marketing - glossary

The sales forecast is the expected level of company sales based on a chosen marketing plan and an assumed marketing environment.

Sales promotion refers to any activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telephone-selling, personal letters on other methods.

A small group of items selected from a larger group to represent the characteristics of the larger group. Samples are often used in marketing research because it is not feasible to interview every member of a particular market; however, conclusions about a market drawn from a sample always contain a sampling error and must be used with caution. The larger the sample, in general, the more accurate will be the conclusions drawn from it

Secondary market data is data that has already been obtained, analysed and used for other purposes or for general reference

The dimensions or characteristics of individuals, groups or businesses that are used for dividing a total market into segments.

Selective distribution involves a producer using a limited number of outlets in a geographical area to sell products

Soft goods are similar to consumer durables, except that they wear out more quickly and therefore have a shorter replacement cycle. Examples include clothes and shoes.

Supporting an event, activity or organisation by providing money or other resources that is of value to the sponsored event. This is usually in return for advertising space at the event or as part of the publicity for the event.

A term used in the Boston Group Matrix. Stars are high growth businesses or products competing in markets where they are relatively strong compared with the competition. Often they need heavy investment to sustain their growth. Eventually their growth will slow and, assuming they maintain their relative market share, will become cash cows.

A slogan often used in conjunction with a brand name, advertising and other promotional methods (e.g. “Guinness is good for you”)

A SBU is a unit of the company that has a separate mission and objectives and that can be planned independently from the other businesses. An SBU can be a company division, a product line or even individual brands - it all depends on how the company is organised.

A sampling method in which the population of interest is divided according to a common characteristic or attribute and a probability sampling is then conducted within each group

Strengths are a particular skill, resource or distinctive competence which the business possesses and which will enable it to achieve its stated objectives. Strengths are a source of competitive advantage. As such they should be protected and built upon.