Marketing terms: basic concept, glossary of terms, features of application, emergence of new words, their types and meaning

2024 Author: Trinity Chesterton | [email protected]. Last modified: 2023-12-16 08:12

The world of marketing is full of acronyms and professional terms that make newbies dizzy. Even the very concept of marketing is not always clearly interpreted by a person who is little familiar with the peculiarities of the market and the scope of sales. In addition, the industry is changing very quickly, and it is difficult to keep track of these changes.

Why do I need to know the terms?

New terms in marketing come up all the time and they can confuse anyone. But knowing these concepts means you stay on top of the latest trends and are able to quickly explain them to the rest of your team. Understanding what certain terms mean in marketing and advertising will help demonstrate to your boss the mood to be a better employee. This means that career advancement will become more real.

History of Marketing

The term "marketing" itself means, when literally translated, simplymarket activity. It can also be translated as "working with the market", "mastering the market". The term "marketing" appeared at the turn of the 19th and 20th centuries. from the English word "market". It refers to the process of identifying as well as constructing customer needs and creating ads that will meet those expectations.

Network Marketing

The goal of marketing campaigns is to increase sales by satisfying customer needs. Much later, multi-level or network marketing appeared. Its difference is that buyers can sell the goods themselves by becoming distributors. The terms in network marketing are mainly related to the performance of sellers and their relationships within the company. For example, "network of distributors", "extra revenue", etc.

Different definitions of marketing

There are various definitions of the term "marketing". One of the most common is the designation of it as a set of measures to meet the emerging needs and requirements of customers. According to one version, the term "marketing" was proposed in the year 1953 by Neil Borden, who referred to the work of James Culliton. There is also an opinion that Japan has become the birthplace of marketing. This assumption was made by the American scientist Peter Drucker, describing the trade policy of Mr. Mitsui, who focused on the needs of customers in his activities, thereby ahead of his time by 250 years. Under the traditional approach, profits were to be generated at the expense of the enterprise and not at the expense ofa product or service that satisfies the needs of consumers, as in the marketing approach.

4P concept

Another, already canonical, version of the decoding of the term "marketing" was proposed by Jerry McCarthy in 1960. It included the concept of 4P (product, price, place, promotion), based on four planning coordinates. They included the product itself, its cost, the location of the outlet and promotion. Most businesses in the US, Europe and Japan are currently managed by marketing principles.

30 key concepts in marketing

Let's look at 30 key terms that are important to every marketer. They will help you better navigate the world of marketing and understand some of its basics:

1. KPIs, or Key Indicators, are measurable data points that help prove that an organization is on track to achieve its goals.
2. Analytics - repeated discoveries and interpretations of data that can help identify trends. This data can be collected using tools or manually, or found on various marketing platforms.
3. Painpoints are problems or pain that the target market is currently experiencing. The desire to satisfy them leads the customer to purchase a product or service.
4. Big data, or Big data - large data sets that must be analyzed by a computer in order to accurately determine trends.
5. В2В, or Business to business - one of the basic concepts and terms of marketing, denoting salesor sales between two enterprises. It is also called "business marketing".
6. В2С, or Business to consumer - sales or sales between a business and a client or consumer.
7. Demography - statistical characteristics of the human population, such as fertility, size, gender, profession, etc.
8. Hard Offer, or Hard Offer - a marketing message with a request to sell directly. It usually means that money is requested in advance, before the product is provided.
9. AI, or artificial intelligence - in English, this term sounds like artificial intelligence or AI. It denotes a computer system for modeling intelligent human behavior.
10. Marketing-qualified lead - Prospective customers who have expressed interest in the product and are ready to talk to the salesperson, but are not yet ready to purchase the product.
11. Conversion rate - one of the basic marketing terms, refers to the ratio of the total number of visitors to the number of customers who completed the required action. It doesn't necessarily mean they bought something. The conversion action can be different and depends on the business objectives.
12. Churn Rate, or Churn Rate - the rate at which customers abandon a subscription or service.
13. Cross-channel marketing is a marketing strategy that promotes the same message across multiple media such as a website, press or TV ad.
14. Marketing funnel is one of the basic terms of marketing, which denotes the path alongwhich potential customers go through before purchasing a product or performing another conversion action. Contains the steps to convince the client to make a deal with this organization.
15. The marketing trend is a popular strategy or tactic used by marketers in various industries.
16. Machine learning is a part of artificial intelligence methods, in which it solves problems not directly, but by learning in the process.
17. Market niche is one of the basic marketing terms. Denotes a specific industry department in which a company or product has a strong position.
18. Omnichannel is a marketing term that means a marketing approach that covers several communication channels and combines them into a single system. It is the basis of customer service and ensures continuous communication with customers.
19. Customer Insight - Observing target customer behavior patterns for marketers to use to create more compelling messages.
20. Buyer Persona is a marketing term that refers to a summary of data, including demographics, hobbies, interests, and other factors, to determine who is most likely to buy a product or service.
21. The customer journey is the process by which a potential customer makes a decision to purchase a product. It includes all possible ways in which a customer can interact with an organization.
22. Return on investment (this marketing term in English sounds like ROI) - the ratio of profit from investment to quantityinvestments. To correctly calculate this indicator, you need to know the cost of the product, the income received and the amount of investment invested in the marketing campaign.
23. Market segment - groups into which the target audience is divided. They are based on similar characteristics or behaviors.
24. Average revenue per user, or ARPU (this marketing term in English sounds like Average revenue per user) - the company's average revenue per unit of production. The formula for calculating this indicator is: ARPU=total revenue / number of customers.
25. Strategy is a comprehensive plan in which the organization describes the goals and plans to achieve them.
26. Tactics are marketing efforts that are used to achieve goals. These are specific and detailed ways to achieve the goals that were set out in the strategy.
27. Corporate identity, or Corporate identity - a marketing term that refers to the features and traits that define the brand as something separate and unified. Includes visual design, communication tools and various elements that help the audience identify the brand and emphasize the identity of the company.
28. Target Audience - The group of people an organization is targeting because the marketing team has determined they are most likely to purchase a product or service.
29. The goal of marketing is the main goal of the business, qualitative and quantitative indicators, the fulfillment of which at certain intervals sets the content of the marketing campaign.
30. Life cycle stages are one of the mainconcepts and terms of marketing, denoting the stages that the target audience goes through in the process of research, purchase and after the purchase of a product.

Required terms for working with social media

Concepts and terms in marketing, necessary for understanding the work in social media, also constantly appear and disappear, replacing each other. The following are the words most commonly used by marketers in this space:

1. The internal sorting algorithm is a process that social media platforms use to show the user the most interesting message for him.
2. Influencer - a popular social media personality who influences the target market and under whose influence the customer is ready to purchase the product.
3. Share of advertising exposure - the share of the company's traffic relative to the total traffic from the advertising resource. This metric is expressed as a percentage and is used to analyze how the ad performs better than the competition.
4. Engagement rate is the sum of user interactions with content on social media. To calculate it, you need to use the following formula: total number of likes and shares / total number of followers x 100.
5. Likes are a way users interact with social media, with which they can show what they like or dislike in each particular social network.
6. Social media marketing is the process of promoting campaigns throughsocial media.
7. News Feed - social media feeds that are created based on user tastes, their friends' content and subscriptions.
8. Reach is the total number of people who see the post.
9. Social media followers are users who choose to follow an organization's group or community.
10. User Content - Content that has been created by fans of an organization, product or service.
11. Promotional contacts with the audience - how many times the content is displayed in the news feed.
12. Social proof is a social and psychological phenomenon when users trust a product or content based only on the number of reviews of the people who use it.
13. Hashtag - a phrase preceded by asign that identifies messages on a specific topic.

Digital Marketing Terms

Digital or digital marketing is a relatively new phenomenon. And thanks to him, in the long history of marketing, various concepts have appeared that did not exist before. Let's list these new terms in marketing related to the digital sphere:

1. Marketing automation is the process of automatically sending content to website visitors based on the actions they take or how they interact with the page.
2. Gamification is a style of marketing that encourages consumers to buy through the use of a strategy in the form of a game.
3. Geo-targeting - demonstration of content to customers based onwhere they are located geographically.
4. The Consumer Loy alty Index, or NPS, is a tool that measures customer loy alty to a product and their attitude towards a company.
5. Lifestreaming is a marketing tactic in which a company records and shares a video of a meeting, conference, or event, and tells how it unfolds.
6. Lead scoring, or lead scoring - the process of ranking potential customers based on the likelihood of them making a purchase in the company.
7. Mobile marketing is an interactive marketing channel for promotion that reorganizes itself and is therefore easy to view content on a mobile device. To do this, use the adaptive design of a web page or mobile application.
8. A podcast is a series of audio recordings, usually focused on a specific topic or area of expertise. These recordings can be streamed or downloaded to the Internet.
9. Bounce rate is the rate at which a user enters and leaves a site after viewing one page.
10. User interface - includes all the graphical controls that the client will use to interact with the site. These can be drop-down menus, buttons, etc.
11. User experience is the emotional attitude and reaction of visitors when interacting with the site.
12. Prospecting is a way to guide potential customers through a marketing funnel and motivate them to buy an organization's product or service.
13. USP, or Unique Selling Proposition, is what a company offers and what sets the product apart from the competition.
14. Chatbots are an online service with artificial intelligence that the company's customers interact with. Chatbots imitate a user's conversation with a team member, even if he is not actually at his workplace at that moment.
15. E-commerce is the buying and selling of goods and services through an online platform.

SEO and internet marketing terms

SEO and paid search is a well-known marketing tactic that you can use to get your content out to the right people. Below are some internet marketing terms you need to know when working with search engines and SEO:

1. No-Follow Link - An HTML element that tells search engines that outbound links should not pass their weight to the page that was followed. It must be present in advertising links.
2. Page authority is a rating system that predicts how well a particular web page will rank in search results. The higher the score, the more likely it is to rank in the top ten of search results.
3. On-Page Optimization - All SEO-related elements on a page that can be modified and used to influence search rankings. Includes tags, meta descriptions and more.
4. Long tail keyword, or Long Tail Keyword - a series of keywords,which are very specific to custom searches. They are typically three to four words long and describe exactly what the customer is looking for.
5. Title, or Title - an HTML element that tells search engines and users what this page is about. The title must not exceed 68 characters. The tag appears as a blue link in search results.
6. Inbound marketing is a way to promote using links to useful content that lead the user to the company's website from another site.
7. Click through rate, or CTR - the ratio of the number of times a user clicks a link to the total number of users who see it.
8. Keyword, or keyword is one of the basic terms in the vocabulary of Internet marketing and SEO, which refers to the words used by search engines to categorize content into search results.
9. Meta description or Meta Description is an HTML tag that appears below a page link in search results. It should summarize what is being said on the web page. Short description of the page should not exceed 320 characters.
10. Conversion Optimization, or CRO is one of the basic terms of Internet marketing, which means conversion optimization by increasing the proportion of customers visiting the site. This could mean purchasing a product or signing up for a newsletter.
11. Organic traffic is the number of visitors to a web page that were not influenced by ads or paid content. These visitors usually come from the search engine where they found the page. Organic traffic depends onsite ranking for specific keywords.
12. Responsive design is a way of designing web pages where it automatically adjusts the content of the site depending on which device the visitor is viewing the site on.
13. Site Score, or Domain Authority, is a ranking metric that predicts how well your site will rank in search engines. Unlike Page Authority, this metric is for the site as a whole.
14. Pay-per-click is a marketing tactic whereby an organization promoting a particular webpage pays every time a user clicks on its link. This is a way for businesses to drive direct traffic to a webpage rather than waiting for organic traffic.
15. A landing page is typically a stand-alone sales page used for direct search and promotional traffic.
16. Page views - the number of times a web page has been viewed.
17. Markup schemas are a way to add additional search metadata to encourage users to click on a link.
18. Unique visitor - a site visitor who visited a particular page at least once in a certain period of time. A unique visitor is identified by their IP address.
19. A human-readable URL, or Slug, is a part of a URL that helps search engines distinguish one post from another. It is a card that site visitors use to access a particular web page.

Important terms forEmail Marketing

In order to participate in the discussion of Email Marketing and understand most of the terms, you can use the information below:

1. CASL, or Canadian anti-spam legislation, is a Canadian anti-spam law that requires businesses to obtain consent from users in order to send them emails.
2. ESP, or Email service provider - an email service provider, as well as tools for creating newsletters.
3. A/b testing - using two different versions of an email newsletter or certain elements of it to see which works best.
4. A dedicated IP address is a unique Internet address that identifies site visitors based on the computer or device they use to visit the site.
5. Hard bounce - an email returned to the sender because the address does not exist. Emails may also be bounced because recipients have blocked the address.
6. Bounce rate - this term refers to letters that were sent to the recipient but returned back to the sender before being opened. There are many reasons why this could happen, including the recipient's mailbox being full or their email being filtered by a network administrator.
7. Multivariate testing is a way to test different formats using a single email to see what connects a company to its audience. Unlike A/B testing, which changes one variable,in these tests, several variables are changed at the same time.
8. Email open rate is the number of open messages relative to the total number of emails sent.
9. Preheader, or Pre-header - a short summary to tell the user what the email is about.
10. Open Length, or Open Length - the time that has passed since the email was opened by the user until it was closed.
11. Mailer reputation is a score an organization receives based on how likely their emails are to be desirable to a user. The higher the company's score, the more likely they are to reach their recipients.
12. Spam-trigger - words in an e-mail, due to the presence of which the letter can be marked as spam. However, it is important to note that avoiding certain words or phrases does not guarantee that an email will not end up in spam.
13. Segmentation list - a way of dividing the lists of users for mailing in a certain category. These categories can be based on a variety of factors, including demographics, actions taken on the website, etc.
14. The subject line is what tells recipients what to expect from the email before they open it. The subject line should help the reader identify the purpose of sending this email.

The marketing vocabulary changes very quickly, so it's important to make sure your vocabulary grows with it. You have now become familiar with a few new concepts and, inif necessary, you can use them in conversations with colleagues and superiors, when discussing a marketing strategy and to demonstrate your professionalism.