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Glossary absolute advantage (economics) The advantage of a company, economy or other economic unit over another in the cost of producing goods using the least resources (physical and human). a d o p t e r A consumer who is willing to purchase a product. Adopters range in grade from innovators to laggards. a d v e r t i s i n g A form of public notice that seeks to inform, persuade and otherwise modify consumer attitudes toward a product, with the objective of triggering an eventual purchase. a d v e r t i s i n g a g e n c y An organization that specializes in the research, design, creation, and management of advertising for a company. They may supply creative services as well as media buying, ad distribution, logo design and information on brand building. a d v e r t i s i n g c a m p a i g n A planned set of advertising messages repeated in a variety of media. The goal of an advertising campaign is to inform consumers about new products or innovations to old ones, improve the image of a product or a company, and trigger actual purchases of products or services. a g e n t s Members of the distribution chain that represents a company’s products without ever taking actual possession. An agent’s role is to establish contact between buyers and sellers for a fee. Some nation’s require that agents be native to the marketplace. a . k . a . An acronym that stands for “also known as.” a r t i f i c i a l d e m a n d The creation of consumer demand through the promotion of goods or services for which the marketplace has not expressed a previous interest. See p r o d u c t d r i v e n
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a t o m i z a t i o n The marketing strategy that treats each individual as a separate segment. Disorganized attempts at atomization can result in s p l i n t e r i n g . a v e r a g e r e t u r n p r i c i n g A technique for pricing products that uses the average amount that a company expects to profit above product costs for its entire line as the percentile to markup new products. An unreliable pricing method as it doesn’t account for questions of p e r c e i v e d v a l u e or c o m p e t i t i o n . b a r t e r A trade system whereby goods are exchanged for other goods and services, rather than for money. It’s the oldest form of commerce. See c o u n t e r t r a d e . bill of exchange (a.k.a. draft) An unconditional order by which one party instructs another party to pay a specified amount to a third party. It’s often used in foreign transactions as a means of financing. b r a n d e q u i t y The value a company derives from the fact that their product name is recognized and well-thought-of in the marketplace. b r a n d e x t e n s i o n The introduction of a new product or service by associating it in promotion with an already existing and well-established brand name. b r a n d n a m e A name, symbol, logo, design or combination thereof which is recognized in the consumer’s mind beyond the product itself. b r a n d r e p e t i t i o n An advertising technique designed to trigger a purchase by the constant repetition of the brand name to consumers, either visually or orally, until it’s firmly implanted. b r e a k - e v e n p r i c i n g A pricing methodology whereby the sale price of a product covers all costs of manufacture, but with no profit. Break-even pricing is often used
