glossary of marketing terms

80/20 Rule — The common concept that 80% of your revenue comes from 20% of your customers.

Benchmark — A standard by which something can be measured or judged.

Competitive Analysis — A structured analysis of your major competitors to determine how you and they differ (or do not differ) from one another.

Demographics — The statistical study of human populations, especially with reference to size and density, distribution, and vital statistics.

Demographic Segmentation — A marketing analysis that targets groups of prospects by factors such as age, sex, marital status, income, occupation, family size, and education (definition from Kenneth E. Marino, Forecasting Sales and Planning Projects).

Direct Competitors — Organizations or individuals who offer the exact same product or service that you do. Direct competitors offer an alternative choice to your target markets.

Direct Mail — The sale of products directly to the customer through the mail, usually via catalogs, flyers, or postcards.

Distinctive Competence — What you do better than anyone else in your market.

Evaluation — The process of gathering and analyzing measurable data over time to determine if your marketing efforts have been effective in helping you meet your stated goals and objectives.

External Analysis — Analysis of factors outside your business that present opportunities or threats.

The Four P’s — Product, price, place, and promotion. “Product” is the service or good you are trying to sell. “Price” is the cost the customer must give up to acquire the service or good. “Place” is how you make the product or service available (where it is purchased, how it is sold and delivered). “Promotion” is the means you use to make the product or service visible and attractive to your customer.

Goals — Marketing goals are single statements of non-measurable, long-term effects you wish to achieve by means of your marketing tactics.

Indirect Competitors — Organizations or individuals who offer your customers choices: ways to spend their time or money other than for your product or service. Indirect competitors do not offer the same product or service that you do, but may be a primary reason customers do not choose to spend their resources on your product or service.

Market — A group of people with unsatisfied wants and needs that are willing to exchange and have the ability to buy.

Market Demographics — The statistical study of human populations, especially with reference to size and density, distribution, and vital statistics.

Market Research — The process of gathering data from your target markets relevant to your marketing campaigns, such as customer satisfaction with services or products, buying habits, demographics, etc.

Market Segmentation — The process of grouping your marketing efforts based on groups of prospects targeted by factors such as sex, age, race, marital status, income level, education level, occupation, family size, etc.

Market Share — Your percentage share of the markets you operate in. A business is usually considered dominant when it captures 25% of a market.

Marketing — The process of using intentional strategies to influence your target audience to purchase your product or service.

Media Relations — The process of using intentional strategies to influence the relationship between your organization and the media, or to influence how stories about your organization are reported in the media.

Mission Statement — Short statement of the reason the organization is “in business” and what it wants to accomplish or be known for.

O&P — Overhead and Profits.

Objectives — Single statements of measurable, short-term effects you want to accomplish as a result of your marketing efforts.

Opportunity — One element of a SWOT Analysis, opportunities are things you can realistically strive to accomplish in the interest of strengthening your market position.

Perceived Value — The customer’s perception of the value of a given service or product, typically based on perceptions of service or product quality, perception of how the product or service would meet their needs, estimated amount they’d be willing to pay for it, etc.

Point-of-Purchase Displays — Displays set up in a store or place of business to entice passersby to buy.

Positioning — A marketing method based on determining what market niche your organization should fill and how it should promote its products or services in light of competitive and other forces.

Public or Community Relations — The process of using intentional strategies to influence the relationship between your organization and the publics or communities you serve.

ROI — Return On Investment.

SEO — Search Engine Optimization.

Strategies — The specific tools (e.g., brochures, Web sites, presentations), and/or methods (e.g., returning phone calls the same day, providing tours to all walk-in potential customers) you use to influence your target audience or audiences to decide to purchase your product or service.

Strength — Aspects of your organization that set you apart from the competition. One element of a SWOT Analysis.

SWOT Analysis — The process of analyzing Strengths, Weaknesses, Opportunities, and Threats for your organization in order to determine your top selling points, build on your strengths and opportunities, and reduce your weaknesses and threats.

Target Audience / Market — An identified group, distinguished by socioeconomic, demographic, and/or interest characteristics, that is most likely to purchase your product or service.

Target Marketing — The process of developing focused, intentional marketing efforts directed at meeting the specific needs of your target audience / market.

Threat — One element of a SWOT Analysis, threats are usually things that are outside of your control that affect your market position.

Unique Selling Proposition — The factor(s) that makes your product or service remarkable and differentiate it from its competitors.

Weakness — Aspects of your organization that make you less competitive than your competition; these can be things within your control, or out of your control.

Word-of-Mouth Advertising — The process of relying on current satisfied customers to tell their friends and associates about your business.

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