Replacement Cycle

Positioning – An advertiser’s strategy in creating a particular image with consumers for a product, brand or service that distinguishes itself from that of product references can be created.

Preferences – A particular product or service is perceived as better or more attractive so long as a comparison with another can be made.

Price – 1. The value of a product, brand or service expressed in money terms. 2. An exchange value (for example one kilo grain = one gold ring)

Price Consciousness – Syn: Price awareness Consumer’s knowledge of the prices of a group of articles and sensitivity in the purchase decision process.

Product Differentiation – The ways in which (competitive) products, brands or services are distinguished from each other by particular unique qualities or characteristics. Often employed by manufacturers and advisers to enhance product attractiveness. See also: Product benefit

Prognosis – Syn: Forecast See: Forecast

Prospects – Syn: Target group See: Target Group

Prototype – The first complete working example of an object, product, etc. Only when it has been tested and checked, with or without some design alterations, can mass production activities begin.

Psychological Price – Syn: Charm Price A frequently used pricing technique whereby product, brand or service prices are set just below a particular “barrier” level, for example $5.99, $0.99. $1.49, $99.50, etc.

Purchaser – Syn Customer/Client/Consumer/Patron See: Consumer

Purchasing Agent – Syn: Buyer See: Buyer

Rational Motive – The motive of a consumer or buyer that is arrived at for well-considered and logical reasons. Pure rational motives are rare, even with house buyers 9who can “fall in love”) or industrial buyers (who often give an order to a pleasant/charming sales person provided the price is acceptable) See also: Emotional motive

Repeat Purchase – The second or following purchase(s) of a product after its initial purchase (after launch of this product). This later purchase is extremely important. Its absence suggest consumer dissatisfaction. See also: Initial purchase

Replacement Cycle – The periodic replacement of products for economic (maintenance costs), technical (capacity) or psychological status) reasons. In some markets, replacement is the major market activity (e.g., cars, refrigerators, washing machines).

Retail marketing – All marketing activities in the domain of the retail trade. The application of the marketing philosophy within the retail trade. See also: Marketing

Risk Perception – Every purchase possess a risk for the purchaser. The following risk may be identified:
1. Social risk (e.g., husband does not appreciate new dress bought by his wife)
2. Physical risk (e.g., the danger of a holiday on the moon or under water)
3. Psychological risk (e.g., can a boxer use a beauty cream? Does this correspond to his self-image?)
4. Functional risk (e.g., will all the features of a video recorder shown in an advertisement work faultlessly?

Satisfaction – Ultimate aim of any consumer purchase. It is not necessarily realistic, but the consumer must believe it to be so. Often used but usually, inaccurate term.

Seasonal Pattern – Consumer behavior and advertising that are influenced by seasonal factors. Examples: ice cream, soft drinks, beer (spring/summer) winter clothes, umbrellas (autumn/winter), holidays (various ‘peaks”)

Seasonality – The influence of the season or time of year on turnover. Most sectors are to a lesser or greater extent sensitive to the seasons. Some examples: umbrella sales in November, travel insurance in the summer months, ski sales in autumn and winter.

Segment – A part of the population that is homogeneous from the point of view of a number of variables such as attitude, taste, behavior, demographic characteristics, etc., but also region, size or type. See also: Attitude/Demographics

Segmentation – The classification of a population into segments. The objective of this exercise is to identify retroactively subgroups for marketing and media selection purposes. Often done with the help of the computer. See also: Segment/ Segmentation analysis/ Market segmentation

Seller’s Market – Situation in which the sellers have more power and influence and can , for example, largely dictate prices to buyers. This is often the result of serious market disturbance or excess demand, for example in war. Examples might be high prices of coffee after a poor harvest, tend products, photocopiers in the 1960’s. See also: Buyer’s market

Social Marketing – Syn: Non-profit marketing/Meta marketing
Marketing policy and activities undertaken for or by non- commercial organizations such as museum, sports clubs, hospitals, universities, etc.

Speculative Forecasting – Forecasting that produces subjective probability judgments on the occurrence of new developments or events.

Strength/weakness Analysis – Generally a short description of the strong (positive) and weak (negative) aspects or characteristics of a product, service or organization. A strength/weakness analysis is often executed on the basis of research results obtained. It is thus an inventory of the strengths and weaknesses that emerge from a research project, e.g., strength: relatively high market share in large cities and in more expensive models; weaknesses: low market share in higher social classes and relatively high complaint levels vs. most important competitors.

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