Marketing Terms and Definitions

KnowThis.com offers a detailed list of marketing terms that includes definitions and links to more detail found within our Principles of Marketing Tutorials. For most terms to learn more click on the For More See link.

• Package Inserts

  Information included within a package that is used to communicate with customers after they open the product package such as instruction manuals, promotional incentives and information on other company products.
  • For More See: Packaging

• Parity Pricing

  A competitive pricing method in which initial price is set at levels that are the same as competitors' prices.
  • For More See: Competitive Pricing

• Partial-Service Research Firm

  Research companies that offer expertise addressing a specific part of the research plan, such as developing methods to collect data (e.g., design surveys), locating research participants or undertaking data analysis.
  • For More See: Primary Research

• Perception

  The internal processing of stimuli (e.g., advertisements) that shapes how a person sees themselves and the world they live in.
  • For More See: Internal: Perceptual Filter

• Perceptual Filter

  A component of the internal influences on consumer buying behavior that affects, through both conscious and subconscious processes, how a consumer perceives the world.
  • For More See: Internal: Perceptual Filter

• Peripheral Stakeholders

  Represent groups, such religious organizations, community activists, and cause supporters, that are part of a marketing organization's external forces but that may not routinely impact the marketer unless specific issues arise.
  • For More See: Influential Stakeholders

• Personal Interview

  Method of data collection, often associated with Qualitative Research, that allows researchers to talk one-on-one with a respondent thus providing the opportunity to dig deeper and find out additional details that may not be available through other methods.
  • For More See: Qualitative Research Types

• Personal Selling

  Promotional method in which one party (e.g., salesperson) uses personal contact to build relationships with another party (e.g., those involved in a purchase decision) that results in both parties obtaining value.
  • For More See: What is Personal Selling?

• Personal Selling Systems

  A direct distribution system involving a person whose main responsibility is to create and manage sales (e.g., salesperson) generally by persuading the buyer to place an order.
  • For More See: Distribution Systems - Direct

• Personality

  A component of the internal influences on consumer buying behavior that represents the perceived personal characteristics that a person consistently exhibits, especially when that person acts in the presence of others.
  • For More See: Internal: Personality and Lifestyle

• PLC - Product Life Cycle

  Used as a tool for depicting the concept that products go through several stages of “life” with each stage presenting the marketer with different challenges that must be met with different marketing approaches.
  • For More See: Planning with the Product Life Cycle

• Podcasting

  Name given to a method of delivery of audio and video programming that a user can download to a media devices, such as MP3 players or video player, thus allowing for playback on the user’s own schedule.
  • For More See: Trends - Changing Media Choices

• POP Display (also Point-of-Purchase Display)

  A form of trade sales promotion that are generally found in retail outlets and allow products to be prominently presented thereby increasing the probability the product will standout.
  • For More See: Types POP Displays and Advertising Support Programs

• Potential Customers

  Those who have yet to purchase but possess what the marketer believes are the requirements to eventually become a customer.
  • For More See: What is a Customer?

• Premiums

  A form of sales promotion, used in both consumer and business markets, in which free merchandise is given-away, though these products are generally not the actual product but have some connection to the actual product (e.g., free coffee cup imprinted with product logo).
  • For More See: Promotion Types: Samples, Free Product, Premiums

• Press Kits

  A media relations tool used as part of Public Relations that includes information such as company background, key managerial biographies and other supporting materials intended to be useful to members of the news media.
  • For More See: Media Relations

• Press Release

  A document issued by a company and intended to gain news media attention or to provide information to other company stakeholders (e.g., customers, investors).
  • For More See: Source: Company Annual Reports and Press Releases

• Prestige Pricing

  A type of psychological pricing where initial price is set based on customers' perception of a correlation between perceived price and product quality where higher priced products are perceived has being higher quality compared to a lower priced product.
  • For More See: Market Pricing: Psychological Pricing

• Price Lining

  A market pricing method for setting a product's initial price that is used when there are multiple products within a marketer's product line and customers' perception of difference is affected by the separation in prices for each item (e.g., low price, mid-price and premium price).
  • For More See: Market Pricing: Price Lining

• Pricing

  Key component of the marketer's toolkit that represents decisions on the methods and strategies needed to determine what a customer will give up in exchange for obtaining value from a marketer's product.
  • For More See: What is Price?

• Primary Package

  The outermost container that is seen and touched by the final customer and includes: first-level package, second-level package and package inserts.
  • For More See: Advantages of Brands

• Primary Research

  An approach to data collection where original data is collected for the marketer's own needs or for the needs of a specific client.
  • For More See: Primary Research

• Private Branding (also Store Branding)

  A branding strategy, often seen in the retail industry, where stores or online sellers contract with suppliers to manufacture the retailer’s own branded products.
  • For More See: Approaches to Branding

• Private Warehouse

  A type of warehouse owned and operated by channel suppliers or resellers and used as part of their distribution activities.
  • For More See: Type of Warehouses

• Product

  Key component of the marketer's toolkit that represents decisions on the solutions (e.g., goods, services or ideas) and strategies needed to satisfy the needs of a target market.
  • For More See: What is a Product?

• Product Placement

  A form of advertising that intentionally inserts products into entertainment programming (e.g. movies, TV programs, video games) such as showing product use by an actor, placing product in background or having product name mentioned.
  • For More See: Product Placement Advertising

• Product Positioning

  Relates to marketing efforts that are intended to affect customers' perception of the marketer's offerings (e.g., products, company image) when compared with how customers perceive competitors' offerings.
  • For More See: Positioning Products and Services

• Product-Oriented Advertising

  A type of advertising directed toward the promotion of a specific product to a targeted audience.
  • For More See: Product Advertising

• Promotion

  Key component of the marketer's toolkit that represents decisions on the methods (e.g., advertising, personal selling, public relations) and strategies needed to communicate with a target market.
  • For More See: What is promotion?

• Promotional Pricing (1)

  A form of sales promotion and a form of special pricing program, used in both consumer and business markets, that is designed to increase product demand by offering a short-term price reduction (i.e., sale price).
  • For More See: Promotion Types: Promotional Pricing, Trade-In

• Promotional Pricing (2)

  Changes to a company's initial product pricing that are temporary, often in the form of price reductions, and primarily intended to stimulate demand for a product and includes Markdowns, Loss Leaders, Bundle Pricing, and Dynamic Pricing.
  • For More See: Step 4: Determine Promotional Pricing

• Psychographics

  Used in marketing for market segmentation, this variable describes and groups customers by combining psychological characteristics (e.g., personality, attitude, lifestyle) with demographic characteristics (e.g., age, gender, income level).
  • For More See: Stage 3 Segmentation Variables

• Psychological Benefits

  Benefits a customer perceives to receive (e.g., status within a group, risk reduction) when using a product though these are often difficult to measure and may vary by customer.
  • For More See: Consumable Product Features

• Psychological Pricing

  A market pricing method that used to set a product's initial price by considering customers’ perceived response to a price and includes Odd-Even Pricing and Prestige Pricing.
  • For More See: Market Pricing: Psychological Pricing

• Public Relations (also Publicity, PR)

  A method of promotion that involves the use of a variety of communications channels and tools in an effort to cultivate favorable relations with key publics, particularly the news media, with the objective of gaining favorable mentions of the marketer’s company or product without direct payment to the publisher of the information.
  • For More See: What is Public Relations?

• Public Service Advertising

  A type of advertising run by not-for-profit organizations that concern issues viewed as for the “greater good” of society and, in many cases, delivered free-of-charge through media outlets.
  • For More See: Image, Advocacy and Public Service Ads

• Public Warehouse

  A type of warehouse offering storage space for lease and is often used by distribution channel members to handle short-term distribution needs.
  • For More See: Type of Warehouses

• Purchase Situation

  A component of the external influences on consumer buying behavior that represents the circumstances, such as environment, emotional state or time pressure, a person is experiencing when faced with a purchase decision.
  • For More See: External: Situation

• Push Money (also Sales Incentives)

  A form of trade sales promotion offering incentives to a channel member's sales force and customer service staff to help sell more of the marketer’s product.
  • For More See: Promotion Types: Allowances, Sales Incentives