Marketing Glossary

 | May 26,2010 05:18 pm IST

AANA - abbrev. Australian Association of National Advertisers

 

AARDS - abbrev.

Australian Advertising Rate and Data Service.

 

ABC Account Classification - the classification of customer accounts within a sales territory or region into groups according to their size and potential, and, therefore, their importance; the classification is used primarily to determine call frequency.

 

ABC Inventory Analysis - the classification of goods held in inventory according to sales volume; the classification is used primarily to determine stock location within the warehouse.

 

Above-the-Line Advertising - advertising which employs one of five main media - the press, television, radio, cinema and posters. See Below-the-Line Advertising.

 

ABS - abbrev. Australian Bureau of Statistics.

 

Absolute Cost Advantage - the cost advantage one company has over another if it has a cheaper source of raw materials, control of superior knowledge through patents, cheaper manufacturing or assembly costs, or similar benefit.

 

Absolute Costs - the minimum costs that an organisation must bear to remain in business. See Absolute Cost Advantage.

 

Absolute Product Failure - a new product introduction which does not manage to recover its production and marketing costs; the company incurs a financial loss.

 

Accelerated Test Marketing - market testing of consumer goods using a simulated store technique rather than an actual test market; also referred to as Laboratory Test Markets and Purchase Laboratories.

 

Accelerator Principle - the notion that an increase or reduction in consumer demand will affect several layers of demand in organisational markets; for example, an increase in consumer demand for soft drinks will will lead to an increased demand by retailers for soft drinks, an increased demand by soft drink bottlers for aluminium cans, an increased demand by aluminium can manufacturers for aluminium sheet, an increased demand by aluminium sheet manufacturers for aluminium ore, and so on. See Derived Demand.

 

Acceptable Price Range - an expectation in the minds of consumers regarding price levels for a product category; consumers are reluctant to buy below the acceptable price range for fear that the product will be inferior, or above it because the expected benefit of the product is not worth the price.

 

Access Barriers - factors such as tariffs and legal restrictions which reduce the size of a market by preventing potential customers from purchasing a particular product.

 

Accessibility - one of the four major requirements (with actionability, measurability and substantiality) for useful market segmentation; accessibility expresses the notion that the segment targeted must be able to be reached and served adequately by the firm's promotion and distribution system. See Actionability; Measurability; Substantiality.

 

Accessory Equipment - goods and materials purchased by organisations for use in production, administrative, clerical or marketing activities, but not directly in the manufacture of finished products.

 

Account Executive - see Account Manager.

 

Account Manager - a sales representative responsible for a major customer account or group of major accounts; also referred to as an account executive.

 

Account Objectives - the specific aims and sales goals to be achieved within a specified period by a salesperson for an account for which he or she is responsible.

 

Account Penetration Ratio - a measure used to evaluate salespeople; the percentage of accounts from which orders are secured is calculated to provide a measure of whether the salesperson is working the territory in a systematic way or simply "milking" major accounts.

 

Account Representative - a salesperson with direct responsibility for one specific major account or a group of major accounts.

 

Account Strategies - broad methods employed in achieving the objectives set by a salesperson for a particular account.

 

Accountants' Marketing - a term sometimes used to describe an approach to marketing characterised by an

emphasis on short-term sales results rather than on long-term survival and growth, and by a lack of innovation.

 

Acid-Test Ratio - one of three ratios commonly used to evaluate a firm's liquidity; calculated by dividing cash by current liabilities. See Current Ratio; Quick Ratio.

 

Action Plan - see Action Program.

 

Action Program - a detailed plan showing how major marketing tasks will be managed and implemented, who will do them, and when; also called an Action Plan.

 

Actionability - one of the major requirements (with accessibility, measurability and substantiality) for useful market segmentation; actionability expresses the notion that the segment targeted must be of an appropriate size for the company's resources to handle. See Accessibility; Measurability; Substantiality.

 

Active Listening - listening that is more than passively hearing what the customer is saying; implies the need for a salesperson to think while listening and to evaluate what is being said.

 

.