Cash Cows A term used in the Boston Group Matrix. Cash cows are low-growth businesses or products with a relatively high market share. These are mature, successful businesses with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars.
Channel conflict Disagreement among members of a distribution channel about who should be paid what and what roles each should play. Channel conflict often occurs when a business uses a multi-channel approach to distribution
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
Consumer buyers Consumer buyers are those who purchase items for their personal consumption
Consumer durables Consumer durables have low volume but high unit value. Consumer durables are often further divided into White goods (e.g. fridge-freezers; cookers; dishwashers; microwaves) and Brown goods (e.g. DVD players; games consoles; personal computers)
Consumer markets Consumer markets are the markets for products and services bought by individuals for their own or family use
Continuous market research Continuous research involves interviewing the same sample of people, repeatedly
Contribution Contribution per unit can be defined as selling price less variable costs. Overall contribution is the difference between total sales revenues and variable costs
Core product The set of problem-solving or need-meeting benefits that customers are buying when they purchase a product. Customers are rarely prepared to pay a premium for these elements of a product.
Cost leadership A strategy of producing goods at a lower cost than the competition. This usually requires the business to enjoy higher economies of scale or have some kind of productivity advantage
Cross-selling Using a customer’s buying history to select them for related offers, e.g. a car alarm for new car buyers.
Customer demand Consumer demand is a want for a specific product supported by an ability and willingness to pay for it.
Customer loyalty Feelings or attitudes that incline a customer either to return to a company, shop or outlet to purchase there again, or else to re-purchase a particular product, service or brand.
Customer need A need is a basic requirement that an individual wishes to satisfy.
Customer satisfaction The provision of goods or services which fulfil the customer’s expectations in terms of quality and service, in relation to price paid
Customer wants A want is a desire for a specific product or service to satisfy the underlying need.
Demographic segmentation Demographic segmentation consists of dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality
Depth interview A lengthy, one-to-one structured interview, examining in detail a consumer's views about a product
Differentiation A marketing strategy aimed at ensuring that products and services have a unique element to allow them to stand out from the rest
Direct mail The delivery of an advertising or promotional message to customers or potential customers by mail.
Direct marketing The planned recording, analysis and tracking of customer behaviour to develop a relational marketing strategies
Direct response advertising Direct response advertising is that which incorporates a contact method such as a phone number, address and enquiry form, web site URL or e-mail address. This is done with the intention of encouraging the recipient to respond directly to the advertiser by requesting more information, placing an order etc. The use of this technique on television is commonly referred to as DRTV advertising
Distribution channel The network of organisations necessary to distribute goods or services from the manufacturers to the consumers; the distribution channel therefore potentially consists of manufacturers, distributors, wholesalers, and retailers.
Distributors Companies that buy and sell on their own account but tend to deal in the goods of only certain specified manufacturers.
Divest A strategy based on the Boston Matrix. Here the company can divest the SBU by phasing it out or selling it - in order to use the resources elsewhere (e.g. investing in the more promising "question marks").
Dogs A term used in the Boston Group Matrix. Unsurprisingly, the term "dogs" refers to businesses or products that have low relative share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in.