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Glossary of terms
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 the 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.)
Bundling | Combining products as a package, often to introduce other products
or services to the customer. For example, 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.
Buttons | Objects that, when clicked once, cause something to happen.
Buying behaviour | The process that buyers go through when deciding whether
or not to purchase goods or services. Buying behaviour can be influenced by a
variety of external factors and motivations, including marketing activities.
Campaign | Defines the daily budget, language, geographic targeting and location
of where the ads are displayed.
Cash cow | See ‘Boston matrix’.
Category management | Products are grouped and managed by strategic business
unit categories. These are defined by how consumers view goods rather than by
how they look to the seller, for example, confectionery could be part of either a
‘food’ or ‘gifts’ category and marketed depending on the category into which it
is grouped.
Channels | The methods used by a company to communicate and interact with its
customers, like direct mail, telephone and email.
Characteristic | Distinguishing feature or attribute of an item, person or phenom-
enon that usually falls into either a physical, functional or operational category.
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.
Click | The opportunity for a visitor to be transferred to a location by clicking on
an ad, as recorded by the server.
Clusters | Customer profiles based on lifestyle, demographic, shopping behaviour
or appetite for fashion. For example, ready-to-eat meals may be heavily influ-
enced 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.
Code | Anything written in a language intended for computers to interpret.
Competitions | Sales promotions that allow the consumer the possibility of win-
ning a prize.
Competitors | Companies that sell products or services in the same marketplace
as one another.
Consumer | A purchaser of goods or services at retail, or an end user not necessarily
a purchaser, in the distribution chain of goods or services (gift recipient).
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