Marketing Terms

All A B C D E F G H I J K L M O P Q R S T U V W X Y Z
TermDefinition
Label

Information imprinted on Final Customer Packaging and Distribution Packaging that serves many functions such as promotion, offering product details and product purchase information (e.g., contains Universal Product Code).

Laggards

The fifth category within the Diffusion of Innovation consisting of a sizeable though not large percentage of a market who are primarily characterized as being reluctant to accept new products and may only do so if they have no other choice.

Late Majority

The fourth category within the Diffusion of Innovation consisting of up to one-third of the overall market who are primarily characterized as preferring to take a wait-and-see approach before trying something new.

Lifestyle

A component of the internal influences on consumer buying behavior that represents what a person values out of life by the activities they engage in and the interests they express.

Loss Leaders

A form of promotional price adjustment, primarily used by retailers to increase customer traffic, that intentionally prices select products at or below the cost the retailer pays to purchase the product from suppliers.

Loyalty Programs

A form of sales promotion, used in both consumer and business markets, that offers customers rewards, such as price discounts and free products, based on purchase frequency or other activity.

Major New Purchase Decision

Type of consumer purchase decision considered to be the most difficult since these are important to the consumer but the consumer has little or no previous experience making these decisions.

Major Re-Purchase Decision

Type of consumer purchase decision that is important to the consumer but the consumer feels confident making these decisions since they have previous experience purchasing the product.

Markdowns

A form of promotional price adjustment that offers a product at a price considered to be lower than the normal selling price such as temporary sale pricing and lower pricing intended to remove extra inventory.

Market

From a marketers perspective, consists of all people and/or organizations possessing the necessary qualification for making a purchase or otherwise developing a relationship with the marketer.

Market Pricing

A process for setting the initial price for a product that relies on analysis of market research to determine what customers perceive as an acceptable price and includes such methods as Backward Pricing, Psychological Pricing and Price Lining.

Market Research Distributors

Companies that function as intermediaries in the research market by acquiring access to information, such as research reports, from producers of the research (e.g., market research companies) and then selling this information to those seeking research (e.g., marketer developing a new product).

Market Segment

A smaller part of a larger market consisting of customers grouped (i.e., segmented) by characteristic shared by others in their group.

Market Segmentation

A key element of a target marketing strategy in which large markets, where customers possess different characteristics, is divided into smaller market segments in which customers are grouped by characteristic shared by others in the segment.

Market Segmentation Variables

Represent characteristics of a market that allow marketers to create customer grouping (i.e., market segments) and range from broad characteristics, such as demographics, to individually specific characteristics, such as personal product usage.