Market researchers typically work as members of a larger team in the marketing department of a business, or with advertisers at agencies. As with most any discipline, the field of marketing and the field of advertising have their own jargon.
Market researchers who want to be effective partners must have a solid understanding of the terms used in the marketing lexicon. Lexicon is just another name for dictionary or glossary. Commonly used marketing terms essential for a market researcher's lexicon are defined below.
A marketing strategy is a plan for a course of action that involves a selection of communication methods, customer groups, distribution channels, and pricing structures. Marketing strategy refers to the combination of marketing mix and target markets.
A marketing mix is a set of controllable variables represents the core of the marketing strategy. Marketing mixes are specially configured or designed to satisfy customer needs.
The "8 Ps" of Marketing Mix
Traditionally, marketing mix is considered to have eight variables that are under the influence or control of marketers. These variables are product, price, place, promotion, packaging, programming, partnership, and people. Over the years, marketing experts have elaborated on this framework to add additional variables they consider central to a marketing mix.
Positioning occurs through the development of a product or service and a marketing mix in a manner that locates this constellation in a specific place in the minds of customers from the targeted markets. Positioning approaches generally follow one or several of six major alternatives:
- Specific features of the product or service
- Needs, benefits, or problem solutions
- Against another product or service
- Specific occasions for use of product or service
- Dissociation with a product class
The "5 Ds" of Positioning
Positioning is often considered in light of five variables, each of which conveniently begins with the letter D, as follows:
- Documenting—This consideration results in a company identifying which product or service benefits are most important to their customers and potential customers.
- Differentiation—This consideration asks a company to identify the competitors that should be the focus of the differentiation strategy, and brings about clear definitions of which variables will be used to make the company, product, or service different from what the competitors offer.
- Deciding—This consideration requires a company to determine the image they want customers and consumers to associate with their company.
- Designing—This consideration focuses on the way positioning differences will be developed and communicated.
- Delivering—This consideration explores how a company will make good on their promises, and how they will gauge whether they have delivered on those promised to consumers and customers.
This refers to a particular segment of a market that has been selected by a business for marketing attention, usually in association with a specific marketing campaign.
This is the measurable goal that a business strives to achieve for a particular target market within a specified period of time. Marketing objectives are often annual, but they may be set for longer periods of time.
The practice of identifying and grouping consumers or customers according to 1) Characteristics that they have in common, and 2) attributes that are associated with the brand, product, or service in a particular way.
Undifferentiated Marketing Strategy
This type of strategy overlooks differences that might be used for segmentation, and instead uses the same identical marketing mix for all the target markets that could be identified, but have not been.
Segmented Marketing Strategies
This marketing approach identifies the differences among various target markets and recognizes these differences by using individualized marketing mixes for each target market selected. These differentiated marketing strategies fall into three main alternative marketing categories:
- Single target marketing strategy
- Concentrated marketing strategy
- Full Coverage marketing strategy
Market research terms are associated with a number of related disciplines. Gaining facility with these terms is an important part of being a professional market researcher.