Minimum Viable Product (MVP)

A new product development technique for startups, hi-tech products, web application, and others that became popular after 2008 with the posts from Eric Ries  – a famous startup entrepreneur and author of the book “The Lean Startup”.

MVP is providing an initial version or prototypes of a new product (service, experience) with a minimum set of features, aimed at a minimal target of possible customers who are known to grasp novelties even from an early prototype (early  adopters) and who are meant to provide feedback for further developments. The process of prototyping continues until the new product crystallizes and fits to the market based on the findings from feedback, learning and testing of the early versions.

Lean marketing (Startup marketing)

Agile marketing methodology promoted by Eric Ries’s “The Lean Startup” that evades the traditional waterfall processes of briefing, planning, designing, approving, testing and launching thus leading marketing steps faster ahead and starting a new product into much shorter marketing cycles than the usual ones in the traditional processing.

Countertrade (Counter-trade)

Since money and credit are involved, this term should be distinguished from “barter”. Countertrade arranges transactions between buying and selling companies in terms of goods and services and set in an agreement.

Multiple-Unit Pricing

Pricing strategy aiming at convincing customers to buy more, spending less. Offers of that kind usually set one price for purchasing several things in a pack, e.g. special store offer for three dessert bars in a bundle for Ђ1.

Strategy mix

In the context of retail management it refers to a firm’s particular combination of store location, operating procedures, goods/services offered, pricing tactics, store atmosphere and customer services, and Promotional methods.

Cutting score

Term used in discriminant analysis to indicate the score that divides the groups with respect to their respective discriminant scores; if the object’s score is above the cutting score, the object is assigned to one group while it is assigned to the other group if its score is below the cutting score.

Terms of occupancy

Consist of ownership versus leasing, the type of lease, operations and maintenance costs, taxes, zoning restrictions, and voluntary regulations.

Structure (questionnaire)

Degree of standardization imposed on the data collection instrument. A highly structured questionnaire, for example, is one in which the questions to be asked and the responses permitted subjects are completely predetermined, while a highly unstructured questionnaire is one in which the questions to be asked are only loosely predetermined and respondents are free to respond in their own words and in any way they see it.

More usage strategy

A market expansion strategy where a company tries to convince people to use more product per use occasion. For example, shampoo manufacturers may convince consumers to use more shampoo by printing the directions on the label of the package.

Triad strategy

A strategy proposing that a multi national corporation (MNC) should have a presence in Europe, the United States, and Asia (especially Japan).

Strategic planning

The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies.

Standard market test

A type of market test where the product is sold through regular marketing channels to a predetermined sample of marketing areas (typically 2 or 3) using one or more marketing strategies. Selection of the sample of test areas is a critical issue.

Concentration media scheduling

One of the patterns of media scheduling which calls for spreading all the advertising expenditures in a single period. This makes sense for products with one selling season or holiday.
see: Concentration strategy

Sourcing strategy

The strategy that a company pursues in purchasing materials, components, and final products; sourcing can be from domestic and foreign locations and from inside and outside the company.

Ballot method

A strategy of mailing target consumers, a list of promotional options and asking them to rank their preferences and mail the ballot back to the firm.

F test

One of the statistics associated with multiple regression analysis. The F test is used to test the null hypothesis that the coefficient of multiple determination in the population, R2 pop is zero. This is equivalent to testing the null hypothesis H0: β1 = β2 = β3 = … = βk = 0. the test statistic has an F distribution with k and (n – k – 1) degrees of freedom.

Patten advertising

Advertisements that follow a basic global approach although ad themes, copy, and sometimes even visual elements may be adapted to differences in local markets. Many global marketers use this advertising strategy

Psychological pricing (Odd pricing)

A pricing approach that considers the psychology of prices, pricing above competitive levels, raising an unsuitably low price to increase sales, and price lining, and not simply the economics; the price is used to say something about the product. Odd pricing, another psychological pricing strategy, is commonly used in retailing. Odd pricing sets prices at uneven (or odd) amounts, such as 990 rupees, rather than even amounts. The rationale for odd pricing is that it suggests lower prices and, as a result, yields greater sales than even pricing.

Category based strategy

A concept used in the information processing for the evaluation of various brands by the consumers. It involves evaluation of a brand as a totality rather than a specific attribute. Such brand evaluation requires development of a schema for the brand so that consumers can retrieve a set of associations as a whole from long term memory. On this basis, they can quickly compare brands and establish a preference.

Result-based pricing

One of the pricing strategy that may be used in certain types of services in which the outcome is very important but uncertainty is high and the most relevant aspect of the value is the result of the service. For example, clients value the settlement they receive at the conclusion of a legal case. Similarly, clients value cost saving from tax consultants, while students are willing to pay higher fees to business schools in the hope of getting better job offers. In these and other situations, an appropriate value based pricing strategy, is to price on the basis of results or outcome of the service.