Marketing Glossary

  Terms beginning with m
Market Penetration
  1. When talking about sales, market penetration is the percentage of customers in a particular market that buy the product/service/brand.
     
  2. When talking about the effectiveness of advertising or other promotions, market penetration is the percentage of the customers in a particular market who have been exposed to the company's messages.
Contributed by: Managerwise Staff
Market Segment
A subgroup of the total market defined by one or more characteristics. There are any number of ways to segment the market. Income, age, location, education affiliation to organizations and psychographics are just a few that apply to the consumer market. Common business market segmentation criteria include, among others, industry, company size (which may be defined by any available measure such as revenue, profit, number of employees, etc.) and job classification. Two or more characteristics can be used to define segments more precisely than a single characteristic (e.g., physicians with incomes over $300,000 living in the NYC area), however at some point the segments may become too small to target profitably.
Contributed by: MarcommWise Staff
Market Share
The percentage of the total market for a product/service category that has been captured by a particular product/service or by a company that offers multiple products/services in that category. In the latter case, the company may choose to look at share on both an individual product/service basis and on a company-wide basis.

Share can be calculated either on a unit basis (i.e., If a company sells 1 million units in a total market of 10 million units, it has a 10 percent share) or on a revenue basis (i.e., If a company sells $1 million worth of widgets in a $10 million market, it has a 10% share). Obviously, if a company is able to command a higher price for its product/service than its competitors, it would show a higher market share when calculated on a revenue basis than on a unit basis.

Market share numbers can vary greatly depending on how the market is defined. For example, a company may have a 1 percent share of the "widget" market, 15 percent of the "sports widget market", 45 percent of the "luxury sports widget market" and 85% of a particular geograpically defined luxury sports widget market.
Marketing
All business activities focused on developing, expanding and facilitating the profitable introduction and promotion of a company's products and/or services. Traditionally, this is taken to include the "4Ps" -- Product, Price, Promotion and Place.
  • "Product" refers to discovering market requirements and ensuring that those requirements are reflected in the products and/or services offered by the company.

  • "Price" is obvious -- determining and setting the most appropriate prices for the products/services.

  • "Promotion" refers to all activities involved in making potential customers aware of the company, its products and services and their benefits -- and encouraging them to buy.

  • "Place" is a little less obvious. In addition to determining the best geographic areas to sell in, it also refers to the dermination and management of the best "channels" for reaching those markets -- direct sales, distributors, resellers, etc.
Contributed by: MarcommWise Staff
Marketing Channel
The term marketing channel is often used interchangeably with “sales channel” or “distribution channel”, i.e. any individual or company used in making the subject company’s products and/or services available to its customers. More specifically, a marketing channel would be any individuals or products through which the subject company conducts its marketing efforts.
Marketing Communications
All strategies, tactics, and activities involved in getting the desired marketing messages to intended target markets, regardless of the media used.
Contributed by: MarcommWise Staff
Marketing Plan
A plan -- either standalone or a component of a larger business plan -- that defines all aspects of the marketing strategy. Areas that the plan should cover include product pricing, promotion, messaging, channel strategies and an analysis of the competitive environment.
Mass Marketing
The distribution of marketing communications through mass media that, while often offering access to audiences with some common characteristics due to a shared interest in the content of the media vehicle, do not offer the ability to communicate with a specific individual, household or organization.
Contributed by: MarcommWise Staff
Mechanical
Copy and graphics pasted onto a rigid board backing for reproduction by a printer.
Contributed by: MarcommWise Staff
Media Kit
A package of information distributed by a media outlet to sell its advertising space. The kit typically includes information about the media vehicle, advertising rates, information about the audience it can deliver, mechanical specifications for ads, closing dates, etc.
Contributed by: MarcommWise Staff
Media Plan
A plan providing clear definitions of the types media, specific media vehicles and media scheduling. The plan may be for a specific campaign or for all campaigns within a year. In addition, it may be a plan for a single product or service or for the whole company or division.
Contributed by: MarcommWise Staff
Media Release
Information written by an organization and distributed to media outlets with the hope that they will incorporate the information into their news or other services. (The term is often used interchangably with press release," however a media release implies a wider distribution -- to all media outlets -- than a press release.)
Contributed by: MarcommWise Staff
Merge/Purge
A run of a computer application that merges multiple mail or telemarketing lists, possibly reconciling different formats on different lists, and purges any duplicates that either existed erroneously on one of the lists or that were a result of the same person appearing on multiple lists.
Contributed by: MarcommWise Staff
Minority Marketing
Marketing that specifically addresses minority groups (not necessarily visible minorities) within a larger population.
Contributed by: MarcommWise Staff
Mystery Shopper
Someone who is paid by a company to pose as a regular shopper in order to be exposed to the normal shopping experience in a company's stores and report back to the company on the quality of that experience. Obviously, to form an unbiased view of the normal shopping experience, the people working in the store should not be aware of the mystery shopper's identity or purpose.

Mystery shoppers are typically employed to test the shopping experience at the sponsor's stores, but they could also be used to analyze the shopping experience at competitors' stores.
Contributed by: Managerwise Staff
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