MARKETING Flashcards
Affiliate marketing
Is a type of performance-based marketing in which a business rewards one
or more affiliates for each visitor or customer brought by the affiliate’s own
marketing efforts
Attrition Rate
A factor, normally expressed as a percentage, reflecting the degree of
losses of customers/visitors etc. due to various causes within a specified
period of time
Behavioural
targeting
Behavioural targeting comprises a range of technologies and techniques
used by online website publishers and advertisers aimed at increasing the
effectiveness of advertising using user web-browsing behaviour
information. In particular, “behavioural targeting uses information
collected from an individual’s web-browsing behaviour (e.g., the pages that
they have visited or the searches they have conducted) to select
advertisements to display”.
Buzz
The interaction of consumers and users of a product or service which
amplifies or alters the original marketing message
Call to action
A call to action aims to persuade a visitor to perform a certain act
immediately. “Buy Now!” and “Register Today!” are some common
examples. The call to action is intended to improve the market’s response
rate to the ad copy, as its absence may cause a visitor to forget about the
ad and move on to other things
Churn rate
The percentage of subscribers to a service that discontinue their
subscription to that service in a given time period.
In order for a company to expand its clientele, its growth rate (i.e. its
number of new customers) must exceed its churn rate.
Closed loop
marketing
Closed loop marketing is a highly effective method of collecting and
analysing customer data from multiple channels and using the information
to create targeted content for groups of customers. It provides a
continuous cycle of obtaining customer’s preferences and adjusting the
marketing strategy to apply
Content marketing
Content marketing is a marketing technique of creating and distributing
valuable, relevant and consistent content to attract and acquire a clearly
defined audience – with the objective of driving profitable customer action
Conversion Rate
Proportion of visitors to a site, or viewers of an advert who takes an action
Core Product
The fundamental features of the product that meet the user’s needs.
Core Values
The principles, ethos and philosophical ideology that all employees of an
organisation are expected to use, live by and demonstrate on a daily basis
Cross selling
The practice of selling or suggesting related or complimentary products to
a prospect or customer. Cross selling is one of the easiest and most
effective methods of marketing. In the financial services arena, cross selling
can mean selling different types of investments to investors, or even
insurance to investors, or tax preparation to retirement planning clients
Customer
Expectations
The anticipated benefits of a brand interaction, whether explicit or implicit
Customer Relationship
Management (CRM)
A marketing led approach to building and sustaining long term business
with customers
Customer Retention
Techniques to maintain relationships with existing customers.
Customer
segmentation
Customer segmentation is the practice of dividing a customer base into
groups of individuals that are similar in specific ways relevant to marketing,
such as age, gender, interests and spending habits.
Customer value
In every buying decision, a consumer asks the same question: ‘is what I am
going to receive worth what I have to give up in order to get it?’ The gain
the consumer receives for the benefit is weighed against the cost the
consumer must pay to acquire the benefit. The value the individual
consumer places on a product or service becomes the customer value for
that offering.
Benefits – costs = customer value
Cybermarketing
A term used to refer to marketing using machines, electronic
communications and the web
Data-analytics
Data analytics (DA) is the science of examining raw data with the purpose
of drawing conclusions about that information
Datamart
A data mart is a simple form of a data warehouse that is focused on a single
subject (or functional area), such as Sales, Finance, or Marketing. Data
marts are often built and controlled by a single department within an
organisation. Given their single-subject focus, data marts usually draw data from only a few sources. The sources could be internal operational
systems, a central data warehouse, or external data
Data warehouse
A data warehouse, unlike a data mart, deals with multiple subject areas
and is typically implemented and controlled by a central organisational unit
such as the corporate Information Technology (IT) group. Often, it is called
a central or enterprise data warehouse. Typically, a data warehouse
assembles data from multiple source systems
Direct Marketing
Marketing to customers using one or more advertising media aimed at
achieving measurable response and / or transaction
Direct Response
Usually achieved in an internet marketing context by call back services.
Dynamic Pricing
Prices can be updated in real time according to the type of customer or
current market conditions
Early Adopters
Individuals / companies or departments that invest in new technologies /
methodologies when they first become available in an attempt to gain a
competitive advantage despite the higher risk entailed that that involved in
a more cautious approach
Elevator pitch
Very concise presentation of an idea covering all of its critical aspects, and
delivered within a very short time (the approximate duration of an elevator
ride)
eMarketing
Achieving marketing objectives through use of electronic communications
technology.
To entrench
To place (someone or something) in a very strong position that cannot
easily be changed
Extended Product
Additional features and benefits beyond the core product.
Extension
A new product or service that leverages the brand equity of related
product or service
Feature
An element of a product, service, or experience designed to deliver a
benefit
Guerrilla Marketing
A marketing program that uses non-traditional methods at a typically low
cost to sell or advertise products or services
Haptics
Tactile, or touch, communication; one of the most basic forms of
communication
Inbound marketing
Inbound marketing is a strategy in which a business generates leads by
providing valuable content that draws customers to them. Examples
include the use of blog posts, guest blogging, social media and podcasts.
Inbound marketing is often more cost-effective than outbound marketing,
which includes cold sales calls and paid advertising
Integrated
Marketing
A collaborative method for creating consistent messaging and an overall
narrative that ties together across different media.
Interruption
Marketing
Marketing communications that disrupt customers’ activities
Lead
Details about a potential customer
Loyalty Techniques
Customers sign up to an incentive scheme where they receive points for
repeat purchases, which can be converted into offers such as discounts,
free products or cash
Market Leader
A company that has achieved a dominant position—either in scale or
influence—within its field. This leading position often comes about because
the company was the first to market a certain type of product and, with the
protection of a patent, has managed to consolidate its position before
direct competition was possible. Alternatively, a company may overtake a
previous market leader through greater efficiency and skilful positioning.
Market Share
A company’s share of total sales of a given category of product on a given
market. Can be expressed either in terms of volume (how many units sold)
or value (the worth of units sold)
Market Space
A virtual marketplace such as the internet in which no direct contact occurs
between buyers and sellers
Mass customisation
The process of delivering wide-market goods and services that are
modified to satisfy a specific customer need. Mass customisation is a
marketing and manufacturing technique that combines the flexibility and
personalisation of “custom-made” with the low unit costs associated with
mass production. Many applications of mass customisation include
software-based product configurations that allow end-users to add and/or
change certain functionalities of a core product. Sometimes called “made
to order” or “built to order
Mass individualisation
The customizing of products for individual consumers on a large scale and
at a low cost. It requires the consumer to participate in the
individualisation
Niche marketing
Concentrating all marketing efforts on a small but specific and well defined
segment of the population. Niches do not ‘exist’ but are ‘created’ by
identifying needs, wants, and requirements that are being addressed
poorly or not at all by other firms, and developing and delivering goods or
services to satisfy them. As a strategy, niche marketing is aimed at being a
big fish in a small pond instead of being a small fish in a big pond. Also
called micromarketing
Permission
Marketing
Customers agree (opt in) to be involved in an organisations marketing
activities, usually as a result of an incentive.
Personalisation
Prospects receive custom-tailored information.
Pitch(ing)
Making a proposal to a client to provide services or a product
Price Transparency
Customer knowledge about pricing increases due to increased availability
of pricing information.
Price Variable
The element of the marketing mix that involves defining product prices and
pricing models
Pricing Model
Describes the form of payment such as outright purchase, auction, rental,
volume purchases and credit terms
Product Recall
Taking back a product that shows defects and faults
Promotion (online
and offline)
Online promotion uses communication via the internet itself to raise
awareness about a site and drive traffic to it. This promotion may take the
form of links from other sites, banner advertisements or targeted email.
Offline promotion uses traditional media such as print, television or
newspaper advertising and word of mouth to promote a company’s web
site.
Prospect
A potential client
Prosumer
Producer and consumer, the customer is closely involved in specifying their
requirements in a product
Prototype
A prototype is a preliminary version of part (or a framework of all) of a web
site that can be reviewed by its target audience, or the marketing team.
Prototyping is an iterative process where web site users suggest
modifications before further prototypes are made and the final version of
the site is developed
Relationship
Marketing
Consistent application of up to date knowledge of individual customers to
product and service design, which is communicated interactively in order
to develop a continuous mutually beneficial and long term relationship
Retail Channel
Retailers use of the internet as both a communication and a transactional
channel concurrently in business to consumer markets
Retention
The ability to retain customers over time
RFP
Request for proposal.
Sales Generation
Offers
These are offers that encourage product trial. An example would be a
coupon offering money off a purchase
Sales Promotions
The internet offers tremendous opportunity for sales promotions of
different type since it is more immediate than any other medium - it is
always available for communication and tactical variations in the details of
the promotion can be made at short notice
Service Delivery Gap
The mismatch between what is expected and delivered by a brand, product
or company.
Slogan
A catchphrase, tagline, strap line, or rally cry.
Smart markets
Markets characterized by the great amount of knowledge and information
needed to understand the competitor and the consumer
Sponsorship
Sponsorship involves a company paying money to advertise on a web site.
The arrangement may involve more than advertising. Sponsorship is similar
to co-branding.
Testing Phase
Testing involves different aspects of the content such as spelling, validity of
links, formatting on different web browsers and dynamic features such as
form filling or database enquiries
Unique Selling
Proposition (USP)
The driving competitive advantage. (Compare to “Value Proposition” and
“Brand Promise.”)
Upselling
A sales strategy where the seller will market higher-end products to
customers. Showing visitors that other versions or models may better fulfil
their needs (even if that isn’t necessarily true). Companies that excel at upselling are effective at helping customers visualize the value they will get
by ordering a higher-priced item
Value Proposition
An analysis and quantified statement of the benefits that consumers can
expect. Note: You can have a value proposition that isn’t unique (i.e., a
“Unique Selling Proposition.”)
Value Proposition of
Site
The benefits or value of a web site that are evident to users
Vertical Portals
These are generally business to business sites that will host content to help
participants in an industry to get their work done by providing industry
news, details of business techniques, products and service reviews.
Viral Marketing
Email or communication used to transmit a promotional message to
another potential customer from a customer
Virtual Community
An internet based forum for special interest groups to communicate using
a bulletin board to post messages
Word of mouth
An unpaid form of promotion in which satisfied customers tell other people
how much they like a business, product or service.
