BOX 5-3

Industry Definitions


A set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit an organization and its stakeholders. Marketing encompasses a wide range of activities including conducting market research; analyzing the competition; positioning a new product; pricing products and services; and promoting products and services through advertising, consumer promotion, trade promotion, public relations, and sales. All of these activities are integral tools used by companies in the marketplace that can be potentially directed toward healthier products, diets, and lifestyles.


Advertising represents the paid public presentation and promotion of ideas, goods, or services by a company or sponsor and is intended to bring a product to the attention of consumers through various media channels. It is often the most recognizable form of marketing.

Consumer Promotion

Consumer promotion is a marketing activity distinct from advertising. It is also referred to as “sales promotion” and represents companies’ promotional efforts that have an immediate impact on sales. Examples of consumer or sales promotion include coupons, discounts and sales, contests, point-of-purchase displays, rebates, gifts, incentives, and product placement.

Trade Promotion

Trade promotion is a type of marketing that targets intermediary industry stakeholders such as supermarkets, grocery stores, convenience stores, and other food retail outlets. Examples of trade promotion strategies include in-store displays, agreements with retailers to provide specific shelf space and product positioning, free merchandise, and sales contests to encourage food wholesalers or retailers to sell more of a specific company’s branded products or product lines.

Public Relations

Public relations are a company’s communications and relationships with various groups including customers, employees, suppliers, stockholders, government, and the public.

Proprietary Data

Proprietary data consist of information obtained from private companies or firms that hold the exclusive rights to distribute those data, which are often collected for specific commercial purposes intended for a targeted audience. They may be available to customers who can purchase the data, and are usually not widely available to the public due to the expense.

SOURCES: AMA (2005); Boone and Kurtz (1998); IOM (2006).

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