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Fundamental Marketing Terms

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Marketing

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The act of promoting and selling products or services, including market research and advertising.

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Market Segmentation

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The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.

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Marketing Mix

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A combination of factors that can be controlled by a company to influence consumers to purchase its products: Product, Price, Place, Promotion (4Ps).

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SWOT Analysis

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A strategic planning tool that identifies Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

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Unique Selling Proposition (USP)

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The factor presented by a seller as the reason that one product or service is different from and better than that of the competition.

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Brand Equity

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The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent.

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Target Market

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A particular group of consumers at which a product or service is aimed.

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Product Life Cycle

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The cycle through which every product goes through from introduction to withdrawal or eventual demise.

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Consumer Behavior

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The study of how individual customers, groups or organizations select, buy, use, and dispose of ideas, goods, and services to satisfy their needs and desires.

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Marketing Strategy

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A business's overall game plan for reaching people and turning them into customers of the product or service that the business provides.

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Cost-Per-Click (CPC)

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The amount paid by an advertiser to search engines and other Internet publishers for a single click on their advertisement, which directs one visitor to the advertiser's website.

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Return on Investment (ROI)

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A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

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Content Marketing

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A strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly-defined audience.

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B2B (Business to Business)

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A form of transaction between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer.

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B2C (Business to Consumer)

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The process of selling products and services directly between a business and consumers who are the end-users of its products or services.

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Conversion Rate

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The percentage of visitors who take a desired action, which can include filling out a form, becoming customers, or otherwise.

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Customer Relationship Management (CRM)

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A technology for managing all your company’s relationships and interactions with customers and potential customers.

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Marketing Automation

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The technology that manages marketing processes and multifunctional campaigns, across multiple channels, automatically.

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Inbound Marketing

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A marketing strategy that focuses on attracting customers through content and interactions that are relevant and helpful, not interruptive.

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Outbound Marketing

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Includes any marketing that reaches out to initiate conversations with potential customers rather than having customers come to them (i.e., traditional advertising).

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Pay-Per-Click (PPC)

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A model of internet marketing in which advertisers pay a fee each time one of their ads is clicked.

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Search Engine Optimization (SEO)

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The practice of increasing the quantity and quality of traffic to your website through organic search engine results.

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Social Media Marketing

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The use of social media platforms to connect with your audience to build your brand, increase sales, and drive website traffic.

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Affiliate Marketing

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A performance-based marketing arrangement by which an online retailer pays commission to an external website for traffic or sales generated from its referrals.

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Brand Awareness

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The degree of consumer recognition of a product by its name or design.

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Customer Lifetime Value (CLV)

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A prediction of the net profit attributed to the entire future relationship with a customer.

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Direct Marketing

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A form of advertising in which companies provide physical marketing materials to consumers to communicate information about a product or service.

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Market Penetration

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The percentage of a target market that consumes a product or service. Market penetration can also refer to the number of sales or adoption of a product or service compared to the total theoretical market.

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Marketing Analytics

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The practice of measuring, managing and analyzing marketing performance to maximize its effectiveness and optimize return on investment (ROI).

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Permission Marketing

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A non-traditional marketing technique that advertises goods and services when advance consent is given.

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Positioning

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The place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors.

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Public Relations (PR)

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The professional maintenance of a favorable public image by a company, other organization, or famous person.

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Sales Funnel

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The buying process that companies lead customers through when purchasing products. A sales funnel is divided into several steps, which differ depending on the particular sales model.

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Sponsorship

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A form of marketing in which a company pays for the right to be associated with a particular event, team, athlete, or organization.

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Viral Marketing

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A business strategy that uses existing social networks to promote a product. Its name refers to how consumers spread information about a product with other people, much in the same way that a virus spreads from one person to another.

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Word of Mouth (WOM)

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The process of actively influencing and encouraging organic word of mouth discussion about a brand, organization, resource, or event.

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Customer Acquisition Cost (CAC)

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The cost associated in convincing a customer to buy a product/service. This cost is incurred by the organization to convince a potential customer.

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Demand Generation

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The focus of targeted marketing programs to drive awareness and interest in a company's products and/or services.

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Engagement Rate

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A metric that measures the level of engagement that a piece of created content is receiving from an audience. It shows how much people interact with the content.

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Influencer Marketing

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A form of marketing involving endorsements and product placement from influencers, people and organizations who have a purported expert level of knowledge or social influence in their field.

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Marketing Channel

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The mediums through which a company communicates with or delivers its products or services to the end-user.

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Native Advertising

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A type of advertising, usually online but feasibly elsewhere, that matches the form and function of the platform upon which it appears.

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Online Reputation Management (ORM)

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The practice of crafting strategies that shape or influence the public perception of an organization, individual or other entity on the Internet.

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Price Elasticity

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A measure of the responsiveness of the quantity demanded or supplied of a product in relation to its price change.

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