Read here the important Marketing terms which we have jotted down keeping in mind their importance for the upcoming IBPS PO Exam scheduled to be conducted on 17 June 2012.
Above the line: "Above the Line" is the term commonly used for advertising for which a payment is made and for which commission is paid to the advertising agency. Methods of above the line advertising include television and radio, magazines, newspapers and Internet.
Ad hoc market research: Ad-hoc research focuses on specific marketing problems. It involves the collection of data at one point in time from one sample of respondents.
Added value: Added value refers to the increase in worth of a product or service as a result of a particular activity. In the context of marketing, the added value is provided by features and benefits over and above those representing the "core product".
Ad-Valorem Duties: These are the duties determined as a certain percentage of prices of the product.
AIDA: Attention Interest Desire Action
AIFI: All India Financial Institution
ALCO: Asset-Liability Management Committee
ALM: Asset/ liability management involves a set of techniques to create value and manage risks in a bank.
Ambush marketing: A deliberate attempt by a business or brand to associate itself with an event (often a sporting event) in order to gain some of the benefits associated with being an official sponsor without incurring the costs of sponsorship
AMC: Asset Management Committee
Annual Financial Statement: It is a statement of receipts and expenditure of states for the financial year, presented to Parliament by the government. It is divided into three parts: Consolidated Fund, Contingency Fund and Public Account.
Appropriation Bill: It is presented to Parliament for its approval, so that the government can withdraw from the Consolidated Fund the amounts required for meeting the expenditure charged on the Consolidated Fund. No amount can be withdrawn from the Consolidated Fund till the Appropriation Bill is voted is enacted.
Appropriation Bill: This Bill is like a green signal enabling the withdrawal of money from the Consolidated Fund to pay off expenses. These are instruments that Parliament clears after the demand for grants has been voted by the Lok Sabha.
Augmented brand: The additional customer services and benefits ("added value") that are built around the core product or service offering
Balance Of Payments: The difference between demand and supply of a country's currency in the foreign exchange market.
Balance Of Trade: The difference between monetary value of exports and imports of output in an economy over a certain period of time. It is the relationship between a nation's imports and exports.
Banking Cash Transaction Tax (BCTT): BCTT is a small tax on cash withdrawal from bank exceeding a particular amount in a single day. The basic idea is to curb the black economy and generate a record of big cash transactions. This tax was introduced in 2005-06 budget.
Behavioural Segmentation: Behavioural segmentation divides customers into groups based on the way they respond to, use or know of a product.
Bond: A negotiable instrument evidencing debt, under which the issuer promises to pay the holder its face value plus interest as agreed.
Brand building: Developing a brand's image and standing with a view to creating long term benefits for brand awareness and brand value
Brand equity: Brand equity refers to the value of a brand. Brand equity is based on the extent to which the brand has high brand loyalty, name awareness, perceived quality and strong product associations. Brand equity also includes other "intangible" assets such as patents, trademarks and channel relationships.
Brand extension: Brand extension refers to the use of a successful brand name to launch a new or modified product in a new market. Virgin is perhaps the best example of how brand extension can be applied into quite diverse and distinct markets.
Brand image: Brand image refers to the set of beliefs that customers hold about a particular brand. These are important to develop well since a negative brand image can be very difficult to shake off.
Brand loyalty: A strongly motivated and long standing decision to purchase a particular product or service
Budget estimates: It is an estimate of Fiscal Deficit and Revenue Deficit for the year. The term is associated with estimates of the Center's spending during the financial year and income received as proceeds of tax revenues
Budgetary Deficit: Such a situation arises when expenses exceed revenues. Here the entire budgetary exercise falls short of allocating enough funds to a certain area.
Business to business: Marketing activity directed from one business to another (as opposed to a consumer). This term is often shortened to "B2B"
businesses communicating with customers.
Capital Budget: Capital Budget keeps track of the government's capital receipts and payments. This accounts for market loans, borrowings from the Reserve Bank and other institutions through sale of Treasury Bills, loans acquired from foreign governments and recoveries of loans granted by the Central government to State governments and Union Territories.
Capital Budget: It consists of capital receipts and payments. It also incorporates transactions in the Public Account. It has two components: Capital Receipt and Capital Expenditure.
Capital budget: The list of planned capital expenditures prepared usually annually Capital Gain and Loss. The difference between the price that is originally paid for a security and cash proceeds at the time of maturity (face value of bond) or at the time of sale (selling price of a bond or stock). When the difference is positive, it is a gain, but when it is negative, it is a loss.
Capital Expenditure: It consists of payments for acquisition of assets like land, buildings, machinery, equipment, as also investments in shares etc, and loans and advances granted by the Central government to state and union territory governments, government companies, corporations and other parties.
Capital expenditure: Long-term in nature they are used for acquiring fixed assets such as land, building, machinery and equipment. Other items that also fall under this category include, loans and advances sanctioned by the Center to the State governments, union territories and public sector undertakings.
Capital Goods: Goods used in the manufacturing of finished products
Capital investments: Money used to purchase permanent fixed assets for a business, such as machinery, land or buildings as opposed to day-to-day operating expenses.
Capital Market: Market in which financial instruments are bought and sold.
Capital Payments: Expenses incurred on acquisition of capital assets
Capital Receipt: Capital Receipts consist of loans raised by the Center from the market, government borrowings from the RBI & other parties, sale of Treasury Bills and loans received from foreign governments. Other items that also fall under this category include recovery of loans granted by the Center to State governments & Union Territories and proceeds from the dilution of the government's stake in Public Sector Undertakings.
Capital Receipt: The main items of capital receipts are loans raised by the government from public which are called market loans, borrowings by the government from the Reserve Bank of India and other parties through sale of Treasury Bills, loans received from foreign governments and bodies and recoveries of loans granted by the Central government to state and union territory governments and other parties. It also includes proceeds from disinvestment of government equity in public enterprises.
Capital Structure: The composition of a firm's long-term financing consisting of equity, preference shares, and long-term debt.
Capital: Funds invested in a firm by the owners for use in conducting the business.
CCI: Competition Commission of India
Central Plan Outlay: It refers to the government's budgetary support to the Plan. It is the division of monetary resources among different sectors in the economy and ministries of the government.
CENVAT: This is a replacement for the earlier MODVAT scheme and is meant for reducing the cascade effect of indirect taxes on finished products. This is more extensive scheme with most goods brought under its preview
CESS: This is an additional levy on the basic tax liability. Governments resort to cess for meeting specific expenditure. For instance, both corporate and individual income is at present subject to an education cess of 2%. In the last Budget, the government had imposed another 1% cess as secondary and higher education cess on income tax to finance secondary and higher education.
Cognitive dissonance: Cognitive dissonance is an customer effect commonly observed after a major purchase whereby the customer feels uncertainty about whether the purchase should have been made. Post-purchase promotion (particularly advertising) has a role to play to reduce the incidence and effect of cognitive dissonance
Combination brand: A combination brand name brings together a family brand name and an individual brand name. The idea here is to provide some association for the product with a strong family brand name but maintaining some distinctiveness so that customers know what they are getting
Competitive advantage: A competitive advantage is a clear performance differential over the competition on factors that are important to customers
Competitor benchmarking: Competitor benchmarking compares customer satisfaction with the products, services and relationships of the business with those of key competitors
Consolidated Fund: This is one big reservoir where the government pools all its funds together. The fund includes all government revenues, loans raised and recoveries of loans granted.