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Marketing Glossary

Here you will find a broad list of common
marketing terms that are provided with clear explanations.

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Affiliate marketing: a method of promoting web businesses in which an affiliate is rewarded for every visitor, subscriber and/or customer provided through their efforts. It is similar to the established concept of being paid a finder's-fee for the introduction of new clients to a business.

Anchor Text: Refers to the hyperlinked words on a web page i.e. the words you click on when you click a link. These are an important consideration in trying to get your website favourably rated by a search engine. The anchor text words are best written to describe what the information is you are linking to, rather than the ubiquitous 'click here'.

Blog: Abbreviation of 'web-log' which refers to a specific type of website format that provides news, commentary or journal style interaction with its audience. This is an exploding trend amongst web and internet users, where usually an individual uses the blog, to communicate personal thoughts, events etc that can be read by others, commented on, with comments appearing in a chronological order. It is becoming a popular tool amongst marketers.

Brand: Usually a product or service, presented as a definable identity' that often incorporates a specific name, logo or design, or other attributes that form part of the identity'. Many brands develop an intrinsic value over time that can be counted as part of a business' assets.

Brand Loyal: Usually used to describe consumers who are considered very loyal to a particular brand, measured by their commitment to repurchase it. For instance, brand loyal consumers would be those who purchase only one brand consistently. Loyalists may also be recognized by their positive word-of-mouth advocacy of the brand to others.

Branding: Business activities (usually marketing driven), that contribute to developing and establishing a brand image. Brand image is usually based on a set of brand beliefs that consumers/customers develop about a brand, based on what attributes the consumer believes the brand has, and how important and relevant these are. Branding can include a range of things like logo, design, signage, brand reminders, and communication messages.

Broadcast Email campaign: Email communication sent as a bulk quantity or en masse to several individual recipients at the same time.

Brochure: A printed or electronic form of advertising in a format using both word copy and images. They are usually more than 2 pages long and often used to communicate products or services or information about a specific organization, in a summary form. A tri-fold brochure is a common format used by many organizations. Their appearance is usually high quality with a glossy look, printed on thick paper. They can also be used in a two page format unfolded, or several pages long, where they are folded into panels (like a map).

Business Plan: A written record that documents a business's planning efforts including its' objectives, strategies, and the action steps needed to achieve its overall vision. This will normally entail a review of all aspects of the business's functions, including marketing, operations & staffing requirements, financial analysis of the business, with a base of 3-5 years used for the review. See Resources for more information.

Catalogue: A printed list of products, often featuring product images, usually with a brief description (including features, alternative product options such as colours, sizes, strengths etc) and sometimes pricing included. Sometimes promotional deals for purchasing the products will also be included

Channel: Shorter version of the term distribution channel or marketing channel. See below.

Competitive Advantage: Describes the business advantage that a corporation or business has versus competitors. First popularized by Michael Porter, this concept defined a company as having a competitive advantage over its rivals when its profits exceeded the average for its industry. The two types of competitive advantage proposed by Porter included (1) cost advantage and (2) differentiation advantage.

Copy: Refers to the written material or words used in advertisements, whether printed, broadcast or other medium. Copy is usually provided in advertising agencies by specialized copy-writers.

CRM: Acronym for Customer Relationship Management, which refers to the technologies and processes, which companies utilize to manage their contact and relationships with their client base. CRM software particularly is becoming more popular and sophisticated, allowing businesses to use their stored customer information, utilizing automated responses and other electronic means, to maintain a relevant dialogue with their database.

Demographics: A type of criteria that is used to describe certain aspects of a particular population such as age, income, sex, religion etc. See Resources for more information.

Differentiation: In marketing, this usually refers to the ability to develop and communicate a unique benefit or proposition for the customer that is different from the competitors in that target market. The goal of differentiation is to avoid being substitutable or replaced by a competitor offering similar benefits. Successful differentiation is usually based on a sustainable advantage or edge that competitors cannot copy easily or preferably at all.

Distribution channel: Often also called marketing channel or trade channel. It refers to intermediary organizations or agencies (middle men) that help in the process of making a product or service available to the end-user. Examples may include grocery chains, pharmacies, wholesalers etc. See also channel.

E-Commerce: Shortened term for 'electronic commerce', it is used to describe a broad group of business activities that are conducted electronically via the internet or other computer networks. These activities may include buying, selling, marketing, servicing and distribution, The most common type of e-commerce referred to is websites that sell products or services via the internet, where the whole sales transaction is conducted electronically, rather than by person.

E-marketing: Marketing using the internet or other digital technology, including such vehicles as emails, websites, etc. May be used alone or in tandem with other traditional forms of marketing.

Ezine: An electronic version of a newsletter or magazine whether delivered by an email or a website.

Flier: A one-two page advertising document often used for letterbox, mail or electronic distribution. The printed paper version is usually less expensive and premium looking than a brochure. As its costs can be less than a brochure, it is often preferred for mass distribution as mentioned above..

Four P's of marketing: Based on the concept popularised by E.J. McCarthy in the 80's, this refers to the marketing tools that an organization or business uses to achieve its marketing objectives for a particular target market. The original concept included product, price, place (referring to distribution) & promotion (referring broadly to all forms of advertising & promotion). As the concept grew in use, it was broadened so that 'service' could be substituted for 'product' for those organizations providing services. Several other P concepts have since been proposed by both researchers and popularist marketing commentators.

Graphic Design: A form of design (previously termed Visual Design), specializing in artwork using graphics, text or images to communicate a style, expression or an idea. These technically skilled designers can develop a brand identity, including a logo, with specific fonts, colours and other design elements that contribute to the overall brand. Graphic designers are often used for artwork required for developing materials such as brochures, mailers, fliers, websites, advertisements etc anything where visual elements are needed to be designed.

Keywords: Used most commonly in relation to websites. These are the main words that a searcher would use in a search engine when trying to find a specific thing on the web. Nearly all websites have a capacity to record specific words for their websites that flag to a searcher that the website is related to the search term being sought. It is a basic method for flagging your relevance to the Search Engines that businesses try and get listed with. Key words can be used cleverly in specific parts of the website, as well as in PR releases to increase search engine listing success.

Landing page: A specific page included in websites that a visitor ultimately reaches after clicking an advertisement or advertised link. Often, this page is optimized for a specific keyword term or phrase. It may be used for activities such as a registration page for a e-newsletter, or other offline communications e. g PR releases, etc.

Lead (sales): These are potential customers, considered the highest probability of being converted into real customers. They are considered the highest probability of sales success, as they have not only been qualified as likely customers but have indicated interest in the product or service through an enquiry or response to marketing efforts. This is what customer possibilities the sales team like the most to receive from marketing as this is where sales are most likely to be successful and easiest obtained. This is sometimes mistakenly called a prospect. See Prospect and Suspects below.

Marketing Mix: This term is usually a reference to the four 'P's of marketing. Technically, however it covers whatever basic marketing tools that a business uses to achieve its marketing objectives. These four P's are: product (or service), price, place, and promotion.

Marketing Plan: Usually a written document that records details of the �what/how/when' of a business will achieve its marketing objectives. It differs from a business plan, in that it focuses on the marketing aspects of a product or a company, and does not usually address the other functions reviewed in a business plan. See Resources for more information on Marketing Plans.

Marketing Strategy: Often confused with tactics and other elements that a business can use, a marketing strategy is basically a game plan or roadmap of how a business can achieve its marketing objectives. It differs from business strategy in that it focuses only on the marketing aspects of a business. Most corporations develop business strategies that encompass all functions within the business such as human resources, manufacturing, finance, and operations, as well as marketing. Marketing strategy covers product development, pricing, distribution and its promotion (marketing mix); and identifies which target markets a business will focus on. It also identifies how the product or service will be positioned in the customer's mind, and how resources such as advertising & promotion investment will be allocated to implement this strategy to achieve the marketing objectives.

Market Share: Refers to what portion or share of a defined market, that a business or brand has, compared to competitors. Market share is usually expressed as a percentage, and the business/brand with the largest share is considered the market leader. This calculation usually requires some measurement of sales or other parameter, of the market as well as the competitors that make up the market. Some research companies specialize in measuring this information for a particular industry or groups of industries.

Meta Tags: Information placed in a web page not intended for users to see but instead which typically passes information to search engine crawlers, browser software and some other applications. META tags are part of HTML but are there for the sole use of search engine spiders.

Metrics: An increasingly popular word, used to describe types of measurement(s), used to review performance of some aspect of business, to assess effectiveness. They may be used in areas such as product development, sales force conversion rates, web site conversion rates etc. See ROI.

Opt-in: Usually used in relation to email that recipients have previously requested by signing up at a Web site or special ad banner. Typically, Web users are invited to sign up for promotional information about one or more categories of products or services. Those who sign up have thus "opted in." Anyone sending them email as a result hopes that the message will not be perceived as unwanted spam. A double opt-in approach requires the email sender to verify a second time that the recipient is happy to receive their communications.

Podcast: is a multimedia file distributed over the Internet using syndication feeds, for playback on mobile devices and personal computers. This is becoming an increasingly popular format for communications provided over the internet, as it allows consumers to take the communication and view/listen to it at their own convenience, when time is available. Suppliers of podcasts are called podcasters.

Positioning: Refers to how a business or organization positions itself or its product and services in the minds of its target customers, ideally so that it has maximal appeal. See Value Positioning Statement

PPC: Abbreviation of the term: Pay-Per-Click. It refers to an online advertising payment model in which payment is based solely on qualifying click-throughs. The size of the payment is usually determined by bidding on keywords. The two largest PPC schemes are Overture and Google AdWords.

Product Life Cycle: a concept developed in the 80's that proposes that products or brands follow a sequence of stages including introduction, growth, maturity, and sales decline.

Prospects: A list of contacts who have been identified and/or qualified as being potential customers. See Leads and Suspects for other definitions

Psychographics: Used to profile target customers such as consumers, these are any attributes relating to personality, values, attitudes, interests, or lifestyles.

Reciprocal link strategy: Links based on an agreement by two sites to link to each other.

Reciprocal linking is often used by small/midsize sites as an inexpensive way to increase Web site traffic and link popularity. However, the success of this tactic will largely depend on what volume of traffic the other websites achieve and whether this results in flow-on visits to your website.

ROI: Acronym for Return-On-Investment, a financial performance measurement. In its simplest form, it is used to compare the money earned in relation to an investment. It is now being adopted widely by marketers, in an attempt to measure and analyse what promotional tactics work most effectively. Metrics are often used for assessing ROI.

RSS: (Rich Site Summary) is a format for delivering regularly changing web content. The format allows for the syndication of lists of hyperlinks, along with other information that helps viewers decide whether they want to follow the link. RSS allows a person's computer to fetch and understand the information by retrieving summaries of the latest content. It is an alternative means of accessing the vast amount of information that now exists on the Web. Instead of the user browsing websites for information of interest, the information is sent directly to the user.

Search Engine Friendly: a web page designed and optimized for high search engine rankings. Such pages are usually rich in keywords and structured for ease of crawling. Additionally, they have been developed not to breach Search engine guidelines that are strictly adhered to by engines such as Google, Yahoo and MSN.

Search Engine Optimisation: Often abbreviated as 'search' or SEO, this is the term used to describe the marketing technique of preparing a website to enhance its chances of being ranked in the top results of a search engine once a relevant search is undertaken. A number of factors are important when optimising a website, including the content and structure of the website's copy and page layout, the HTML meta-tags and the submission process.

Search engine spider: Also known as a web crawler, it is a program which browses the Web in a methodical, automated manner. Web crawlers are mainly used to create a copy of all the visited pages for later processing by a search engine that will index the downloaded pages to provide fast searches.

Segmentation: Shortened version of market segmentation, one of the first steps undertaken in implementing target marketing, as opposed to other marketing approaches such as mass marketing. It involves sorting customers into groups using a number of variables as the basis, including demographics, psychographics, geography and behavioural variables.

Social Media: refers to online tools and programs that allow people to interact & communicate on the internet through swapping of information including videos, photographs and other communications. These include currently programs such as Facebook, MySpace, LinkedIn and many more.

Suspects: Identified names or contact details, of potential customers. These are considered only very broadly as potential customers as they have not been qualified, as being a suitable prospect or to have shown any interest in purchase. Suspects need to be �qualified� before becoming a �prospect�. See Prospect.

SWOT analysis: Basic analysis using a well established approach of reviewing a strategy or business (usually) to list its Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T). This basic form of analysis can be used by any type of business, regardless of size. It is usually used in strategic planning or risk analysis of a situation.

Targeting: Refers to the process of identifying the specific needs of segments, selecting one or more of these segments as a target, and developing marketing programs directed towards each. Also sometimes called target marketing.

Target audience: A defined, short description of who your customers are that you will be focusing on when targeting your marketing efforts. More specifically, the term is used to describe the groups selected as being the most appropriate (eg; primary purchasers, users or influencers) for a particular advertising campaign or schedule. The target audience may be defined in demographic or psychographic terms, or a combination of both. See Targeting.

TARPs: Acronym for Television Average Rating Points, a term used in audience research for assessing the audience to a commercial. If a TV commercial is watched by 10% of the target audience it achieves 10 TARPs. When all the TARPs for individual commercials are added up, they become Gross Rating Points (GRPs).

Testimonials: In marketing, refers to a personal endorsement or reference given by a customer, usually about the positive attributes experienced by this customer in their use of a product or service. Sometimes big consumer brands will use celebrities or well-known personalities to provide a testimonial to build or enhance a brand image positively.

Touch point: Describes any point in the customer transaction of purchasing or using a product or service where the customer experiences the brand/or is touched by the brand (product or service).

USP: Acronym for Unique Selling Proposition, also known as Unique Selling Benefit, Unique Benefit, and Value Proposition. In plain speak, this refers to the reason why somebody should buy from you and not your competition. USP specifically means the unique benefits that your products or services offer customers.

Value Positioning Statement: Also commonly called Positioning Statement as well as several other terms. A concise written statement of the positioning concept, conveying the essential features of the brand and its niche, and what the brand is intended to stand for in its target market's mind. It provides a blueprint for the marketing and development of a brand.

Viral Marketing: In its most basic form, refers to marketing that relies on electronic Word-of-Mouth. It also means any marketing technique that induces Web sites or users to pass on a marketing message to other sites or users, creating a potentially exponential growth in the message's visibility and effect. Please tell a friend about our site... 'This is viral marketing"..

Web 2.0: Refers to improved internet and web design technology that has allowed the production of many online tools and features such as blogs, social media, online video, RSS and others that allow content to be shared, online interaction and collaboration.

Webinar: Refers to a version of seminars which are conducted over the Web. In contrast to a Webcast, which is transmission of information in one direction only, a webinar is designed to be interactive between the presenter and audience. A webinar is 'live' in the sense that information is conveyed according to an agenda, with a starting and ending time.

Wiki: Refers to a type of website where users can continually add and edit unlimited web pages in their own web browser in a collaborative way. The most famous example to date is Wikipedia. Wikis are often used to develop community or collaborative websites. Businesses commonly use them internally to provide intranet service to employees. Generally they are very plain looking without lots of extra graphics added.

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