Marketing Jargon

This page just explains through laymen terms marketing jargon I will frequently use throughout this blog. Feel free to comment or email reachme [at] technmark [dawt] net if you want definitions or detailed articles about jargons seen in this website or elsewhere

 

 4C/5C – Context, Consumer, Company, Competitors (and Collaborators). It’s a framework that guides you to systematically look for information behind the Social Context, Consumer Behavior, Own Company’s Strengths and Weaknesses, Competitor’s Strengths and Weaknesses and Collaborator’s Strengths and Weaknesses. It’s an important part to allowing you to have an overall understanding of the market you’re entering

4P – Price, Place, Promotion, Product basically summarizes the execution part of any marketing strategy. To achieve your strategic goals you will need to decide on your Pricing Model, Channels of Distributing Products to Customers (Place), Promoting about your products (Advertising or Coupons etc.) and actually have a Product to sell

B2B – Business to Business. A type of business model that revolves around providing products / services to other companies that allows them to operate their business or improve their operations

B2C – Business to Customer. A type of business model that revolves around providing products / services to the masses. Any product or service that can be used for personal use is a good way to determine whether the manufacturer is a B2C company

Break-Even – A point where companies revenue = costs. A good measurement to calculate how many units of product or services a company needs to sell before it doesn’t make anymore losses

Content Curation – A process that involves collecting, organizing and displaying information relevant to a particular topic

Contribution Margin – A way to measure how profitable each single unit of sales is. It measures profit per unit of sales makes divided by selling price per unit of sales, generating a percentage measure. Profit per unit is calculated through subtracting selling price per unit of sales by variable cost per unit of sales

CRM – Customer Relationship Management. A system within companies on how they manage interactions between current and future customers, with the goal of retaining existing customers through engaging them

Economies of Scale – The phenomenon where the larger the volume of products produced, the lower the variable cost. This could be due to many reasons such as bulk buying discounts or increased efficiency due to experience

EVC – Economic Value for Customers. It’s the maximum price customers are willing to pay based on price of current alternative the customer is paying plus the added value your product gives compared to the current alternative.

Fad – A short term popularity buzz over a novelty item or event that explodes and fades away very quickly

FMCG – Fast Moving Consumer Goods, any kind of consumer goods that is easily used up and re-purchased falls under this category. Examples are shampoo, hair conditioners, diapers, packaged snacks etc

Freemium – A pricing strategy where the basic features of the product / service is free while the advanced features require payments to unlock

Long Tail Theory – A theory that opposes the Pareto Principle (80/20 Principle) saying that with removal of limitations to distribution of goods (eg. invention of internet), non-mainstream and low demand goods can sell enough at low cost to measure up against mainstream and high demand goods

Primary Demand – The demand from the market for an overall category of a product

R&D – Research and Development

R&D Productivity – Efficiency of R&D’s effort in developing a product that successfully launches onto the market. Eg. 1 successfully launched product out of 3 development projects has higher R&D productivity than 1 successfully launched product out of 6 development projects

Scattershot / Shotgun Approach – Launching multiple product models with many product specifications at the market to satisfy demands of all kinds of customers

SME – Small and Medium sized enterprises

Measured Media – Media spending that can be measured. High quality measured media that can be measured by third party sources that provide credible findings cost more

Path to Market / Place – The channels used to get products / services into customer hands

Positioning – (Refer to Targeting) Positioning is the next step after finding your target segments, deciding how your company will differentiate from competitors in providing the best and unique market solution to the customers. Eg. A Company may position itself to be the best company in providing time saving devices

ROI – Return On Investment. A term describing the efficiency of effect generated through investment. The higher the ROI, the more efficient the investment was at hitting a desirable effect (eg. Reaching Audiences, Increasing Sales etc.)

Sales Cycle - How much time it takes before a sales is made. Eg. If a person buys cough medicine every quarter of the year, then the sales cycle is 3 months

Segmenting – The criteria you use to categorize your market. Eg. Age, Income Level, Lifestyle

STP – Segmentation, Targeting, Positioning. A framework to understand who your target customers are and how to deliver the best market value to them

Targeting / Target Segment – (Refer to Definition of “Segmenting”) After segmenting your market into different categories, which specific combinations of categories (eg. Middle-Age, Middle-Income, Workaholic segment) would be your target? In the words of a marketer, “what segments are you targeting?”

Trend – A novelty item or event that explodes in popularity and has much longer term influence on the future of a market

 

by Stefen Zhao (I’m also known as Stef. Find me at reachme [at] technmark [dawt] net / twitter.com/technmark / google.com/+StefenZhao)