Macmillan Dictionary of Marketing and Advertising

AA. See ADVERTISING Association.

Backer & Spielvogel. New York advertising agency, estimated by Advertising Age to have had gross income of $45 million in 1983 on billings of $300 million. The agency has 514 employees in one office.

CAC (cognitive–affective–conative). One of two basic attitude models. See ATTITUDE. (MJB)

DADA. See DESIGNHRS’ & ART DIRECTORS’ ASSOCIATION.

early adopters. See ADOPTER CATEGORIES.

factor analysis. A group of methods of multivariate analysis used to examine the inter-relationships of a set of measured data, typically a number of ATTITUDE SCALES applied to a number of people. The technique seeks by one of a number of factor methods employing various criteria to deduce the existence of certain underlying factors which contribute to the scores achieved by individuals for the various scales according to the strength for the individual of these factors. The method has been attacked on the grounds that the results are arbitrary, since they are determined by a series of arbitrary decisions on methods, and that a better understanding of the data may be obtained by an examination of the correlations between scores for the various scales. Such an examination should certainly precede factor analysis. (JAB)

habit. A consistent pattern of behaviour that is performed without considered thought. Many purchasing situations are habitual and the consumers will not change their behaviour without a major stimulus to do so. (KF)

IBA. See INDEPENDENT BROADCASTING AUTHORITY.

JICNARS. See JOINT INDUSTRY COMMITTEE FOR NATIONAL READERSHIP SURVEYS.

labour. One of the three basic factors of production — the others being land and capital. It comprises all persons within an economy available to participate in the production of goods and services. (MJB)

national brand. A brand available nationally as distinct from a regional or test-market brand. (JRB)

objective and task method. A conceptually sound procedure for determining the size of the ADVERTISING APPROPRIATION which is relatively little used in practice. It reverses the basis of the commoner methods (described in the main entry) by first establishing clear advertising objectives and then determining how much it will cost to attain them. There are two practical drawbacks: first, advertisers find it surprisingly hard to articulate bona fide advertising objectives; second, it may be more easily said than done to cost the means of achieving them.

P’s of marketing mix. An alliteration created to encapsulate the basic activities of the marketing discipline, the ‘four P’s’ are: product, price, promotion and place. (JRB)

qualitative research. Collection of data. usually by semistructured or unstructured method from small samples in discursive verbal form. Analysis is by subjective summary, again in discursive form. Often group discussions are used. Although this technique lacks the apparent essential of statistical reproducibility and is dependent on the collector and the analyser of the data, nevertheless it is widely used, not only on account of the relative speed and cheapness of data collection but also because of the relationships between all the variables which may be revealed. (JAB)

R&D. See RESEARCH AND DEVELOPMENT.

s-shaped sales response function. Graphical representation of the relationship between sales and the level of marketing expenditure. Usually shown as an ‘s’ shaped curve since the sales return from initial levels of marketing expenditure is likely to be low. As marketing expenditures increase so sales are likely to increase at a higher rate until market saturation, when sales are likely to increase at a slower rate than increases in marketing expenditure. (STP)

T-scope. See LABORATORY TESTS OF ADVERTISING EFFECT.

undifferentiated marketing strategy. One of three basic marketing strategies (the other two being DIFFERENTIATED and CONCENTRATED). An undifferentiated strategy exists when the supplier offers the same or undifferentiated product to all persons or organizations believed to have a demand for a product of that type. Three sets of circumstances suggest themselves as being suited to an undifferentiated strategy: (a) the introduction of an innovation; (b) the mature/decay stage of the product life cycle; (c) commodity marketing where the conditions most closely approximate the economist’s model of perfect competition. When introducing a new product into the marketplace, especially a radically different product, several factors may predicate an undifferentiated strategy. For example it is widely recognized that much of the risk attendant upon a new product launch is uncertainty as to the scope and nature of demand, which may result in a perceptual mismatch between supplier and potential user. Inertia and commitment to the known and safe product or process, make it very difficult to forecast just what interpretation prospective users will make of the benefits offered by the innovation. Under such circumstances, a broad approach may be preferable to an attempt to pre-identify receptive customers as a basis for market segmentation and the development of either differentiated or concentrated strategies. Similarly, by the time that the product is moving into its decline it is safe to assume that the users/consumers are strongly committed to the product and so there is little need for special marketing effort. In the third case, the essential homogeneity of the commodity militates against either a differentiated or concentrated strategy. (MIB)

validity. The extent to which the measurement process devised to measure marketing phenomena is free from systematic errors. In testing the validity of a measurement instrument the researcher might use any or all of the following: (a) content validity; (b) criterion validity; (c) construct validity. (G.A)

wants. See NEED.

Young & Rubicam. Third largest advertising agency in the USA (following the INTERPUBLIC GROUP and the JWT GROUP), with reported gross income of $413 million in 1983 on billings of $2761 million. The agency has 7745 employees in 155 offices, including 4424 in 41 US offices.

Young & Rubicam. Third largest advertising agency in the USA (following the INTERPUBLIC GROUP and the JWT GROUP), with reported gross income of $413 million in 1983 on billings of $2761 million. The agency has 7745 employees in 155 offices, including 4424 in 41 US offices.