Hard goods (Durable goods)

Hard goods feature longer periods of successive purchases. Unlike soft goods, they do not completely wear out and could be used longer than 3 years. Durable stuff at home include furniture, kitchen appliances, family car while the soft is represented by personal care cosmetics, detergents, gasoline, etc.

Ad-hoc

Generally “when and as required”, i.e. applied “one-off”, unlike standard, continuous processing.

Closed-loop marketing

The kind of marketing relying on data based insights regarding leads and customers. Usually such data is provided by sales people who report to the marketing specialist within the company info on the status of a situation before reinforcements with certain actions and data on the change with situation after that, i.e. the “loop” lying between the stimuli and the effects.

Marginal rate of substitution (MRS)

1) The extension of the rate on the Indifference curve at which a consumer would give up using one product/ service and switch to another one. For example, the more frequent the consumption of a product with a certain brands name is, the more likely it becomes for the consumer to start using the same product with a new brand soon instead, i.e. in this case the MRS decreases. This example illustrates the principle that the more a good is used the less is satisfaction of each additional unit.
2) The number of units of one product (i.e. hamburgers) that a consumer is ready to give up in order to obtain 1 extra unit of another product (i.e. a beer).

Flighting (Flight scheduling)

The type of a pattern in media planning aimed at achieving certain saturations of ad messages over strategic short periods within an ad campaign instead of running them steadily over its entire continuity. The succession of heavy advertising delivery is usually over 2 weeks.

See also: Continuous pattern, Pulsing, Continuity, Flight

Differential marketing

Differential marketing strategies allowing marketers to tailor offers out of large product assortments and address efficiently the correspondent target audiences. This approach implies that different customers are treated differently in running marketing initiatives, i.e. direct mail offer designed in the looks and calling the action of a specific group of customers rather than sending out a typical offer to the whole mail list.

Sourcing Fashion merchandisers

Procurator for negotiating the various terms and conditions and successful delivery of  all necessary raw materials for fashion products’ manufacturing. Regarding manufacturing of fashion items this agent holds significant role having in-depth understanding of fabrics, textiles and the raw materials that helps the realization of a designer’s vision into a physical item ready to be placed on the market. Creative mindset along with excellent communication skills are crucial for such a position in this field.

See also: Fashion merchandisers, Production Fashion merchandisers, Retail Fashion merchandisers

Indifference curve

A graph used to illustrate the effect of different quantitative combinations of goods on consumer satisfaction and behavior. A quantity of one good is shown on axis x and a quantity of another one – on axis y. The curve that is formed illustrates that certain consumers are equally satisfied at each curve’s point.

Behavioral self-management

Applying specific procedures by a sales person that are conducted to improve performance and to achieve better sales results, for example tracking time per call in telemarketing, setting certain norms at new account opening, exploring certain sales techniques on regular basis, etc. Behavioral self-management enhances sales skills and capabilities by monitoring and adjusting one’s own practice.

Continuous pattern (Continuous scheduling)

The type of a pattern that is applied by media planners whereby ad messages are placed at regular intervals and persistent series over some period of time.

 See also: Flighting, Pulsing, Continuity, Flight

Cognitive age

The perceived age of an individual which is usually 10-15 years younger than his or her biological age. Cognitive age varies widely with individual years of age and it is also influenced by factors as his or her health condition, education level, social status - the more of each of these three, the lower is Cognitive age. In the context of  Consumer  behavior, it could be stated that a wide range of attitudes and consumption behaviors are associated with Cognitive age rather than the actual chronology of the biological age.

Fashion forecasting

Analysis aimed at predicting fashionable colors, patterns and styles to be on trend in advance, i.e. anticipating customers needs and attitudes to apparel and accessories by main players in Fashion industry – designers, merchandisers (Fashion merchandisers) and buyers. It is most appropriate that such analysis is properly conducted for at least 2 seasons ahead.

Product alliance (Service alliance)

Strategic partnership between two/ several companies that may be motivated by various reasons (lower production costs/ marketing costs). By virtue of such alliance two or more business entities agree to act jointly on the market for their new or existing products (or services)

Merchandise management

Referred to department stores, it is the analysis and planning of successful handling, acquisition and control of retail investments. It is crucial to evaluate consumer behavior and purchasing habits in this field for better inventory, stock and sales planning.

See also: Inventory planning, Financial merchandise management, Retail shrinkage, Pay from scan

Signal overspill (Cross-border overspill)

The spread of radio/ TV waves outside administrative constructs since the technical spectrums cannot be restricted only to national/ regional borders, lines, etc.

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.

Product development prescreen

One of the first initial steps from product development processing after the idea generation whose purpose is to preliminary evaluate market performance, to test, and also to analyze new product’s initial concept.

Fashion merchandisers

Professionals in the Fashion industry who specialize varied set of activities and operations which are being activated after fashion designers accomplish outlining their projects in order for the layouts to become retail items. The final goal of successful Fashion merchandising process is to ensure that the right fashion item (product) is released in the right store, at the right time and in the right quantities, available for purchase from consumers. The best way scenario is when Fashion merchandisers work closely with the Fashion designers – since the first ones would provide their expertise in things like fabrics price and target market, while the latter would incorporate forecasting and analyses into the creative projects.

See also: Fashion merchandise, Sourcing Fashion merchandisers, Production Fashion merchandisers, Retail Fashion merchandisers

Informational advertising (Rational advertising)

Certain approach that utilizes rational strategies in convincing consumers to buy a product or choose a brand. Informational ads usually call consumer cognitions, needs, and routines. Very often marketers even combine Informational with Transformational  advertising, thus calling rational and emotional reaction at the same time, for example a warm feeling of a cup of coffee (irrationality, emotion) as a day-starter (every day, routine).

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.

Trickle-across theory

Fashion (or consumer trends) originate from several socioeconomic groups simultaneously with varied quality and ranges – the prevalent understanding of 21st century.

See also: Trickle-down theory, Trickle-up theory

Ratner effect (Doing a Ratner)

The term was coined in 1991 after the British jewelry businessman Gerald Ir. Ratner who pronounced a notorious speech while jokingly referred to his company’s products in public as “total crap” thus causing his own business to decline. Ratner himself explained this tremendous gaffe saying that he did not mean to be taken seriously.

Product diversification

Strategic expansion of existing products through exploiting additional market potential. Diversification is achieved by entering additional market and/or by strategizing pricing. Very often products are also being improved into their new versions and placed on new markets and/ or on new price levels.

Osborne effect (Osborne myth)

Negative effect on sales and company’s credibility as a result of improper  pre-announcement of a new product. One of the immediate outcomes of it is that customers that might have placed orders on the current product would choose to cancel them in order to get the new version later on. This term was introduced in 1980s after the real company “Osborne Computer Corporation” went bankrupt after misjudging time period between a new product announcement and launching it actually on the market.

Trickle-down theory

Trend-setters originate from high socioeconomic levels and trend adopters who accept new movements belong to levels of lower standard status.

See also: Trickle-up theory, Trickle-across theory

Opinion leaders

Members or professionals within a particular consumer group who have significant influence on others because of their special achievements or background. Since the opinion leaders very often direct other consumers to buy and use certain products, and also certain brands, it has always been of concern for the marketers to distinguish opinion leaders in order to approach them efficiently.

Fashion cycle

Period of time during which a certain style of apparel and type of accessories in fashion industry go through certain stages of rise, peak and abandonment and after that preferences change into another fashion mode. Fashion traits first gain acceptance and after some time lose it with consumers’ needs for fresh and new methods in this field.

Trickle-up theory (Prole drift)

Consumption trends featuring movements that were initially generated and typical among members of lower social-standing levels and gradually gained acceptance by consumers from higher socioeconomic levels, for example punk style, sports apparel, jeans, etc.

See also: Trickle-down theory, Trickle-across theory

Vendor profitability analysis

Tool of statement applied to evaluate gross margin that was earned from a vendor’s merchandise by tracking down all annual sales from the previous year, including the retrace of all discounts, markups, transportation costs, etc.

Customer value model (CVM)

CVM combines qualitative with quantitative approaches to researching how customers from targeted segments on the market rank among quality, image and price of a brand. This kind of analysis weighs the significance of each of the above separately according the consumers’ expectations and should guide marketers’ through splitting their efforts efficiently before launching/ developing new products (or services) and setting sales tools.