Macmillan Dictionary of Marketing and Advertising

225 Pages·1984·71.92 MB·English

by  Michael J. Baker (eds.)

Macmillan Dictionary of Marketing & Advertising
MAJOR CONTRIBUTORS
Michael J Baker
J A Bound
A J Brown
Keith Crosier
Margaret D Dickie
Joanne Kinsey
OTHER CONTRmUTORS
George A vlonitis
Kevin A Boyle
Douglas Brownlie
James R Bureau
W Donaldson
J L Drayton
Keith Fletcher
Douglas Leathar
James M Livingstone
Stephen T Parkinson
Michael Saren
Colin Wheeler
JMIACCJMITIILILA~
WTICC1rll@~Affi)T
(Q)IF
MARKETING
AND
ADVERTISING
EDITOR
MICHAEL}. BAKER
M
MACMILLAN PRESS
LONDON
© MichaelJ. Baker, 1984
All rights reserved. No reproduction, copy or transmission of this publication may be made
without written permission. No paragraph of this publication may be reproduced, copied or
transmitted save with written permission or in accordance with the provisions of the
Copyright Act 1956 (as amended). Any person who does any unauthorised act in relation to
this publication may be liable to criminal prosecution and civil claims for damages.
First published 1984 by
THE MACMILLAN PRESS LTD
London and Basingstoke
Associated companies in Auckland, Delhi, Dublin, Gaborone, Hamburg, Harare, Hong
Kong, Johannesburg, Kuala Lumpur, Lagos, Manzini, Melbourne, Mexico City, Nairobi,
New York, Singapore, Tokyo.
Paperback first published 1985
British Library Cataloguing in Publication Data
Baker, Michael J.
Macmillan dictionary of marketing & advertising
1. Marketing-Dictionaries
I. Title
658.8.003'21 HF5412
ISBN 978-0-333-39332-1 ISBN 978-1-349-08035-9 (eBook)
DOl 10.1007/978-1-349-08035-9
The material in the following entries is taken from
Britain 1983 (HMSO) and is reproduced by permission of the Controller
of Her Majesty's Stationery Office: Bank of England; British Standards
Institution; British Technology Group; consumer protection; design;
European Investment Bank; Lloyd's; merchant banks; population;
Stock Exchange; Trades Union Congress.
The paperback edition of this book is sold subject to the condition that it shall
not, by way of trade or otherwise, be lent, resold, hired out, or otherwise
circulated without the publisher's prior consent in any form of binding or cover
other than that in which it is published and without a similar condition including
this condition being imposed on the subsequent purchaser
Introduction
In recent years there has been an upsurge of revisions. In doing so, however, I feel it is
interest in the subject of marketing, which important to stress that this book is a general
has been paralleled by increasing reference work of reference, and that I have deliber
to terms and phrases which were formerly ately excluded some of the more technical
the preserve of the marketing specialist. At jargon - particularly that associated with
the same time, emphasis upon marketing, the media and statistical techniques used in
both as an approach to business in general, marketing research - on the grounds that it
and as a complex business function in its own is of interest to a comparatively small audi
right, has resulted in a rapid expansion of ence, and such terms can be found in
the vocabulary of the subject. This is parti specialized glossaries. Cross-references to
cularly true of some of the more specialized related entries are shown in SMALL
sub-areas such as advertising, consumer CAPITALS.
behaviour, market research etc. Taken Individual contributions to the Dictionary
together these two trends suggest that there are identified by the authors' initials, and
is a need for a suitable reference work in reflect the extensive involvement of my
which practitioners, managers in other colleagues in the Department of Marketing
fields, students, and interested lay persons at Strathclyde University, which is gratefully
can find concise but informative definitions acknowleged. Of these colleagues, pride of
of marketing terms. place must be given to my Research Assis
To meet such a need it is necessary first to tant, Margaret Dickie, for not only has she
try and define marketing itself. There is no coordinated the work, but she has been
single, universally agreed definition of personally responsible for transferring our
marketing - the entry on MARKETING in scribblings onto floppy disk, so that type can
this Dictionary indicates the diverse perspec be set directly from the 'manuscript'. In this
tives of authors who have sought to define she was nobly assisted by our secretaries,
the term - and so determining just what Mrs Ann Clark and Mrs Diana Lewin.
should be included or excluded was by no We all trust you find the Dictionary a
means a simple task. As Editor, I accept useful addition to your working library, and
responsibility for both errors of commission hope that with your advice and comments
and omission, and welcome suggestions for the second edition will be even better.
M.J. Baker
University of Strathclyde
Department of Marketing
June 1984

A
AA. See ADVERTISING AssociATION. erties a market segment must possess if it
is to deserve specific marketing attention.
AB. See sociO-ECONOMIC CLASSIFICATION. The other three conditions are that it
should be measureable, substantial and
ABC See AuDIT BuREAu oF CIRCULA unique in its response. A fifth condition
TIONS. proposed by Michael Thomas is that seg
ments should be stable in the sense that
above-the-line. The 'line' is an imaginary their behaviour may be predicted in the
boundary between those advertising media future. (MJB)
which pay COMMISSION to advertising agen
cies and those which do not, the latter being account executive. The person in the adver
'below-the-line' media. The above-the-line tising agency whose job is to act as the point
media are: newspapers, magazines, televi of contact for a single account or group of
sion, radio, posters and cinema. Directories, accounts. The more self-explanatory, but
yearbooks, matchbooks and point of sale relatively rare, term is client-service execu
materials (for example) are below the line. tive. Account executives (often called
(Kc) 'AEs') need considerable skills of coordina
tion, negotiation and diplomacy to discharge
absolute income hypothesis. One of three their task to best effect. The large London
theories which have evolved in an attempt to agencies annually recruit university gradu
explain variations in aggregate consumption ates for account-executive training; they are
functions. This theory holds that expendi generally then termed 'graduate trainees'.
ture/savings are a function of income. See (Kc)
a/so PERMANENT INCOME HYPOTHESIS and
RELATIVE INCOME HYPOTHESIS. (MJB) accounting. The concept, conventions and
procedures used to record and analyse trans
absorption costing. See FULL cosT actions between parties to the exchange of
APPROACH. (MJB) goods and services. (Mm)
accelerator. See ACCELERATOR PRINCIPLE. accumulation process. The collection of pro
ducts from many small producers, a process
accelerator principle. A principle in business common in agriculture and horticulture.
cycle theory which holds that changes in After collection, the products can be more
demand for consumer goods will give rise to efficiently graded, packed, ·or processed,
increased changes in the demand for those ready for distribution to the channels of
capital goods, i.e. investment, which are distribution, or can be marketed as a stan
required to make the consumer goods. (MJB) dard unchanging product with a guarantee of
quality. (Am)
account. An individual piece of business
given to an advertising agency by an adver ACORN. A type of socio-economic classi
tiser. One client may thus represent several fication by allocating to a locality in which a
accounts, from the agency point of view. respondent lives, one of a number of types
There is no direct connection with 'account' derived from POPULATION CENSUS DATA
in its financial sense. (Kc) about the lo~ality. See CoNSUMER LocA
TION SYSTEM, SOCIO-ECONOMIC CLASSIFICA
accessibility. One of the four basic prop- TION. 0A~
M.J. Baker (ed.), Macmillan Dictionary of Marketing and Advertising © Michael J. Baker 1984
2 acronym
acronym. A word formed from the initial thus propagating an inflationary spiral.
letters of other words, e.g. CATI = Compu However, there is significant evidence from
ter Assisted Telephone Interviewing. (Mm) several industries in which administered
prices exist that the opposite is the case i.e.,
Admap. The British advertising trade mag employers have resisted wage inflation and
azine; mainly for media planners and resear kept prices down. (Mm)
chers it takes the form of an academic
journal rather than a news magazine. (Kc) ADNET. A computer network, recently
established by a limited company with the
Admarketing Inc. Los Angeles-based adver aim of linking the separate computers of the
tising agency, estimated by Advertising Age individual lTV CONTRACTING COMPANIES.
to have had gross income of $23 million in Subscribers will gain access to a large data
1983 on billings of $146 million. The agency bank of past television advertising cam
has 244 employees in one office. paigns, especially cost and audience
information. See lTV REGION. (Kc)
administered channel system. A set of rela
tionships in ordering, supply and payment adopter categories. A classification of users
between a producer and his channel inter or buyers of an innovation according to time
mediaries which preserves the autonomy of of adoption. Everett Rogers identified five
each channel member while permitting categories within the ADOPTION CURVE
informal and enduring organizational which he described as conceptualizations
arrangements to improve efficiency and based on his own observations of the diffu
encourage loyalty. The organizational sion process. Roger's categories are defined
arrangement may be initiated by the retailer in terms of percentage groupings within the
(e.g. Marks and Spencer pic) or the normal distribution of the adoption curve as
wholesaler (pharmaceutical trade ordering follows:
systems) or the manufacturer (brewing com innovators - first 2.5% of all adopters
panies). (Am) early adopters - next 13.5% of all
adopters
administered prices. Those prices which can early majority - next 34% of all adop
be controlled or set by the seller due to the ters
existence of imperfect competition by con late majority-next 34% of all adopters
trast with market prices, which are the laggards- last 16% of all adopters
outcome of the free interplay of the forces of
supply and demand under conditions of pure
or perfect competition.
No. of
While the administration of price is widely Adopters
accepted as a desirable objective by the
entrepreneur who wishes to exercise some
control over the market, the existence of
administered prices has been the subject of
adverse criticism since the 1930s, when
research by Gardner Means into more than
700 items in the wholesale price index
showed that such prices are inflexible and do Figure 1: Adopter categories
not reflect market pressures. Thus it was
argued that an unwillingness to lower prices Research has shown that these groups of
to stimulate demand resulted in an unneces adopters have different characteristics
sary prolongation of the Depression. Simi regarding soCIAL CLASS, age, education,
larly, it has been argued that administered ATTITUDES, and other variables. Most atten
prices encourage inflation on the grounds tion has been focused on the first group of
that the type of companies which can admi adopters. The characteristics and behaviour
nister prices (usually those with a dominant of innovators are studied in order to identify
market share) do not have any incentive to the most likely early purchasers of new
resist wage inflation as they can pass the products. The desired aim is to target
additional costs directly to the consumer, marketing launch efforts more accurately
advertising 3
and efficiently towards the most receptive advert. See ADVERTISEMENT.
buyers of a new product. (Ms)
advertisement, ad. Alternative terms for the
adoption curve. A graphic representation of same thing, which scarcely requires precise
the diffusion of an innovation. The curve definition since advertisements are a very
illustrates the number of adopters who have familiar feature of contemporary life in
purchased a new product or service in each western countries. 'Ad' is generally the trade
time period from the launch date. jargon, particularly in America, but enters
the public vocabulary in the term 'small ads'.
'Advert' is the layperson's word, not much
No. of used within the business and not at all by
Adoptions American writers on advertising. 'Advertise
pertime
period 50% ment' is safest. (Kc)
advertisement manager. Alternatively,
'advertisement sales manager'. The person
in a press media organization responsible for
Time of Adoption selling advertising space to prospective
Figure 2: Adoption curve advertisers. Do not confuse with advertising
manager. In television and radio companies,
The curve takes the shape of a normal the term 'sales manager' is more common.
statistical distribution. A small number of (Kc)
people adopt the innovation shortly after it
becomes available and this rate of adoption advertisement sales representative. A mem
increases until 50 per cent of the potential ber of the advertisement manager's sales
buyers (or users) have tried it. After this team. The older term is 'space salesmen'.
point the number adopting within each time (Kc)
period falls until there are no potential
adopters who have not tried the innovation. advertiser. A person, firm or other organiza
An alternative method of illustrating the tion in the role of originator or sponsor of an
same process is by plotting the cumulative advertisement or advertising campaign.
number of adopters against time: Thus, 'Cadbury-Schweppes is a major Brit
ish advertiser'. See also CLIENT. (Kc)
Cumulative advertising. Can mean several things: the
No. of
Adoptions craft or science of creating and disseminating
per time advertisements; the business or profession
period
servicing the craft; a social institution affect
ing the daily lives of everyone; a force
shaping popular culture; a factor in the
economic theory of the firm; an element in
Time the MARKETING Mix; a source of information
Figure 3: Adoption curve (cumulative) for CONSUMERS. A narrow definition of the
process rather than the concept might be:
This produces an S-shaped curve, also the placing of recognizable ADVERTISE
known as the diffusion curve. (Ms) MENTS in definable ADVERTISING MEDIA at a
published rate for the purchase of ADVER
adoption process. See DIFFUSION PROCESS. TISING SPACE or ADVERTISING TIME.
The concept of advertising is too old for a
Adshel. Descriptive term for a standardized meaningful origin to be pinpointed, but an
poster site incorporated into the structure of institutionalized advertising business has
a bus shelter. There are 2,500 throughout existed in Britain since about 1700, when
the UK, all sold by one contractor, Adshel newspapers began to feature advertising of a
Limited. A small amount of bus-shelter kind that present-day readers would recog
advertising is available from individual sup nize as such. Today, the business is charac
pliers other than Adshel. (Kc) terized by five main organizational elements: