marketing - glossary

The last stage of a product's life cycle, during which sales fall rapidly

Demographic segmentation consists of dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality

A lengthy, one-to-one structured interview, examining in detail a consumer's views about a product

A marketing strategy aimed at ensuring that products and services have a unique element to allow them to stand out from the rest

The delivery of an advertising or promotional message to customers or potential customers by mail.

The planned recording, analysis and tracking of customer behaviour to develop a relational marketing strategies

Direct response advertising is that which incorporates a contact method such as a phone number, address and enquiry form, web site URL or e-mail address. This is done with the intention of encouraging the recipient to respond directly to the advertiser by requesting more information, placing an order etc. The use of this technique on television is commonly referred to as DRTV advertising

The network of organisations necessary to distribute goods or services from the manufacturers to the consumers; the distribution channel therefore potentially consists of manufacturers, distributors, wholesalers, and retailers.

Companies that buy and sell on their own account but tend to deal in the goods of only certain specified manufacturers.

A strategy based on the Boston Matrix. Here the company can divest the SBU by phasing it out or selling it - in order to use the resources elsewhere (e.g. investing in the more promising "question marks").

A term used in the Boston Group Matrix. Unsurprisingly, the term "dogs" refers to businesses or products that have low relative share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in.