Marketing Lingos: Important Marketing Terms

Published by MBA Skool Team, Published on October 21, 2012

You are walking in a bustling market and suddenly a group of people gather from nowhere, do some bizarre act and then disappear back into the crowd. You have just got entertained by a flash mob.It is one of the Public relations stunt. They are used for fulfilling marketing objectives and intend to attract media attention.


The surprise and speed element in it enhances the recall value of the flash mob as well as the objective or cause behind that. The power pack is when flash mob is clubbed with the Internet which holds the power for a campaign to go viral and many movies makers, social groupstake advantage of this approach to enhance awareness of their movies or social causes respectively.

You get out of your hibernation and log in to Facebook after ages; suddenly you see madness among your friends about a video named Kolaveri di. You too get strong urges to see it and you not being a connoisseur of music like it and update it as your Facebook status too. So this peer to peer endorsement is viral marketing. Like viruses, these messages spread through rapid multiplication.It is a marketing technique employed to enhance the brand / cause awareness through the effective use of social media as well as word-of-mouth.

Your parents get furious with you when they see you paying homage to this site for many hours every day. Your boss sees you with that arrogant pride when he catches you visiting this site and makes relentless steps to make sure that he’s not caught doing the same. Yes, I’m talking about a really great place where you can waste your precious time:Facebook. Currently, Facebook has over 900 million users all over the world. So its large customer base and the different segmentation information it has about its users attracts marketers to promote their brand and connect with their customers to improve their business.

You are awaiting the result of the most important and toughest interview of your life but the person with the same calibre as yours takes away the job. The point of difference was just that the person used influential pressure groups that supported his candidature. So in marketing context, it’s called Mega marketing. The typical marketing employs four marketing variables: product, price, placement and promotion. However, mega-marketing not only includes these four marketing variables but also external groups like Government, Media, and Pressure groups etc. So the two extra P’s are Public relations and Power. The best example is when Pepsi outwitted Coca-Cola in Indian market during 1970s and 1980sby employing not only hard work but also effective political marketing. Coca-Cola withdrew from Indian market against Government policies. Later, it tried to re-enter the market but could not do due to mega marketing used by Pepsi then.

An uncle ji, who is a close family friend, comes to your house with an instant plan of making you rich. You being a young blood and a dream to become rich in youth sets in your mind and you readily invest huge bucks in this company (Read: Speak Asia online). Later you realize that company has run away and uncle ji is nowhere to be seen. Congratulations, you have become the victim of Multi-level marketing. Unlike traditional marketing that employs millions of rupees to market their product and services, MLM is based on word-of-mouth. According to Wikipedia “It is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a down line of distributors and a hierarchy of multiple levels of compensation.”. Some companies that have been running successfully for long are RMP, Amway etc.

You are working out in a gym to reduce that bulging belly and suddenly you receive an SMS offering you to buy a slim sauna belt to reduce weight. You get conscious and wonder how they know about your weight issues. This form of marketing is called as SMS marketing. 67% of world’s population are mobile subscribers i.e. around 4.6 billion which provides ample opportunities for the marketers to project their brand. It is one of the fastest, cost effective and the most personal ways to reach out to the customers directly.

You are the owner of a Super Mart and you allow a retailer of Banphool oil to display his products on the racks in your store. You acquire the ownership of this product until it’s sold. So if it ever gets sold, you and the retailer will share the profits earned after sales. So in this case, you are the rack jobber.

“Doodh si safedi, Nirma se aaye, Rangeen kapda bhi khil khil jaye,  sabki pasand Nirma..Washing powder Nirma,, NIRMA!! “.You still sing it for fun? Nothing wrong in you! This advertisement was a success and this catchy song is a fondly remembered Jingle.Jingle is a short and catchy song which specifically mentions the product that is being promoted. It is frequently used in TV and radio commercials. It is one of the most important brand elements which not only has a long lasting impact on the viewers but also helps it create its own unique identity in the market.

You are asked in your very important summer internship interview about something unique that is not present in others. And you reply that you can fluently sing a song backwards. That is the only thing you have to say? Anyways I’m not sure whether you could get internship on that but you at least could get an opportunity for some air time at Indian Idol. So this unique characteristic makes you stand out of the masses, drives your business and sales is called unique selling proposition. Example: Google’s USP lies in providing the exact information that we search for in a little amount of time.

You like tossing cigarette in air? You like to cover your face with your hand? And do you claim these as your original style? Hope you dare not! These are the trademarks of Rajnikant and Manoj Kumar respectively! According to Wikipedia “ Trademark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify for consumers that the products or services on or with which the trademark appears originate from a unique source, designated for a specific market, and to distinguish its products or services from those of other entities.It is typically a name, word, phrase, logo, symbol, design, image, or a combination of these elements.”

This article has been authored by Ilicia Chauhan from IIFT Kolkata.

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