Deceptive advertising (False advertising)

The practice of using incomplete or misleading information in the adverts, i.e. providers of services that do not inform customers about some surcharges in the price that is announced in an advertisement, i.e. air fair with undisclosed air charges.

See also: Counterfeit goods, Case rate

Royalty revenue

Payments owed by users of intellectual property to the legal owner of it. Patented products, copyrighted works and franchises are usually explicitly subjected to royalties. Contracts could be negotiated into various terms and conditions though it is common that Royalty revenues are agreed based on a certain percentage of income that is obtained using the given property.

See also: Licensing, Super distribution, Stock music, Needledrop

Topple rate (Decrepitude rate)

Global phenomenon that is being attributed mainly to technology developments and fast paced business competition. It is the rate at which industries loose their leading positions over certain periods of years. For example, “midrange” computer industry that became extinct gradually within 20 years between 1970s and 1990s, i.e. Topple rate at this case is about 20 years. It is said that the occurrence of such effect is healthy within advancing economies.

Commoditization

Pricing strategy seeking to deploy standard and cheap technology of production, thus diminishing the differentiation between the manufactured goods. In such situation consumers loose motivation to pay premiums on quality brands since they are offered only look-a-like products and are left to make their choices only on the price.

See also: Product diversification, Result-based pricing, Added value 

Soft goods (Consumable goods)

Non-durable goods completely consumed out in one’s usage over some period of time, usually defined to span for less than 3 years. Besides specific usage, soft goods move faster on the market than hard goods.

Product/ market matrix (Ansoff matrix)

Diversion management tool used to properly link company’s marketing strategy with its strategic directions in general in order to achieve business growth. Its matrix is simple, with four quadrants, designated to draw out current and new product opportunities, correlated to current/ new markets, respectively. This strategic management instrument is also known after the name of Igor Ansoff who introduced it in the late 1950s in his Harvard business reviews.

Congruity of market segments

One characteristic of targeted audiences, referring to the similarity of groups’ features, i.e. behavior, demographics, social status, etc. The more congruous a market segment is, the more efficient marketing efforts are (offerings, discounts, advertising, etc.)

Competitive bargaining power

The ability of two parties to overcome one another at a certain point in time, i.e. the better developed is a business structure the stronger its advantages in front of rivals on the market.

Double marketing jeopardy

Empirical law that states, with a few exceptions, that brands with smaller market shares tend to have both less customers and lower degrees of brand loyalty.

Market mavens

Slang for persons who have solid backgrounds and competencies about a specific market and who know how to make good sales and get best profits.

Market follower

Usually a company taking advantages that leaders create on the market. For example, imitating or copying new products of innovators or joining to the boat of an efficient marketing communication thus gaining its own share without any serious efforts and/or investments.

Markup

The addition on the cost of the merchandise and the selling price on the market. It should be considered at the moment of setting a price for a product to the market and it is an important task in order to generate good profits, cover expenses and not to lose customers. Usually it is set by certain percenage cost-plus. Using percentage cost-plus makes adjustments easier when merchandise selling price change at times.

Market segment product groupings

It refers to placing together of various related products that appeal to a given target market.

Market capitalization

A common measure of the size of a stock market, which is computed by multiplying the total number of shares of stock listed on the exchange by the market price per share.

Market evolution

The process of gradual changes that occur in a product / service market with respect to needs, competitors, technology, channels and other developments. Like products markets evolve through four stages: emergence, growth, maturity, and decline.

Capital market

The market for stocks and long-term debt instruments.

Market-penetration pricing

A type of price setting procedure where the price of a product or service is set at a low level for a new product in order to attract a large number of buyers and a large market share.

Industrial analysis

The assessment of the potential attractiveness of a market. It involves analyzing a particular industry, including competing firms, intermediaries, suppliers and the labour force. A careful picture with analysis of all major aspects helps realistic managerial decision whether introducing an industry into a new market would be profitable or not.

Market profile

A demographic and psychographic description of the people or the households of a product’s market. It may also include economic retailing information about a territory.

Market minimum forecast

The base level sales that would take place without any demand stimulating expenditures. For this reason, it can be called market minimum.