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Marketing Terminologies

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Marketing Mix

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A blend of marketing tools that a company uses to pursue its marketing objectives in the target market, traditionally defined by the '4 Ps': Product, Price, Place, Promotion.

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Market Orientation

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A business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of customers.

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Brand Equity

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The value a brand adds to a product or service, based on consumer perceptions, experiences, and brand associations.

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B2B Marketing

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Business-to-Business Marketing, the process of selling products or services to other businesses.

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Unique Selling Proposition (USP)

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The factor or consideration 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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Market Penetration

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A measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service.

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Customer Lifetime Value (CLV)

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

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B2C Marketing

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Business-to-Consumer Marketing, the process of selling products or services directly to consumers.

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SWOT Analysis

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A framework for identifying and analyzing the internal and external factors that can have an impact on the viability of a project, product, place, or person.

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Market Segmentation

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The process of dividing a broad consumer or business market into sub-groups of consumers based on some type of shared characteristics.

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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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Affiliate Marketing

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A type of performance-based advertising in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts.

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Marketing Funnel

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A model that illustrates the theoretical customer journey from the awareness phase to the purchase phase and beyond.

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Guerrilla Marketing

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An advertising strategy that focuses on low-cost unconventional marketing tactics that yield maximum results.

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Click-Through Rate (CTR)

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The ratio of users who click on a specific link to the number of total users who view a page, email, or advertisement.

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Penetration Pricing

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A pricing strategy where the price of a product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth.

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Conversion Rate

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A metric that shows the percentage of visitors who take a desired action.

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Demographics

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Statistical data relating to the population and particular groups within it used for identifying markets.

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Lead Generation

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The process of attracting and converting strangers and prospects into someone who has indicated interest in your company's product or service.

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Elasticity of Demand

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The economic concept that describes the amount of demand for a product or service in relation to price changes.

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Integrated Marketing Communications (IMC)

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A strategic marketing process specifically designed to ensure that all messaging and communication strategies are unified across all channels and are centered around the customer.

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Inbound Marketing

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A strategy that focuses on attracting customers or leads via company-created Internet content, thereby having potential customers come to the company rather than marketers vying for their attention.

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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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Marketing Automation

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The use of software and web-based services to execute, manage, and automate marketing tasks and processes.

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Product Life Cycle (PLC)

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The course that a product’s sales and profits take over its lifetime, typically divided into four stages: Introduction, Growth, Maturity, and Decline.

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Pay-Per-Click (PPC)

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An internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher when the ad is clicked.

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4 Ps of Marketing

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A set of marketing tools used to implement a marketing strategy and attract customers; these include Product, Price, Place, and Promotion.

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Key Performance Indicator (KPI)

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A measurable value that demonstrates how effectively a company is achieving key business objectives.

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Cross-Selling

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The action or practice of selling an additional product or service to an existing customer.

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Omnichannel Marketing

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A multi-channel sales approach that provides the customer with an integrated customer experience. The customer can be shopping online from a desktop or mobile device, by telephone, or in a brick-and-mortar store and the experience will be seamless.

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Direct Marketing

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A form of advertising where organizations communicate directly to customers through a variety of media.

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ZMOT (Zero Moment of Truth)

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The moment when a consumer researches a product before the actual purchase is made.

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Skimming Pricing

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A pricing strategy whereby a firm charges a high introductory price, often coupled with heavy promotion, and later lowers the price to capture other market segments.

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Social Media Marketing

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The use of social media platforms and websites to promote a product or service.

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AIDA Model

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A marketing model that outlines the process for achieving successful marketing and sales communications; stands for Attention, Interest, Desire, and Action.

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Content Management System (CMS)

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A software application or set of related programs that are used to create and manage digital content.

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Brand Awareness

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The extent to which consumers are familiar with the distinctive qualities or image of a particular brand of goods or services.

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Public Relations (PR)

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

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Touchpoint

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Any time a potential customer or customer comes in contact with the brand--before, during, or after they purchase something from the brand.

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Yield Management

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A variable pricing strategy, based on understanding, anticipating, and influencing consumer behavior in order to maximize revenue or profits from a fixed, perishable resource.

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Outbound Marketing

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Traditional form of marketing where a company initiates the conversation and sends its message out to an audience.

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Brand Loyalty

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The tendency of some consumers to continue buying the same brand of goods rather than competing brands.

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Cost Per Acquisition (CPA)

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An online advertising pricing model where the advertiser pays for a specified acquisition - for example a sale, click, or form submit.

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Word of Mouth (WOM)

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The passing of information from person to person by oral communication, which could be as simple as telling someone the time of day.

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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 and, ultimately, to drive profitable customer action.

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Target Market

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A specific group of consumers at which a company aims its products and services.

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Net Promoter Score (NPS)

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A management tool that can be used to gauge the loyalty of a firm's customer relationships. It serves as an alternative to traditional customer satisfaction research.

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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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Value Proposition

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An innovation, service, or feature intended to make a company or product attractive to customers.

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