marketing - glossary

A term used in the Boston Group Matrix. Cash cows are low-growth businesses or products with a relatively high market share. These are mature, successful businesses with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars.

Disagreement among members of a distribution channel about who should be paid what and what roles each should play. Channel conflict often occurs when a business uses a multi-channel approach to distribution

Cognitive dissonance is an customer effect commonly observed after a major purchase whereby the customer feels uncertainty about whether the purchase should have been made. Post-purchase promotion (particularly advertising) has a role to play to reduce the incidence and effect of cognitive dissonance

A combination brand name brings together a family brand name and an individual brand name. The idea here is to provide some association for the product with a strong family brand name but maintaining some distinctiveness so that customers know what they are getting

A competitive advantage is a clear performance differential over the competition on factors that are important to customers

Competitor benchmarking compares customer satisfaction with the products, services and relationships of the business with those of key competitors

Consumer buyers are those who purchase items for their personal consumption

Consumer durables have low volume but high unit value. Consumer durables are often further divided into White goods (e.g. fridge-freezers; cookers; dishwashers; microwaves) and Brown goods (e.g. DVD players; games consoles; personal computers)

Consumer markets are the markets for products and services bought by individuals for their own or family use

Continuous research involves interviewing the same sample of people, repeatedly

Contribution per unit can be defined as selling price less variable costs. Overall contribution is the difference between total sales revenues and variable costs

The set of problem-solving or need-meeting benefits that customers are buying when they purchase a product. Customers are rarely prepared to pay a premium for these elements of a product.

A strategy of producing goods at a lower cost than the competition. This usually requires the business to enjoy higher economies of scale or have some kind of productivity advantage

Using a customer’s buying history to select them for related offers, e.g. a car alarm for new car buyers.

Consumer demand is a want for a specific product supported by an ability and willingness to pay for it.

Feelings or attitudes that incline a customer either to return to a company, shop or outlet to purchase there again, or else to re-purchase a particular product, service or brand.

A need is a basic requirement that an individual wishes to satisfy.

The provision of goods or services which fulfil the customer’s expectations in terms of quality and service, in relation to price paid

A want is a desire for a specific product or service to satisfy the underlying need.