Term Concept

1. Aspects of Sales and Marketing The Aspects of Sales and Marketing are based on the six most
common and often distinct career fields related to Sales and Marketing. They are Marketing Strategy
(MS), Marketing Research (MR), Digital Marketing (DM), Corporate Sales (CS), Branding and Advertising,
and Retail Marketing (RM).

2. Auctions Auction is a publicly held sale at which property or goods are sold to the highest
bidder(buyer) or prospective sellers compete to offer the lowest price

3. Barter System More than a thousand years ago, when coins and other forms of money were
not yet popular, the typical and most common way people procured their products or services was
through the barter system—the direct exchange of goods or services without the use of money.

4. Business Unit Strategy The Corporate Marketing Strategy, which is a component of the overall
Corporate Strategy, is further divided into various Business Unit or Geographic Strategies, which in turn
is further divided into particular Product or Brand Strategies for each product or brand.

5. Conventional Mass Media Marketing Unlike a seller’s marketplace where sellers have the advantage
over customers, mass media marketing features multiple manufacturers, thus shifting the balance of
power in favor of consumers. Primary channels used for mass media marketing are print advertising
(newspaper, magazine, insert, or run of paper), mass mailers, television (network, cable, or syndicated),
and radio (national, local, satellite, or podcast, and out of home advertising (billboards, street furniture
e.g bus shelters, transit, alternative e.g. stadiums).

6. Corporate Finance Strategy This defines how a company will manage its finances, attain funding,
and financially sustain its operations. The Finance Strategy should include forecasts and projections and
summarize costs, income, and investments.

7. Corporate Human Resource Strategy This maps the human resource capabilities within the company
and considers talent management and acquisition needs to sustain growth.

8. Corporate Marketing Strategy This defines how a company will position, target, market, and
sells the planned products. It also defines the metrics, targets, and budgets for all marketing activities.

9. Corporate Operations Strategy This defines how a company will manage its operational
activities, manufacture its products (or provide services), and provide the corresponding customer
support and warranty.

10. Corporate Product Strategy This defines the products or services a company may want to offer, and
the research and development efforts required to create them.

11. Corporate Strategy This defines the overall direction of the company that takes into consideration
an assessment of the existing capabilities of the company and external opportunities and threats.

12. Distribution Strategy The Distribution Strategy for a product or service identifies the key
areas involved in delivering the product or service to customers.
13. Essential Marketing Aspects Marketing Strategy and Marketing Research are referred to as Essential
Marketing Aspects. Both of these Aspects are mandatory and should be used to define, measure, and
provide direction for the overall marketing efforts of a company.

14. Fragmented New-Age Marketing In recent times, the media has become increasingly fragmented
with several hundred television and radio channels, as well as a large variety of print media, including
newspapers, magazines, and trade publications. Moreover, since the late 1990s, with the increasing
popularity of the internet and, more recently, smartphones, many options now exist for advertisers to
reach a global audience using digital media marketing methods such as mobile phone apps, Google,
Facebook, Twitter, LinkedIn, YouTube, gamification, and proximity marketing (e.g., Foursquare). With all
of these options, many marketers find it beneficial to use an integrated approach to marketing by
leveraging the strengths of various types of media.

15. Geographic StrategyThe Corporate Marketing Strategy (which is a component of the overall
Corporate Strategy) is further divided into Business Unit or Geographic Strategy, which in turn is further
divided into Product or Brand Strategy for each product or brand.

16. Levels of Sales and Marketing Strategy The Corporate Marketing Strategy, which is a
component of the overall Corporate Strategy, is further divided into various Business Unit or Geographic
Strategies, which in turn is further divided into particular Product or Brand Strategies for each product
or brand.

17. Market Opportunity Analysis Concepts related to analyzing the external environment and
evaluating the internal capabilities of a company

18. Market Segments A market segment refers to a subset of consumers, businesses, or countries who
have common needs and priorities. It is a Marketing Strategy to divide the entire market in variuos
segments based on different criteria

19. Online Marketplaces Net Promoter Score is a metric used to measure customer loyalty that
was developed by Fred Reichheld of Bain & Company in association with Satmetrix in 2003. It is
measured by asking customers how likely they are to recommend a company’s product to a friend,
relative, or colleague.

20. Online Networking The internet has made the world a smaller place. People can now have access to
their networks at all times. These changes have significantly impacted the way in which people
communicate with each other and, in turn, have created new possibilities for innovative business
models.

21. Pricing Strategy The Pricing Strategy for an organization should be oriented towards creating a
sustainable brand perception and sustainable profitability for the brand while growing and maintaining a
healthy market share. It typically includes the following information: • the recommended pricing for
products or services over a period of time in different target market segments and a rationale for the
price point • an indication of how the Pricing Strategy aligns with the products’ positioning statement
and the company’s overall Corporate Strategy • the number of units that must be sold to break even,
the projected units the company anticipates it will sell, and the expected profitability of the product •
the strategy to deal with possible changes in the environment, such as changes in prices offered by
competitors and increases in production costs • the strategy for any discounts, special offers, or rebates,
and the costs associated with these • the Total Cost of Ownership, including cost of warranties and
after-purchase servicing

22. Process-Oriented Approach The SMstudy® Guide explains Sales and Marketing concepts through a
practical, process-oriented approach. This helps Sales and Marketing professionals understand the
specific processes they should follow to be effective in their Sales and Marketing roles. Each process has
associated inputs, tools, and outputs that are recommended for use.

23. Product or Brand Marketing Strategy Each Product or Brand Marketing Strategy (also referred
to as ‘Marketing Strategy’ in this book) defines Sales and Marketing objectives for each product or
brand, which then drive specific tactics involving other Marketing Aspects (i.e., Marketing Research,
Digital Marketing, Corporate Sales, Branding and Advertising, and Retail Sales).

24. Seller’s MarketplaceThe Industrial Revolution in the eighteenth and nineteenth centuries marked a
shift to mass production in factories (e.g., textile manufacturing). During this time, transportation
infrastructure improved significantly with inventions such as the steam engine and more efficient ships.
The banking system was further developed and the exchange of money became easier. Communication
was also substantially improved through the development of the postal system and the use of
telegraphs. Furthermore, goods were produced more efficiently and economically in factories and could
be sold to a wider market. This created the seller’s marketplace. The main objective of the seller’s
marketplace is to establish a supply chain to procure products, and then establish a distribution channel
to sell the products to a wide variety of customers, often referred to as “mass marketing.” Emphasis on
branding and advertising is minimal in a seller’s marketplace

25. Senior Management Direction and Insights This is provided by senior management based on their
experience and insights related to the business.

26. Target Segment Once a company has identified all market segments, explored the competition,
and then compiled the details of competitive products, it should then analyze the various segments and
the strengths, weaknesses, opportunities, and threats faced by the company in order to identify the
target segments in which the business would be most competitive. This process involves identifying the
type of customers a company plans to target and the product categories under which it intends to
create products.

27. Traditional Marketplace Traditional marketplaces are usually small markets where price
negotiations and other decisions related to sales are made quickly—often by one or two persons.++++

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