Glossary of Marketing/ Market Research Terms
Acorn: A classification of residential neighbourhoods usually by post code.
Ad hoc surveys: Surveys commissioned by one client.
Aida model of communication: A communication model which tries to achieve Attention, Interest, Desire and Action.
AIMRI: Alliance of International Market Research Institutes.
Advertising Objective: Objective of your communication strategy. To inform of a new development, persuade or remind.
Analysis: This is the processing of data collected within a market research project enabling summary and conclusions in relation to the project.
APG: The Accountant Planning Group (a market research organisation)
APOPO: Association of Political Opinion Polling Organisations (a market research organisation).
AQR: Association for Qualitative Research (a market research organisation)
ASC: Association for Survey Computing (a market research organisation)
Balanced Scale: Used in questionnaire formats. A balanced scale is one in which the number of positive and negative categories are equal leaving the respondent with a fair decision.
Bar Chart: A chart which displays data in the form of bars either vertically or horizontally with the length of the bars relating directly to their value.
Base: The number of people answering each question on a questionnaire.
Benefit: The gain by using a particular product or service. Customers purchase products/services because they wish to obtain these benefits.
Benefit Segmentation: Dividing a market by the benefits by the benefits they wish from a particular service.
BHBIA: British Healthcare Business Intelligence Association (a market research organisation).
BIG: Business Intelligence Group (a market research organisation).
BMRA: British Market Research Association.
Brand Name: Name, term, sign or symbol used for the identification of goods or services.
Brand extension strategy: Using an existing brand name to extend onto the range of products or services offered.
Break – even: the point for a business when company sales are equivalent to all costs.
BSPS: British Society of Population Studies (a market research society)
Business to Business Research (B2B): B2B research is research that relates to business rather than consumers.
CAPI: Computer Assisted Personal Interviewing – basically interview is conducted on a computer rather than paper questionnaire.
Cash cow: A product or service which generates cash for the business and is used to finance other areas of the business.
CATI: Computer Assisted Telephone Interviewing.
CIM: Chartered Institute of Marketing.
Client: A client is anybody, be it an individual, organisation, department or division, who is responsible for subscribing to the market research project.
Closed -Ended Question: A question asked which can only be answered specifically. It is used in qualitative research and is usually in a tick box style.
Competitive advantage: When offering a different benefit to that of your competitors.
Competitor Analysis/Profiling: Process of understanding and analysing competitor’s strengths and weaknesses in order to determine a competitive positioning difference within the market.
Competition Pricing: Setting a price in relation to competitors.
Concept Testing: Testing the idea of a new product or service with target sector clients.
Concentrated Marketing: Where the organisation concentrates its marketing effort on one particular segment.
Behavioural Segmentation: Research carried out studying behaviour patterns in relation to benefits, occasion and usage.
Brand Repositioning: Attempting to change customer’s perceptions of a brand.
Co-operative Studies: Surveys sponsored by a number of clients, mostly sharing the same agreed data.
Data: Observations or measurements made that apply to an area of the marketing system.
Desk Research: This is a research technique which involves the researcher collating and drawing together secondary sources of information.
Direct Marketing: Sending promotional materials to a named person in an organisation.
Diversification: Growth strategy which involves an organisation to provide new products or services which could be related or unrelated to the organisations core activities.
Demography: A study of the population.
Demographic Segmentation: Dividing the population into age, gender, income and socio – economic groups amongst other variables.
DMA: Direct Marketing Association (a market research association).
Early Adopter: Those that adopt a product or service in the early stages of its life cycle.
Early Majority: Those that adopt a product or service after it has been established and accepted as the standard.
Editing: Editing is the procedure that takes place in order to ensure that questionnaires have been completed correctly.
Engel’s Law: Suggests that peoples spending patterns change as their income rises.
ERG: Employee Research Group (a market research group)
ERN: Employee Research Networks (a market research group)
Exclusive Distribution: Limiting the distribution of a product/service to a particular company.
Econometric Modelling: Application of regression techniques in marketing analysis.
ESOMAR: World Association of Opinion and Marketing Research Professionals – www.esomar.org
Factor Analysis: A multi-variate, data reduction technique. It aims to summarise a large number of variables with a small number of factors.
Filter: When only a section of the total sample are required to answer the question, e.g. if the question asks why people are dissatisfied with a particular service, only those who are dissatisfied should answer the question. Those who are satisfied move on to the next question.
Focus Groups: Interview conducted simultaneously amongst 6 – 8 respondents with the aim to obtain qualitative information on a given topic.
Geodemography: The study of population characteristics (such as age, sex, tenure, working status) set within a spatial context.
Geographic Segmentation: Dividing the market into certain geographic regions e.g. towns, cities or neighbourhoods.
GIMRA: General Insurance Market Research Association (a market research association).
Growth Rate: Usually measured as a percentage, growth rate records the changing size of a population by plotting the change from a specific point in time.
Guesstimate Questionnaire: Where people are asked to guess the results of a survey in the questionnaire which is then compared to the actual results of the survey to assess how closely perceptions match reality.
Homogenous Groups: Groups in which people or objects are extremely similar if not identical in their characteristics or behaviour.
Household: The generic term used to describe every person living in one unit of housing.
ICG: Independent Consultants Group (a market research group).
IDM: Institute of Direct Marketing (a market research organisation).
IPA: Institute for Practitioners in Advertising (a market research group)
IPR: Institute of Public Relations (a market research organisation)
Innovator: Those consumers who are the first to adopt a product or service at the beginning of its life cycle.
Intensive Distribution: Distributing a product to as many outlets as possible.
IQCS: Interviewer Quality Control Scheme Standards.
Laboratory Experiments: This term relates specifically to experiments that are carried out in a controlled environment.
LARIA: Local Authority Research and Intelligence Association (a market research association)
Lifestyle segmentation: Analysing consumer’s activities, interest and opinion (AIOs) to develop a profile on a given segment.
Marketing: The management process responsible for identifying, anticipating and satisfying customer requirements profitably.
Market Development Strategy: Selling an existing product or service in a new and developing market.
Mass Marketing: The promotion of a product or service to all potential customers.
Marketing Mix: An organisational strategy comprising, products, price, place and promotional strategy.
Marketing Planning: A document that contains plans of the marketing activities of an organisation for a period. The document normally covers environmental analysis, marketing mix strategies and any contingency plans should the organisation not achieve their objectives.
Market position: A consumer’s perception of where the product or organisation stands in the market.
Market Research: Involves researching specific industry’s or markets, analysing and collecting data on the environment, customers and competitors for the purposes of decision making.
Market Research Brief: A basic plan which guides the data collection and analysis phases of the research project.
Marketing Research: Marketing Research goes further than Market Research it researches the reasons for marketing performance changes and put forward solutions to the problem.
MORI Excellence Model: A model developed by MORI to show attitudes towards companies.
MR: Market Research.
MRQSA: Market Research Quality Standards Association.
MRS: Market Research Society – www.marketresearch.org.uk
MTS: MORI Telephone Surveys.
Multiple Choice Questions: A question which the respondent may only answer within a predetermined selection of responses.
Niche Marketing: The process of concentrating resources and efforts on one particular segment.
Omnibus: Surveys conducted regularly by a research agency, but which can be sponsored by a number of clients who do not share the same data but who buy access to a survey and questions to meet their individual needs.
Open Ended Questions: Questions which encourage the respondent to provide their own answers (who, why, what, when, which, where, how).
PAF: Postal address file.
Paretos Law (80/20): A rule which suggests 80 % of a company’s performance say sales is generated by 20% of the customer base – can be applied to other areas e.g. profit etc.
Penetration Pricing: A company pricing strategy targeted to achieving increased market share by lower pricing.
Perceptual Map: Mapping a product or service alongside all competitors with the objective of finding a ‘positioning gap’ in the given market sector.
Personal Selling: Selling a product or service one to one.
Pie Chart: A circle which is divided into segments which vary in size relating to the value which they represent.
Primary data: The process of collecting and organising data for an organisation.
Product Development Strategy: The development of a new product/service aimed at the organisations existing market in order to increase sales/share.
Product Life Cycle: The life stage of a product which includes introduction, growth, maturity and decline.
Product Cannibalisation: Loosing sales of a product to a similar within the same sector.
Psychographics Segmentation: Where research is carried out to review lifestyle, social class and personality.
Public Relations: The process of building good relations with various organisational stakeholders by issuing press releases to press, trade journals etc about the company’s activities.
Relationship Marketing: Creating a long-term relationship with existing customers with the aim to build strong customer loyalty.
Respondent: Those taking part in the research.
Sales Promotion: An incentive to encourage the sale of a product or service e.g. introductory discount, buy one get one free, coupons etc.
Sample: A subset of cases or elements selected from a population.
Sampling Frame: The list from which the sample is selected.
Sample Profile: Using Census and other data gives a profile of people living in a certain area i.e. the percentage of 16-24 year olds, the percentage of Abs etc. Ensures those interviewed are representative of the local population.
Secondary Data: Researching information which has been already published.
Segmentation: The process of dividing a market into groups that display similar behaviour and characteristics.
Self Completion Surveys: Are a traditional, cost effective and visible way of consulting residents and users.
Show cards: Cards with a list of responses/categories from which the respondent has to choose.
Single Coded Questions: Where respondents are forced to give a single response to a question.
SRA: Social Research Association – www.the-sra.org.uk
Skimming Pricing: A pricing strategy where an organisation sets an initial high price and then slowly lowers the price to make the product or service available to a wider market.
SWOT Analysis: A model used to conduct a self appraisal of an organisation. The model looks at internal strengths and weaknesses and external environmental opportunities and threats.
Test Marketing: Testing a new product or service within a specific area before a national launch.
TIRS: Target Instant Response Service: In other words, Omnibus leads for ad-hoc surveys.
Tracking Surveys: Surveys repeated using the same questions and methodology in order to monitor changes in attitudes or behaviour.
Trend Data: repeat surveys showing how views on a particular topic have changed over time.
Topic Guide: A check list/aide memoir which simply lists the topics for discussion to help the researcher.
Usage Segmentation: Dividing your company sales into different types of users e.g. none, light, medium or heavy users.
Undifferentiated Marketing: Sometimes referred to as mass marketing. Company may decide to aim its resources at the entire market with one particular product.
Qualitative Research Data: Focuses upon people’s opinions and attitudes towards a product or service.
Quantitative Research Data: Focuses upon collecting data for numerical analysis.
Research Report: The research report is the compilation of the findings of the research – they normally come in the form of word or PowerPoint document.
RSS: Royal Statistical Society (a market research society).
WAPOR: World Association of Public Opinion Research (a market research association).
Word Association: A technique in which the respondent is confronted with a word and is asked to respond with the word that immediately comes to mind.
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