Digital Marketing Flashcards
Business Performance Monitoring
the process of setting up organizational goals, monitoring the actions and processes used to reach those goals, and creating ways for managers to achieve those goals more effectively.
Performance monitoring is used to analyze business goals and help save on operating costs while generating more revenue. It is also used to improve overall performance of personnel and management.
Competitive Pricing Strategy
the process of strategically selecting price points for your goods or services based on competitor pricing in your market or niche, rather than basing prices solely on business costs or target profit margins. Competitive pricing is typically used by businesses that sell the same or highly similar products in the same market for an extended period, as prices of these products often reach a level of equilibrium.
Conversion Funnel
a process that takes potential customers on a journey toward buying your products or services. They’re the cornerstone of all e-commerce business models, guiding potential customers from the moment they first become aware of your brand to the moment they make a purchase and beyond.
"The purchase funnel"
Awareness “Market Potential”
Interest “Suspects”
Desire “Prospects”
Action “Customers”
customer acquisition cost (CAC)
measures how much an organization spends to acquire new customers. CAC – an important business metric – is the total cost of sales and marketing efforts, as well as property or equipment, needed to convince a customer to buy a product or service.
customer lifetime value (CLV)
the total amount of money a customer is expected to spend with your business, or on your products, during the lifetime of an average business relationship
Customer Purchase Decision
This is the 5 step process by which consumers evaluate making a purchasing decision.
- Problem recognition
- Information search
- Alternatives evaluation
- Purchase decision
- Post-purchase evaluation.
Customer Success
The process of increasing customers’ satisfaction while using a product or service.
Customer success is a specialized form of customer relationship management
Duration of Sessions
The time frame during which there are regular active interactions occurring between a user on a website.
The session is timed out when there is no activity from the user for a predefined time duration (30 minutes by default).
Experimental Pricing
a form of market research aimed at uncovering new strategies or using old strategies and methods to determine how to price your products and services to increase sales and drive conversion for your business.
can easily understand the emotional, functional, and social needs their customers are trying to meet when purchasing a product.
Market Segmentation
a marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action.
Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
segmented in several ways such as geographically, demographically, or behaviorally.
minimize risk by figuring out which products are the most likely to earn a share of a target market and the best ways to market and deliver those products to the market.
Marketing Mix (4Ps – Product, Price, Place, Promotion)
The four essential factors involved in marketing a product or service to the public.
They encompass a range of factors that are considered when marketing a product, including what consumers want, how the product or service meets or fails to meet those wants, how the product or service is perceived in the world, how it stands out from the competition, and how the company that produces it interacts with its customers.
As the marketing industry has evolved, other Ps have been identified: people, process, and physical evidence.
Measure Customer Utility
utility represents the satisfaction or pleasure that consumers receive for consuming a good or service
Utility is measured in units called utils—the Spanish word for useful— but calculating the benefit or satisfaction that consumers receive is abstract and difficult to pinpoint. As a result, economists measure utility in terms of revealed PREFERNCES by observing consumers’ choices. From
Media-Influencer Relations
a long-term approach to building relationships with social media influencers who are a good fit for your product and brand.
Net Promoter Score (NPS)
A metric that is based on a single survey question asking respondents to rate the likelihood that they would recommend a company, product, or service to a friend or colleague.
measures the customer experience of your brand and provides the best metric to anchor your customer experience management program.
Pay Per Action (PPA)
Online advertising payment method whereby the advertiser only pays when the user performs a previously agreed action (may be a sale, a registration or file download, for example).
