Sales funnel

Visual framework that illustrates the sales process in every stage and helps marketing and sales managers in measuring opportunities and planning various campaigns. If the Sales funnel is properly set up according the specifics of a business and the right metrics, its model would successfully provide structured reports and distinguish between monotonous data.

See also: Research and development, Audience profile, Benefit segmentation

Case rate (Case price)

Pricing estimation methodology providing account for marketing and production/ preparation costs for new products and services under ideation that usually feature certain specialization, for example, a telecom company estimating its associated costs for the possibility to launch newly packaged services in a bundle to the needs of a specific target group. Its consideration helps assessing possible revenues from a tailored offer to the market and whether it is worth the launch and maintenance; if it needs certain fixing of its parameters, or it would be better that the ideation is abandoned for some other, more profitable efforts.

Target rating points (TRPs), Gross rating points (GRPs)

TRP as a measurement in marketing is focusing on that ratio of all recipients through the whole reached audience (i.e. through the Gross rating points – GPRs) that are considered to be the “right target” for a specific product and/or service. TRPs are thus subdivisions out of GPRs. For example, an advertiser spends in a campaign using radio as a channel to reach all men in a region (GPR) while the core target for his products are men 35-55 years of age (TRP). Determining both in a right way is critical to employment of marketing channels of communication

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.

Media mix

The package of media vehicles employed during advertising campaigns. There was a time when TV, magazines and radio were the only means used in national campaigns because they reached the targets most widely. Over the last decade, however, things have significantly changed into increased advertising costs of traditional media, clutter between various online/ offline channels and smaller groups of audiences reached. That is why a media mix today may include quite unpopular forms of media to reach specific target cost efficiently.

Retailer’s coverage

The theoretical maximum percentage of a retailer’s target market that can be reached by an advertising medium, not the percentage actually reached.

Geo-demographic targeting

Reaching target audiences by use of geographic and demographic classifications of residential neighbourhoods.

Benefit segmentation

A type of market segmentation base in which target segments are divided by various benefit packages that different customers want from the same product category. In many product categories it is an effective base for segmenting a market. For example Dettol soap in India has been targeted to the hygiene conscious consumer—the individual seeking protection from germs and contamination—rather than the consumer looking for beauty, fragrance, freshness, or economy.

Probability sampling

A sampling procedure in which each element of the population has a known non-zero chance of being selected for the sample. The chances of each member of the population being included in the sample may not be equal, but every one has a known probability of inclusion. That probability is determined by the specific mechanical procedure that is used to select sample elements. In this type of sampling, it is required that not only precise definition of the target population, but general specification of the sampling frame have to be clearly stated because sample elements are selected by chance, it is possible to determine the precision of the sample estimates of the characteristics of interest.

Market positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Audience duplication

Enhancing the learning effect by placing the same message such as an advertisement in different media reaching a single target audience.

Consumer jury test

A method of pretesting advertisements by using a panel of consumers who are representative of the target audience and provide ratings, ranking, and /or evaluation of advertisement.

Concentrated media mix

A media mix option that will be used to effectively reach the target audience.

Refutational appeal

A type of message in which both sides of the issue are presented in the communication, with arguments offered to refute the opposing viewpoint. As refutational appeals tend to ‘inoculate’ the target audience against a competitors counter claims, they are more effective than one-sided messages in making consumer resistant to an opposing message.

Two-factor evaluations

It is one of the approaches used for conjoint analysis stimuli. In two-factor evaluations, also called pairwise approach, the respondents evaluate two attributes at a time until all the possible pairs of attributes have been evaluated.

Break-even pricing (target profit pricing)

Setting price to break even on the costs of making and marketing a product; or setting price to make a target profit. Target pricing uses the concept of break-even chart, which shows the total cost and total revenue expected at different sales volume levels.

Ethnic niches

Specifically targeting marketing efforts toward narrow ethnic groups or subgroups. For instance, Hispanic: Puerto Ricans, Cubans, Mexicans, etc; blacks, Asians, and so on.

Creative strategy

It involves determining the basic appeal and message the advertiser wishes to convey to the target audience. There are a number of approaches for creative strategy development process.

Advocate channel

One of the types of personal communication channels available to a marketer. Advocate channels consist of company’s sales people who contact buyers in the target market.

Pricing studies

One of the types of marketing research conducted by a company, which is undertaken to determine the possible price range for a specific product or brand which may be acceptable to the target market. It is also done to find out the possible reactions of consumers and competitors in the case of any price change.