions required (assignment of responsibility) to successfully implement a marketing strategy

Marketing Research | Process of gathering, analyzing, and interpreting information (data) about a market, product, or service; or about past, present and potential customers' characteristics, such as pricing, spending habits, location, and needs; or about the industry as a whole and its competitors. Ofetn referred to as marketing intelligence.  (Also see related research terms Reliability, Validity, and Bias)

Market Saturation  |  The point at which a market is no longer generating new demand for a firm's products, due to competition, decreased need,  obsolescence, or other uncontrollable variables

Market Segmentation  |  Targeted market or audience for a given product is divided into categories (segments) based on geographic, demographic, or psychographic variables, such as demographic segmentation, geographic segmentation, and psychographic (behavioral) segmentation

Market share  |  Percentage of sales volume captured by a brand, product, or firm in a given market

Marketing-oriented company  |  An organization that aligns or adjusts the allocation of its resources to product development, distribution, pricing, and promotional message channeling as dictated by the demands, interests, and needs of its target market. This approach reduces risk and enhances sustainability of the organization. (Also see Marketing concept and Selling orientation)

Marketing scorecard  |  A reporting approach that aligns marketing outcomes with objectives. Allows organizations to set, monitor, and adjust results to reduce risk. EX: Some oil companies use a scorecard to evaluate effectives of their service suppliers. During the life of a project, the supplier is graded on any number of factors; an overall score at the end may well determine whether it will be asked to bid on a future project

Marketing Strategy  |  Plan allowing the organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. It is comprised of a target market and marketing mix

Market testing  |  Risk-reduction effort based on planning and executing a regional or local marketing strategy before rolling out nationally. Markets are selected based on demographics that mirror the total potential target market. Also used to test awareness and recall of advertising messages

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Mark-up  |  Dollar amount added to the cost of products to get the selling price (can include incentives such as discounts and allowances), expressed as a percentage of the new selling price. Applies to each channel member

Mark-up chain  |  Sequence of mark-ups used at different stages in a channel to help determine the price structure among all channel members. This is helpful to marketers when analyzing the profitability of a new product or service

Mass customization  |  Extension of one-to-one marketing exposure for customizing products and services on a mass scale via personalizing buying interactions for each customer

Mass marketing  |  Broad unfocussed attempts to appeal to an entire geographic market with one basic marketing strategy utilizing mass distribution and mass media. Also called undifferentiated marketing. (Also see Differentiated marketing)

Mergers  |  buying or combining companies financially using cash and/or stocks. Ex: Bank One and JPMorgan Chase bank form one strategic brand that builds on brand loyalty, and helps both lower risk and obtain more control over financial markets. (Also see Horizontal and Vertical integration)

Metamarkets  |  2+ markets that are similarly associated with a product or service. They can also be different products spread across different industries, but are closely related in the minds of consumers. (Also see Positioning)

Micromarketing  |  Practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups

Middleman  |  Any person or business entity that plays a marketing role between producer and consumer in a distribution system (buying, selling, transportation, storing, sorting/assorting, grading, financing, research/data sharing). Examples include real estate brokers, banks, insurance companies, trucking/warehouse firms, and auto dealers. (Also see Wholesale and Retail)

Mobile marketing  |  Use of mobile technology (iPhone, iPads, netbooks/notebooks) for promotional purposes. A way for companies to connect with customers—anytime and anyplace. The concept is a fairly new form of permission marketing

Moppers  |  mobile shoppers who use cell phones and other devices such as iPads to browse on-line stores, comparison shop, and get recommendations from friends

Motivation  |  Implies an emotion or desire that causes the customer to think and act. It's a driving force arising from personal temperament or constitution that can be stimulated through incentives applied to an external influence (as an expected reward) inciting action. In marketing, it's the energy/fuel that drives the thought process, designed to result in a specific action by the consumer (purchase

Mousetrapping | Use of Internet browser tricks to keep a visitor captive at a site, often by disabling the "Back" button or generating pop-up windows (not too marketing-oriented, for sure)

MSA  |  Metropolitan Statistical Area – City > 50k population, or urban center with 100k population

Multichannel distribution  |  Occurs when a producer uses several competing channels to reach the same target market, perhaps using several middlemen to sell directly (sometimes called dual distribution)

Multivariate testing  |  research method of analyzing effect of multiple variables in a controlled situation/scenario. Example: Inputting relevant factors that a home buyer might debate when choosing a financial institution for his loan. This enables marketers to quickly identify an appropriate marketing strategy for the home buyer

Murketing  |  Blurring the lines between branding and everyday life. Ex: Axe body care products promote an "effect" (socialization) rather than a means of hygiene

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NAICS (North American Industrial Classification System)   |  Standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. A complete and valid NAICS code contains six digits and applies to businesses in the United States, Canada, and Mexico each to have country-specific detail.

The first two digits designate the economic sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industry, and the sixth digit designates the national industry

Narrow branding  |  Ways/methods by which brands present themselves differently to different customer segments (a more customer-centric approach to marketing). Ex: Food companies that address those who "live to cook" (affinity in the belonging and esteem needs), and those who "cook to live" (basic physiological or safety/security need set)

Needs  |  Basic forces that motivate a person to think about and do something/take action. In marketing, they help explain the benefit or satisfaction derived from a product or service, generally falling into the physical (air > water > food > sleep > sex > safety/security) or psychological (belonging > esteem > self-actualization > synergy) subsets of Maslow's Hierarchy of Needs

Negative brand equity  |  Situation arising when a company's brand has a deep negative impact, and the company might be better off without a name or brand. Ex: Suppliers once priding themselves on association with BP Petroleum may be facing reputational or financial risks due to BP's deep water fiasco in the Gulf of Mexico. (Also see brand equity)

A mouthwash or toothpaste might be used to rid the mouth of germs (safety/security), or combat bad breath and yellow teeth (esteem)

Netiquette  |  Proposed code of proper behavior when communicating via the Internet, not only with email, but for comments posted on social networking sites. Of concern to those whose postings might be judged by employers, customers, and suppliers (Some rules at Social Media and More and Albion's Core Rules of Netiquette)

Netnography  |  Adapting established anthropological research to the Internet. Campbell's' soup used it to study online customer behavior towards its product, resulting new recipes

Network Effect  |  Products or services that become more valuable as more customers begin using it; often accomplished through word-of-mouth by innovators and early adopters. (Also see viral marketing)

Neuromarketing  |  Research technique that  that studies consumers' sensorimotor (sensory and motor, or cognitive and affective) responses to marketing stimuli, often in focus groups

New product  |  "New" means substantially changed or altered in form. Technically, "new" has a shelf life of 6 months before it has to be removed (or the product altered again). Simply changing the packaging does not constitute the word "new" being placed on the product, other than to say "New Packaging"

Niche  |  Particular specialty in which a firm has garnered a large market share. Often, the market will be small enough so that the firm will not attract much competition. For example, a company that makes a line of specialty chemicals for exclusive use by the petroleum industry is said to have a niche in the chemical industry

Nonprofit Marketing  |  Marketing of a product or service in which the offer itself is not intended to make a monetary profit for the marketer

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Oligopoly  |  Condition/situation in which a market is controlled by a small group of firms (at least 2 different organizations, as opposed to monopoly in which there is only one firm).. Ex: In many cities, airlines or mass merchandisers compete against each other for sales. It's all about exerting control over a large part of a defined market

One-to-one marketing  | Personalized customer management approach employed by organizations desiring to tailor its offerings based on individual customer needs, often accomplished  through private/personalized counseling and customized on-line offerings

One segment approach  |  Singular company specializing (marketing) a certain or specialized product to meet a certain or specialized customer e.g. Rolex watches

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Packaging  |   Promoting the product on the shelf and protecting the product during shipment. Designing a package also includes consideration or size and weight to make transportation and storage more effective and efficient (as in sizing containers to fit neatly onto pallets)

Pay-per-click  |  Internet ad model used to direct traffic to websites. Advertisers pay the website owner when the ad is clicked. Search engines provide advertisers the opportunity to bid on keyword phrases relevant to their target market

Peer-to-peer marketing  |  Testing attributes of products and services to promote brands among younger (Generation Y) youth-oriented markets via social and mobile interactions, particularly on college campuses

Penetration  |  Process by which the marketers attempts to increase sales of an existing product in existing markets, thus minimizing risk. (Also termed Market penetration or product penetration)

It’s also a pricing strategy designed to price a product or service at the lowest potential price to break into a market. Often, it’s slightly below that of the lowest-price competitor’s product, or at a level that’s perceived as low

Perception (Perceptual Process) | A process by which consumers make sense of stimuli they get from not only marketer's promotional messages, but also unmet needs (such as a growling stomach to remind them to eat). There are 3 steps in the process: sensing (getting the attention of the customer), selecting (deciding to figure out what it means), and interpreting (assignment meaning and whether to take action)

Perishability  |  products and services that worsen in quality over time, thus reducing their value. In addition to fresh vegetables, fruits, bread, and milk, consider airline ticket fare promotions with an expiration/ending date

Permission marketing  |  Building an ongoing relationship of increasing depth with customers based on approval to send or receive email newsletters, catalogs, and other promotional incentives to gain brand recognition and status. Mostly used by on-line marketers to invite consumers to take part in defining the range of services to be offered

Personalization  | Means by which marketers configure product offerings to make it easier and faster for customers to satisfy their needs. The goal is to sustain and increase customer satisfaction and repeat purchases or visits. For example, Chili's restaurants installed tablets at every table, giving diners more choices, shorter wait times, ring for a wait staff member, and swipe their credit card to pay the bill

Physical Distribution (PD)  |  Transporting and storing of goods as a part of the commercialization schedule. This is not to be confused with Exposure, which is where the customer wants/expects the product to be available for possession utility

Pinning  |  Every time an individual pins an article or image, it gets shared with others that have chosen to follow that account. Followers can then "like" a pin and continue sharing

Place mix  |  Those activities involving distribution (moving the product from producer to consumer through channel members called wholesalers and retailers) and exposure (researching and delivering the product where the customers wants or expects it to be available). Marketers enroll channel members based on their ability to perform marketing activities more effectively and efficiently than they can

Pop-up shop  |  Recent retailing trend to provide expanded exposure for products and services in short-term/temporary stores -- often scheduled around holidays, event-specific promotions, or "by invitation only" to create excitement based on special pricing offers

POS  |  Point of Sale or POP (point of purchase) – Business or market where products and services are transacted. Also used to convey temporary displays used by marketers to showcase products. Soda companies use POP/POS in advance of sporting or holiday events to feature their products in other parts of the store or warehouse. Another example is gas station pump toppers that advertise daily food or drink specials inside the store

Positioning (or Framing)  |  How potential buyers see the product, relative to the position of competitors. It happens in the minds of the target market. It is the aggregate perception the market has of a particular company, product, or service in relation to their perceptions of the competitors. Repositioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market It's also physical product placement/location in stores. (Also see Facings, Slotting, Differentiation, Repositioning and Product placement)

Positive language  |  Art of using words or phrases to create a positive image about a product, service, or organization. It tells customers what you CAN do rather than can't do

Post virality  |  Number of posts/stories/comments created from a posting divided by the number of unique people reached. Ex: A post reaches 1,000 people/hits: 10 "liked it," 15 posted comments, and 7 shared it with others. Post virality is 3.2% (32/1000 X 100). Used to compare and analyze factors that optimize performance

Predatory pricing  |   Occurs when a firm charges extremely low prices for a product with the intent of driving competition out of business or out of a specific market. Prices then tend to return to normal once the competitor has been eliminated. While illegal and unethical, it's difficult to prove in court

Preemptive marketing  |  Building relationships with consumers/clients BEFORE they need your services. This can include introducing an organization's products/services towards building preference, loyalty, even conviction of not having to search for alternatives—when the need arises

Premature rebranding  |  An organization's hasty decisions to change various promotional tactics, such as a new logo, slogan, etc. without regard to its customers' emotional and psychological attachment to established/current elements. "Under New Management" has its consequences: what's changed that may upset or confuse customers?

Prestige pricing  |  Setting a high price based on the quality and the demand for which consumers are willing to spend.  For example: Starbucks gives a feeling of a high end product by its packaging, delivery and product promise, based on years or consistent promotion in its iconic coffee houses as "creating a product of excellence." (Also see Skimming, used when there is no competition for the product and the price is used as a benchmark. Prestige or a high above pricing approach requires a specific subjective component)

Pre-vis (previsualization)  |  Projecting a vision of how the "new world" will appear as a result of dynamic transformation (change). Sometimes used by company's to design and test new products and services

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Price bundling  |  Selling 2 or more goods or services as a single package, as in Taco Bell offers 2 hard tacos, a burrito, and a drink in a package for 1 price (usually a saving if you add up the prices of each individual item)

Price gouging  |  Controversial strategy that sellers sometimes use to charge higher than normal prices for products and services, especially when there is little or no competition

Price mix  |  Those objectives and strategies marketers apply to setting and managing profits for itself and each channel member. Pricing policies vary among organizations based on internal goals, ROI (return on investment), cost of goods, etc.

Price tactic  |  Justifying the use of low price as the principle reason why consumers will buy a product, as opposed to sustainable features or benefits. A short term remedy vs. strategy

Primary Data  |  Facts and figures newly-collected for a project or to solve the current problem

Primary Market | Group of consumers targeted to receive the major share of a marketer's attention, resources, and media expenditures

Procurement  |  Process (acquisition) of obtaining goods (materials) and services (expertise) from middlemen/suppliers. This is a major component of the Marketing Concept: define customers'' unmet needs; allocate resources; make a profit. (Also see Resources and Marketing Concept)

Product adoption curve |  Explains that product and services are first purchased and evaluated by innovators and early adopters, after which by early and late majority, and finally laggards

Product development  |  Creation of products with new or different characteristics than those already offered. This may involve modification of an existing product or formulation of an entirely new product that satisfies a newly-defined set of customer wants or desires

Product life cycle | A concept that explains how products move through distinct stages, from introduction, growth, maturity, decline, and abandonment

Product  |  Whatever the customer thinks, feels, or expects from an item or idea. From a “marketing-oriented” perspective, products should be defined by what they satisfy, contribute, or deliver vs. what they do or the form utility involved in their development. Ex: A dishwasher cleans dishes but it’s what the consumer does with the time savings that matters most. And ultimately, a dishwasher is about “clean dishes,” not the acting of cleaning them

Product differentiation  |  Attributes/qualities that make one product stand apart from both competitors and easily-substitutable alternatives. These may not always be favorable, as in the choice of how to finance a purchase or select a course of treatment for a disease. A major component of a marketer's product mix, usually focusing on a product's unique feature. (Also see USP and SCA)

Product Mix  |  All of the products or product lines offered by a firm. Some companies have a wide product mix geared toward a diverse consumer group

For example, Procter & Gamble has a product mix that includes detergents, toothpaste, Procter bar soap, deodorants, disposable diapers, coffee, household paper goods, and food products. Some companies have a narrow product mix geared toward a particular market segment, such as the Williams Sonoma catalog that sells gourmet cooking accessories

A product mix is also one of the 4 Ps or the marketing strategy. It includes the product idea (features, accessories, installation, warranty, and product lines), packaging, and labeling

Product placement  |  act/art of gaining exposure of products and services in movies and television shows, most often by paying a negotiated amount (form of publicity)

Profit  |  What remains after all costs (direct & indirect) have been covered from the initial selling price

Promotional Mix  |  Combination of one or more promotional elements that a firm uses to communicate with customers: often a mix of personal selling, mass selling (advertising, public relations, and publicity), sales promotion, and direct marketing

Psychological pricing (price ending)  |  Practice based on a theory that the display of certain types of prices impact retail sales. Often expressed as "odd/even," prices ending in 99-cents drive greater demand to non-rational consumers

Psychographics  |  Criteria for segmenting consumers by lifestyle, attitudes, beliefs, values, personality, buying motives, and/or extent of product usage—in essence: activities, interests, and opinions

For example, the market for shampoo may consist of various psychographic segments described by their primary purchase motives (beauty, health, grooming), usage styles (daily, weekly, salon-only), or lifestyle (frequent travelers, parents with young children, empty-nesters). Research studies might focus on what magazines they read, which TV shows they view, and their opinions on the importance of "good grooming"

Psychological utility  |  Ability of a product or service to deliver a positive experiential or psychological attribute that customers find satisfying. Ex: Sports events sell atmosphere and energy; Mexican restaurants sell fajitas based on the sizzle (steam rising from the platters as they exit the kitchen)

Public Relations (PR)  |  Form of communication that is primarily directed toward gaining understanding and acceptance by vested groups of what the marketer is doing. It often tends to deal with issues rather than specifically with products or services.  PR also cannot be controlled by the organization because it is not purchasing the time or space in the media, but it offers legitimacy that advertising cannot claim

The practice of PR is used to build rapport with the various (vested) publics a company, individual, or organization may have (employees, customers, stockholders, voters, competitors, or the general population). Publicity releases, employee-training seminars, and company-produced newsletters, (house organs) are examples of instruments used in public relations

Publicity  |  Involves supplying information that is factual, interesting, and newsworthy to media not controlled by the organization (radio, television, magazines, newspapers, and trade journals). It is an uncontrolled method of placing messages in the media because the source does not pay the media for placement

Publicity typically generated from an organization's public relations department and its goal is to gain media coverage. Examples of news-worthy events that may receive media coverage, or publicity, include ground-breaking ceremonies, press conferences, organized protests, or ceremonial appointments or awards

PR/publicity is "doing good -- and getting caught"

Purpose-based marketing (pro-social movement)  |  Marketing efforts designed to communicate social responsibility ideas that are shared between an organization and its customers. Ex: Panera Bread's "Bakes before sunrise; donated after sunset" campaign

Push/Pull strategies  |  Customers "pull" products towards themselves (creating channels that until now did not exist), while a producer "pushes" a product toward customers by promoting (advertising, sales promotion and discounts/allowances) through an existing channel, one channel member at a time

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QR codes (Quick Response)  |  Digital graphic links found in magazine ads, webpages, billboards, and practically anywhere a marketer wishes to advertise his business. Read by cell phones and other digital devices with cameras to display additional information or promotional offers to potential customers


Rating  |  Broadcast size of an actual listening or viewing audience for a particular program or commercial as compared to the size of the potential audience (all households in a geographic area that have broadcast receivers—whether or not these broadcast receivers are turned on). One rating point represents 1% of the households making up the potential audience. (Also see Share)

Outdoor advertising estimates the number of persons exposed to an outdoor sign. Each outdoor structure is rated in terms of the number of persons who pass by on a daily basis as compared to the entire population in the area where the structure is located

Reach  |  Size of the audience who listen to, read, view or otherwise are exposed to a particular ad message over a defined time period. Reach may be stated either as an absolute number, or as a fraction of a given population (for instance TV households, men, or those aged 25-34)

Real time marketing  |  Connecting with consumers the same way that consumers connect with each other -- with timely relevant content. Goal to increase engagement and humanize brands

Recall (Aided and Unaided)  |  Ascertaining whether potential customers saw/heard a specific product or service advertisement, often conducted via telephone after showing/playing the ad in test markets:
Unaided question: "What ads do you recall from your TV viewing last night?"
Aided question (often after negative unaided response): "Do you remember any ads for shampoos?"

Referral Premium  |   Reward offered to customers that introduce new customers, or to employees that bring in suitable recruits. For example, customers at a Miami car wash can earn $ 3.00 off their next wash for each new customer referred. At the end of the month, the customer with the most referrals gets a $50.00 gift card

Reshoring  |  Act of returning jobs to a host country, usually based on rising shipping and labor costs

Re-targeting  |  Tracking website visitors, often with small embedded coding on the visitor's computer called "cookies." Then displaying relevant banner ads relating to products and services on websites previously visiting as surfers visit other websites

Reticular Activating System (Reticular Advantage)  |  How consumers' brains connect what they sense and select in the real world with previous/past experiences. The RAS helps the brain create connections, and when this occurs as the result of a marketing tactic, it's referred to as a reticular advantage

Relationship Marketing  |  Emphasizing customer retention and satisfaction rather than a point-of-sale transactions by recognizing the long term value of keeping customers

Reliability  |  Research study can be replicated and get some basic results (free of errors)

Repositioning | Changing a brand's status in comparison to competing brands, usually through changing the marketing mix in response to changes in the marketplace, or due to a failure to reach the brand's marketing objectives. (Also see Positioning and Differentiation)

Resource  |  Economic or productive factors required to accomplish an activity, such as materials, components, land, and capital. Others include energy, entrepreneurship, information, human skills/management expertise

Retail  |  Channel members in a distribution network or commercialization schedule that sell directly to the end user. In the U.S., that’s where sales tax is collected. If a producer sells direct to consumers, it is a retailer (it charges and collects sales tax.) It's where possession utility takes place

Revenue  |  Amounts generated from sale of goods or services, or any other use of capital or assets before any costs or expenses are deducted. Also called sales

Risk  |  Uncertainty of falling short of goals in a marketing plan. It's also all the unknowns that are uncontrollable by the marketer. That's why researching the needs of the target market is imperative towards reducing risk

RFID (radio frequency identification)  |  System of radio waves that transmits the identity of an object (product) or person wirelessly, usually in the form of a unique serial number. Example: Used by Dole to track deliveries of its fruits from farm to market to ensure safety and freshness

ROI (return on investment)  |  Often used in portfolio management of various products, a firm will set a specific profit return based on funds allocated to produce and market a given product or product line, often expressed as a percentage

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Sadvertising  |  Efforts to offer more "meaningful" content to TV ads -- inspirational stories designed to either break your heart or take your breath away. For example, the "Puppy Love" Budweiser commercial that aired during the Super Bowl.

Sales funnel  |  Process/steps that customers go through from initial contact to final sale (using metaphor of a leaky funnel, from which potential customers may be lost/dropped due to missing or poorly executed selling opportunities or when customers become uninterested)

SCA  Sustainable Competitive Advantage – A position that a firm occupies in its competitive landscape. A firm possesses an SCA when it has value-creating processes and positions that cannot be duplicated or imitated by other firms over a long term. It takes time and sustained promotional expenditure to establish an SCA. Without both of these criteria, it's probably a USP (unique selling proposition)

Searchandising  |  A combination of search and merchandising used by websites to achieve presence on various search engines. Google Shopping provides photos and pricing for various product categories of its choosing

Secondary Data  |  Facts and figures already recorded prior to a project. There may be a higher degree of risk due to the length of time that has passed when the data were collected

Segmentation  |  Clusters of people with similar needs that share other geographic, demographic, and psychographic characteristics, such as veterans, senior citizens, or teens. (Also see Geographic Segmentation)

Selective distribution  |  Contracting with several, but not all available channel members to move the product through the commercialization schedule. Attention is given to those channel members willing to give special attention to the product or service, such as employing a sales force to help sell/move the product to the next channel. (Not to be confused with Selective exposure: Providing several different choices where the customer can obtain possession utility. Often marketers select selective channel members based on their ability to push the product to the next channel member through its own sales force)

Selling orientation  |  A company-centered approach designed to motivate potential customers to buy products and services through various promotional offers, such as quantity discounts, free trial, money-back guarantees, and rebates. This orientation tends to ignore what the customer really needs. (All those extra rolls of toilet paper in your bathroom linen closet probably got there through a selling-oriented coupon or quantity price discount)

Service  |  An intangible economic activity (buying and selling transaction) that is not stored, and does not result in ownership—such as a check-up at the doctor, or being privileged to attend an EMBA marketing class in Houston at Texas Woman's University

Share  |  Percentage of a media audience reached with an advertisement among those watching at the time. This is often a misleading term. For example, a 50 share (half of all viewers) means only that half of those watching at that time had the potential to see the ad. But if only half of 2 million TV households in a given market had their TV sets tuned to that program, that would equate to 500,000 households (only half of 1 million TV households)

Short message service marketing (SMS)  |  Use of text messaging on mobile devices to sell products and services

SIC  |  Standard Industrial Codes for the United States (up to four digits) used from 1930 to 1997. Replaced by the NAICS (National American Industrial Code) in 1997 for North America, 6-digit code

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Skeuomorphic  |  Design function in which virtual objects resemble physical ones. Ex: On Apple's iOS, a notepad app appears as a legal pad, and voice memos by an image of a 1940s microphone

Skimming  |  Pricing strategy often used in the introductory and growth stages of the product life cycle to target innovators and early adopters that are willing to pay a relatively high price for the product. Over time, the price may be reduced to take advantage of production economies of scale achieved by selling higher volumes

A skimming strategy can attract competitors to the market if the product or technology can be easily duplicated. Luxury perfumes use a skimming strategy that takes advantage of the high perceived value, enabling them to sell perfume at hundreds of dollars per ounce

The term is derived from the concept of "skimming the cream" off unprocessed milk. In this case, the marketer is skimming the cream, or those consumers willing to pay the most, off the market

Slotting fees  |  Fees charged by retailers to obtain exposure (shelf space) for a product. This may take the form of  promotional, advertising and stocking fees. Supermarkets often earn more profit from agreeing to carry a marketer’s  product than from actually selling the product to customers

Social media marketing  |  Various methods of obtaining online traffic and brand exposure through socially-based or driven websites. Blogs, videos, social book marketing sites and other social online communities often go viral (rapid attention and exposure). Those who work to effectively leverage these efforts are often referred to as social mediologists.

Social culturism  |  Uncontrollable variables that relate to values, religion, tradition, age, and ethnicity that impact the effectiveness of marketing strategies and tactics. Ex: Sales of matzah balls increase dramatically during annual Jewish Passover; then level off for the remainder of the year

Social marketing (social networking)  |  Seeking to increase the acceptability of a social idea, cause, or practice in a target group or vested public. Ex: Oklahoma State University used social marketing to broaden its image as a conscious global solutions-oriented university. Both enrollment and alumni donations increased. Beyond shortening the distance between friends, Facebook is also an advertising site: Click "like" and you advertise to everyone in your network

Societal marketing  |  Companies that make marketing decisions that include consumers' wants and society's long-term interests (social responsibility, such as wise use of limited or renewable resources, or not using animals for product testing)

Soft launch  |  Process to gradually introduce a new product or changes to a product, such as a simple upgrade to an existing software package, to ensure acceptance or uncover possible problems. In this case, introducing the software to a limited number of customers before a mass roll-out

SoLoMo  |  Blend of social, local, and mobile targeting trends to target customers with content designed to be shared via social networks, based on their location (via smartphones, tablets, or other mobile devices). (Also see Social marketing, just above)

Spheres of influence  |  Identifying and addressing factors (events, persons/groups, etc.) that can sway a customer's evaluation and purchase decision of a company's products. Examples include postings on Facebook, Twitter, Instagram, blogs, magazines, and recognized consumer advocate individuals and groups

Splash page  |  Branding/introductory page or screen before you enter the main homepage on a website. Usually designed to prompt attention and make the viewer feel that the website has what's needed. It sets the tone and mood of the browsing experience

Spiff  |  Money paid to sales people as an incentive to push/sell certain merchandise or services. It can include such items such as extended warranties, or in the case of auto salesmen, paint protection or window tinting for new car buyers

Spin  |  Often a heavily-biased portrayal of an event or situation. Often used in PR campaigns to create and support favorable impressions among vested groups, such as customers, investors, or a specific community. It can also imply disingenuous, deceptive and manipulative tactics

Superstitial  |  a web-based advertisement format that combines flash and other animation technology with Java Programming to deliver video-like commercials

Supply chain management  |  Management activities to maximize customer value by ensuring the most effective and efficient commercialization schedule. (Also see Commercialization)

Sustainable competitive advantage | See SCA above

SWAG ("Stuff We All Get")  |  Useful items given to specific groups of people that are designed to reinforce a brand, experience, or theme. Also know as branded logo merchandise, promotional ad specialties -- "freebies" used to stimulate thoughts about a product or service

SWOT analysis (strengths, weaknesses, opportunities, and threat)  |  Internal and external factors identified in a situation analysis that can be both advantageous and disadvantageous to the organization in its efforts to satisfy the needs of its target market. (Also see Marketing mix)

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Tag lineSlogan or phrase that conveys important attribute or benefits of the product or service. Often, a theme to a campaign that's defined by the product's unique selling proposition or sustainable competitive advantage. Ex: Nike | Just do it; Las Vegas | What happens here, stays here; M&M Candies | Melts in your mouth, not in your hands. (Also see USP and SCA)

Target market  |  Group of persons for which a firm creates and maintains a product mix that specifically fits the needs and preferences of that group. For example, the furniture market can be divided into segments described as Early American, contemporary, or traditional

Target Audience  |  TA – Group of persons to which the firm generates advertising or other e-marketing efforts towards gaining exposure of their product

Terminal Anchor  |  TA or (Primary Optical Area / POA) – We learn to read by first scanning the page top left to bottom right. Primary Optical (POA) point is the top left corner, with the Terminal Anchor Point being the last thing we scan at the bottom right (TA)

Test market  |  Research technique to test consumer behavior under actual buying conditions BEFORE executing distribution on a mass scale to the target market. Involves selecting a metropolitan area with demographic and psychographic characteristics that mirror the target market. Rochester, NY; Nashville, TN; and Columbus, OH seem to compare favorably to the U.S. population

Through-the-line  |  (first helps to understand above-the-line: media advertising; below-the-line: traditional mix of promotional events, discounts, coupons and catalogs)   Through-the-line is a combination of above- and below- activities for the purpose of building brand image and repeat sales among specific groups of customers

Tier pricing  |  a promotional price-setting tool that generally affords customers unit price savings for purchasing in higher quantities.  This is an effective way to move more merchandise. For example: customers that purchase 3 boxes of printer paper save money. The retailer sign might read:
-- Buy
2 and save 6%
-- Buy 3 and save 15%
-- Buy 5 and save 42%

Time to market  |  Range or amount of time that precedes the commercialization of an enterprise (time it takes to realize an idea and deliver a product to the marketplace). Often this period of time is used to research, refine, and adapt a product to meet customer needs; in addition, promotion can also be used to introduce and educate customers about what it to come

Tansactional marketing  |  Strategy that focuses on a single point of sale for making sales. Ex: Pearson VUE is the only organization that offers the Graduate Management Aptitude Text (GMAT). And the only point of sale is located on-line (where the candidate pays the fee)

Transactions  |  An exchange. What one gives up for something else without any change in form to the object, as in buying a pack of gum at the drugstore vs. having a roll of film developed. The latter involves both a transformation (developing the film and printing photo) and a transaction (paying for processing and printing)

Transformations  |  Change in form, function, condition or outward appearance of a good or service. For example, a plastics company buys polymer pellets (transaction) which are then melted and poured into molds to make a child's toy (transformation)

Transvection  |  Series of transformations and transactions that take place throughout the commercialization schedule (from producer to consumer). The transvection is a measure of efficiency in turning raw materials into finished goods. Used by marketers to evaluate and optimize efficiency of their channels

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Universal product code (UPC)  |  Assigned 12-digit number used to identify a product. Translated into barcodes consisting of a series of vertical parallel bars, it can be used for scan entry, by an electronic cash register, or information for product sales and inventory tracking. The first set of digits are the same for all of the manufacturer's products and represent the name of the manufacturer. The next set refers to the product itself and are assigned by the manufacturer to the product of his choice

URL (Uniform Resource Locator)  |  Internet service provider address of a document or website, usually a protocol consisting of a name(s). Also expressed as a series of numbers: Example: stevetoms.net is the base URL for this glossary, which references its IP (Internet Protocol) address of 75.53.135.140

USP  |  Unique Selling Proposition – Differentiates and positions it in the mind of the consumer. Unlike an SCA (sustainable competitive advantage), a USP can be adapted, modified, and even changed depending on fluctuations in the market

Utility  |  Ability of the product to satisfy customers needs and wants. The 4 major marketing utilities include form utility, time utility, place utility, and possession utility. More recent studies include psychological utility. (Also see Customer satisfaction)

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Validity  |  In research studies, it means the data collected reflects what it was designed to measure. Often, invalid data also contains bias

Value proposition  |  Giving customers what they pay for -- unique value that competitors don't offer or emphasize. In Houston, Rice Epicurean Supermarkets host gourmet cooking demonstrations, grocery delivery, unique gourmet products, and catering services. (Also see Differentiation)

Vampiring  |  Star-power overshadowing an advertiser's promotional message. When Chrysler contracted Celine Dion to appear in an ad for its Pacifica model, it generated more sales for her music than sales of the auto

Vendor  |  Manufacturer, producer, or seller (can also include wholesalers and retailers and their affiliated sales agents)

Vertical integration  |  strategy for growth in which a company adds new facilities to existing manufacturing or distribution facilities, reducing risk by extending control through its commercialization schedule (distribution channels). It primary purpose is to enable the firm to become more effective and efficient. Ex: By owning the mines, ships, and railroads tracks, Carnegie Steel became vertically integrated as a means to expand/grow

Video game marketing  |  activities that generate product sales via gaming consoles. This includes digital advertising while playing games, attending trade shows, watching movie trailers, TV commercials, and online or printed materials. Online gaming characters include Mario, Pac Man, and "Soap" MacTavish of Grand Theft Auto

Vine'ing  |  Short 6-second video loop that makes it easy to film, upload, and share videos on social media sites. The term itself describes the act of posting a vine clip, currently used by companies such as Dunkin Donuts, Samsung, and Target

Viral Marketing  |  Any on-line advertising that relies primarily on word of mouth to gain brand name recognition. Viral Marketing can create the kind of product or service explosion many companies need to grow. It's also highly unpredictable

Vision statement  |  Aspirational description of what an organization would like to achieve or accomplish in the mid- or long-term future. Serves as a guide to analyzing future courses of action

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Wants  |  To feel the need for, craving, desire, or wish to have or possess. It is often said that "wants are manifestations of unmet needs"

Webromming  |  Act of going to a physical location (store or shop) after browsing on-line

Web traffic  |  Number of hits or unique visitors that a website receives. This traffic results from marketers' efforts to drive more people (potential customers) to their sites

Wheel of retailing  |  Helps explain the how when and why new types of retailers enter a market by lowering prices and limiting services, using promoting established retailers to either do the same or reposition/differentiate themselves with new/more/other value-added services

Wholesale  |  Channel members in a distribution network (commercialization schedule) that sell to other wholesalers and retailers. Generally, it involves sales to other organizations that are not the intended end user (customer) for the product

Marketers enroll channel members to perform functions which they cannot perform as effectively or efficiently, such as transporting, grading, sorting, assorting, financing, or researching other channel members/customers

In the U.S., no sales taxes are collected at the wholesale level. Thus, a Sam’s Club or Costco can operate as both wholesaler and retailer. For example, a Little League organization may have a tax I.D. number (to avoid paying sales tax) when purchasing hot dogs, buns, mustard, and ketchup at Sam’s Club, because it will then transform these items into finished hot dogs for sale at the ballpark—where tax will be collected from the fan

Word-of-mouth (referral marketing)  |  WOM marketing is an alternative marketing strategy supported by research and technology that encourages consumers to dialogue about products and services through various online and offline tactics, often facilitated by brand ambassadors. (Click here for a Facebook example, posted on 6/17/10). (Also see Guerilla marketing, Buzz marketing and viral marketing)

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Zone pricing  |  a pricing strategy by which all customers within a specific geographic zone or region are charged the same price; those more distant pay more due to higher shipping costs. Price zones are set by marketers, not by law

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Reference sources:


12Manage - The Executive Fast Track
About.com: marketing terms and definitions
Accounting Essentials for Managers, Baker, 2nd edition
Accuracast - Digital Marketing Agency (Blog marketing)
AdRoll
All Business A Dun and Bradstreet Company
All Experts website (macromarketing)
answers.com
ars technical
articleworld.org/marketing
Basic Marketing, McCarthy, Perreault, 11th, 15th, and 16th editions
businessdictionary.com Bloomberg BusinessWeek Blitz Marketing
Blue Ocean Strategy (Kim and Mauborgne), Harvard Business School Press, 2005
brandchannel
Branding Strategy Insider (halo effect)
Bright Hub (global market) Business Insider
Buzzle.com
(geographic segmentation) Cleanfax Online (preemptive marketing) Council of Logistics Management Collective Brands Inc. 2009 Annual Report p.9 Creating Minds.org (absence thinking)
Customer-Centric Marketing
Delish iBusiness  (Loss leader)
Dictionary.com (input term)
Digett.com
Direct Hit Solutions
DP Directory (B-roll)
Economics Help
Elated.com
Ellett, J. (2010). Is comparative advertising a good strategy?
Encyclo  (online encyclopedia)
eHow money
Entrepreneur Encyclopedia (marketing terms)
Food and Agriculture Organization of the U.N. (marketing glossary
Financial Times Lexicon
Fuse
Fundamentals of Marketing (Purdue University marketing glossary: pdf file)
Greenwashing Index
Houston Institute for Culture (Americanization)
Information Management
ignitesocialmedia.com (Post virality)
International Federation of Library Associations
Internet Marketing Dictionary
INVESTOPEDIA (dictionary)
investorwords.com
Knowtebook (heat map)
Marketing terms and definitions
Learn Marketing Macmillan Dictionary
Magento - Knowledge Platform for Growth

Maine Marketing
MarcommWise
Marketing, Pride/Ferrell 12th edition
Marketing: The Core, Kerin, Hartley, and Rudelius, 1st edition
Marketing AllIncluksive.com
Marketing Association of Australia and New Zealand

Marketing: Real People, Real Choices, Solomon/Marshall/Stuart
Marketing Mojo for Small Business  (brand elements)
Marketing Plans That Work, Malcolm H.B. McDonald and Warren J. Keegan
Marketing Power Dictionary
MarketingProfs
Marketing Real People, Real Choices, Solomon, Marshall, Stuart, 4th edition
Marketing Strategy, Ferrell, Hartline 4th edition

Market Segmentation Study Guide
Marketing terms.com
MarketingWeek (UK) - Landfill marketing and Negative brand equity
Mashable.com (Freemium)
Merriam-Webster on-line encyclopedia (lagniappe)
Midsize Insider (top 10 terms for 2013
MindTools  (Sales funnel)
Mobilemarketing.net
MIT Review (netnography)
Modern Marketing Partners (free glossary download)
Monash University Marketing Directory
MSH Marketing Group (Glossary of Marketing Communications Terminology)
out-smarts for marketing (Vine'ing)
Quality Digest (customer satisfaction)
Payperclick.com
PC magazine encyclopedia (Avatar)
Plan online (social marketing)
PennState College of Business (Double Loop Marketing)
pureCommerce (dictionary)
Principles of Marketing, Kotler & Armstrong (chapter 7)
Quirk's Marketing Research Review
Reid Neubert+Friends
RFID Journal
RTBOT (brand licensing)
Salesopedia
Search Engine Land
SEMPO Institute Glossary
Slideshkare (Brand Islam)
Social Marketing Quarterly, July 1995 (social culturism)
smallbiztrends.com (pricing)
Spears, R.A. Ntc's Thematic Dictionary of American Slang, NTC Publishing (1998)
sticky-marketing.net
technopedia (Technology Dictionary)
TheProduct.com (diversification)
Text-board.com (SMS marketing)
Thoroughly Modern Marketing (excellent Internet terms)
Total Quality Management (benchmarking)
USLegal (buyer's remorse)
Visible Strategies Communications
web1marketing.com  (Internet marketing terms)
Web Persuasion (multivariate testing)
Webster’s New World College Dictionary, 3rd edition
Whatis.com
wiseGeek
Work at home woman (Digital native)
wordiQ
Wordnik (Moppers)
outhmarketing.com (peer-to-peer marketing)
Zideate (Marketing Dictionary)

Some of the 1500+ graduate students in Steve Toms' marketing class


Contributors:

Steve applauds the following 244 currentologists:

Steve Thomas, Timothy LeCuyer, Veronica Cowley-Keating, Anita Darjean, Huriya Suhir, Juanita Syon, Adriana Garcia,
Mark Ross, Lisa Moers, Nakietha Richard, Timmie Shingleton, Mark Ross, Faye Jones, Jamila Glover, Moniki Specks,
Tashika Charles, Bruce Litwin, DaNina Tate, Inez Sanderson, Belinda Kent, Gwen Henderson, Salwa Adam, Ashley Jones.
Suzanne Dorantes, Ida Dill, Sandra Kitmanyen, Rita Gibson, Felicia Simonton, Nicole Williams, Sanah Haque,
Lemitra Rhodes, Samara Williams, Anna Saenz, Chanel Kyles, Cora Day, Alex Gray, Claudia Ramirez, Victoria Ramirez,
Jayna Jefferson, Matt Cowan, Tyeshia.Miller-Williams, Leslie Turlington, LaToya Ingram, Raymond Decuir, Ty Tran,
Eileena Tran, Carmen Williams, Megan Lee, Susan Sifuentes, Shysha Lewis, Yardley Williams, Kathy Bell, Ebrandia Burton,
Celest Jones, Lisa Loney, Kindness Chukwukere, Felicia Sanders, Shiketa Loring, Markisha Vensant-Sampson, Terri Deloach,
John Minehart, Britney Hunter, Keisha Brooks, Sherry Wolf, Sabrenda Littles Betty Ung, Angela Lang, Timothy Brown,
Passion Lockett, Courtney Mixon, Tammy Hummel, Demetrica Allen, Carla Craddock, Eric Herrera, Shana Naylor, Troy Moran,
Stephanie Lege-Humbert, Debby Olatunbosun, Lizzy Oyeteju, Evelyn Olatunbosun, Carla Marshall, Veronica Elllis,
Murial Twenty Lomax, Maria Cristina Martinez, Debra Taylor, Qiana Lorings, Jarvis Lamb, Quendrida Whitmore,
Fatima Nagaria, Roxanne Vara, John Broman, Tyishka Wilson, Joya Cooper, Richard Mobe, Kim Tangu, Lana Centonze,
Lisa Sanford, Laura Momplet, Johnnie Lister, Khadija Siddiqi, Peggy Miller, Asheli Atkins, Jon Bailey, Anna John,
Alicia Duplechain, Jasmine Sardana, Shi Ronda Jackson, Tanya Wallace, Bharathi Veeramachaneni, Shirley Cherian,
Terrick Smith, Elverez Allen, Hafsa Hussaini, Judith Igwe, Tiffani Pierson, Athena Williams, Terry Scott, Shante Romant,
Margie Scott, Natashia Williams, Marci Parker, Rochelle Overstreet, Rodrick Washington, LT Bozeman, Rebecca Montz,
Lavett Wallace, Gloria Scott, Toranio Oliver, Hieu Huynh, Kevin Goertz, Abigail Jimenez, Emily Goertz, Tiffany Thompson,
Maretta Williams, Pam Dedmon, Angie Singh, Jeff Monk, Nailah Butler, Jessica Yere, David Cantu, Tiffany Jefferson,
Carl Collins, Ndidi Ayoola, Dawm Onusko, LaKenya Thomas, Demetra Papapanagiotou, Deric Hebert, Jeffrey Allahar,
Tamara Carter, Lisa Layfayette, Reggie Schexnaider, Natalie Alexander, Sherrie Jack, Varfeeta Sirleaf, Tien Doan,
Babatunde Akinfenwa, Bindu Varghese, Sheila Quinn, Eazran Baldwin, Denisea Woodard, Yadira Tolentino, Kevin Pair,
Noelle Sims, Kim Mathes, Tanya Bellard, Lawanda Maxwell, Kandice Mott, Aleece Hobson, Fatemeh Borhani, Sheila Echo
Toni Berthia, Sam Thakachan, Brian Reichenbach, Tunesha Banks, Ray Chacko, Valerie Cooper, Elit Gonzalez,
Natalie Ha, Debbie Houck, Kimberly Williams, Van Chau, Cassandra Sonnier, Phung Phan, Timothy Henry,
Lamonde Granville, Dominica Briscoe, Craig Johnson, Lisa Edwards, Ana Cazares, Judith Odityo, Veronica Ramirez,
Lariza McBean, Kandace Simmons, Eloise Williams, DeBorah Johnson, Cristal Clark, Priya Punugoti, Gineen Thompson,
Charisse Acosta, Ebonie Fields, Ashley Simms, Marcus Green, Dominique Agnew, Pricilla Martinez, Alejandro Barboza,
Lacy Haney, Trisha Henderson, Kanitra Taylor, Kevin McCurdy, Luis Benavides, Linda Bibbs, Janice Mayers,
Tiffonya Yokima Davison, Carl Branch, Trent Coots, Bejaye Ilegbodu, Annette Lilly, Krista Stegemiller, Francisco Sanchez,
LIsa Dean, Marian Harper, Joshua Kisuuli, Carol Boswell, Monica Mallett, Chasity Cofield, Salima Hirani, DeNelly Montrose,
Jo Carcedo, Erika Brown, Pierre Epalle, Chris Bauri, Brandi Woods, Sarah Ilanga, Alfredo Perez, Brittney Sanders,
Eva Mercado, Christina Holly, Roseann Martinez, Chate Enyard, Morgan Wilson,
Tatiana Potinga, Karina Guzman,
Lynette Montgomery, Amy Quintero, Matori Bowie, Maly Masters, Christopher Henry, Erica Meza, Sandra Tome, Lystra McCoy


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All postings on this page are for educational purposes for those enrolled in Steve's marketing classes