the-marketing-terms-that-everyone-should-know

The Marketing Terms That Everyone Should Know

Here on the Tiara Digital Advertising blog, we’ve written posts that cover some of the core components of digital marketing.

Well, we thought it was time to create a blog post that could serve as a marketing checklist — one that not only defines each term, but also offers some helpful resources in case you want to learn about them in more depth.

Instead of throwing hundreds of terms at you from all those other post, I narrowed this one down to the top 47 terms that are imperative to anyone learning about marketing.

Marketing Terms to Know

1. A/B Testing

This is the process of comparing two variations of a single variable to determine which performs best in order to help improve marketing efforts. This is often done in email marketing (with variations in the subject line or copy), calls-to-action (variations in colors or verbiage), and landing pages (variations in content).

2. Analytics

What I sometimes refer to as the “eyes” of inbound marketing, analytics is essentially the discovery and communication of meaningful patterns in data. When referred to in the context of marketing, it’s looking at the data of one’s initiatives (website visitor reports, social, PPC, etc.), analyzing the trends, and developing actionable insights to make better informed marketing decisions.

3. B2B (Business-to-Business)

An adjective used to describe companies that sell to other businesses. For example, Facebook Ads, Ernst & Young and even Tiara Digital Advertising are primarily B2B companies.

4. B2C (Business-to-Consumer)

An adjective used to describe companies that sell directly to consumers. For example, Amazon, Apple, and Nike are primarily B2C companies.

5. Blogging

This is short for web log or weblog. An individual or group of people usually maintains a blog. A personal blog or business blog will traditionally include regular entries of commentary, descriptions of events, or other material, such as photos and video.

Blogging is a core component of digital marketing, as it can accomplish several initiatives simultaneously — like website traffic growth, thought leadership, and lead generation.

6. Sales Funnel

Since we’re going alphabetically, the last part of the funnel process is first! The sales funnel refers to a stage of the buying process leads reach when they’re just about to close as new customers. They’ve identified a problem, have shopped around for possible solutions, and are very close to buying.

Typically, next steps for leads at this stage are a call from a sales rep, a demo, or a free consultation — depending on what type of business is attempting to close the lead.

7. Bounce Rate

Website bounce rate: The percentage of people who land on a page on your website and then leave without clicking on anything else or navigating to any other pages on your site. A high bounce rate generally leads to poor conversion rates because no one is staying on your site long enough to read your content or convert on a landing page (or for any other conversion event).

Email bounce rate: The rate at which an email was unable to be delivered to a recipient’s inbox. A high bounce rate generally means your lists are out-of-date or purchased, or they include many invalid email addresses. In email, not all bounces are bad, so it’s important to distinguish between hard and soft bounces before taking an email address off your list.

8. Buyer Persona

A semi-fictional representation of your ideal customer based on market research and real data about your existing customers. While it helps marketers like you define their target audience, it can also help sales reps qualify leads.

9. Call-to-Action

A call-to-action is a text link, button, image, or some type of web link that encourages a website visitor to visit a landing page and become of lead. Some examples of CTAs are “Subscribe Now” or “Download Now.” These are important for marketers because they’re the “bait” that entices a website visitor to eventually become a lead. So, you can imagine that it’s important to convey a very enticing, valuable offer on a call-to-action to better visitor-to-lead conversion.

10. Churn Rate

A metric that measures how many customers you retain and at what value. To calculate churn rate, take the number of customers you lost during a certain time frame, and divide that by the total number of customers you had at the very beginning of that time frame. (Don’t include any new sales from that time frame.)

For example, if a company had 500 customers at the beginning of January and only 450 customers at the end of January (discounting any customers that were closed in January), their customer churn rate would be: (500-450)/500 = 50/500 = 10%.

Churn rate is a significant metric primarily for recurring revenue companies. Regardless of your monthly revenue, if your average customer does not stick around long enough for you to at least break even on your customer acquisition costs, you’re in trouble.

11. Clickthrough Rate (CTR)

The percentage of your audience that advances (or clicks through) from one part of your website to the next step of your marketing campaign. As a mathematic equation, it’s the total number of clicks that your page or CTA receives divided by the number of opportunities that people had to click (ex: number of pageviews, emails sent, and so on).

12. Content

In relation to inbound marketing, content is a piece of information that exists for the purpose of being digested (not literally), engaged with, and shared. Content typically comes in the form of a blog, video, social media post, photo, slideshow, or podcast, although there are plenty of over types out there. From website traffic to lead conversion to customer marketing, content plays an indispensable role in a successful inbound marketing strategy.

13. Content Management System (CMS)

A web application designed to make it easy for non-technical users to create, edit, and manage a website. Helps users with content editing and more “behind-the-scenes” work like making content searchable and indexable, automatically generating navigation elements, keeping track of users and permissions, and more.

14. Context

If content is king, then context is queen. Serving up valuable content is important, but ensuring that it’s customized for the right audience is equally (if not more) important. As buyers become more in control of what information they digest (again, not literally), it’s important to deliver content that’s contextually relevant.

15. Conversion Rate

The percentage of people who completed a desired action on a single web page, such as filling out a form. Pages with high conversion rates are performing well, while pages with low conversion rates are performing poorly.

16. Cost-per-Lead (CPL)

The amount it costs your marketing organization to acquire a lead. This factors heavily into CAC (customer acquisition cost), and is a metric marketers should keep a keen eye on.

17. Customer Acquisition Cost (CAC)

Your total Sales and Marketing cost. To calculate CAC, follow these steps for a given time period (month, quarter, or year):

  1. Add up program or advertising spend + salaries + commissions + bonuses + overhead.
  2. Divide by the number of new customers in that time period.

For example, if you spend RM500,000 on Sales and Marketing in a given month and added 50 customers that same month, then your CAC was RM10,000 that month.

18. Customer Relationship Management (CRM)

A set of software programs that let companies keep track of everything they do with their existing and potential customers.

At the simplest level, CRM software lets you keep track of all the contact information for these customers. But CRM systems can do lots of other things, too, like tracking email, phone calls, faxes, and deals; sending personalized emails; scheduling appointments; and logging every instance of customer service and support. Some systems also incorporate feeds from social media such as Facebook, Twitter, LinkedIn, and others.

19. Dynamic Content

A way to display different messaging on your website based on the information you already know about the visitor. For example, you could use Smart CTAs so that first-time visitors will see a personalized CTA (perhaps with a top-of-the-funnel offer) and those already in your database see a different CTA (maybe for content that offers a little more information about your product or service).

20. Ebook

Ebooks are a common type of content that many marketers use, often to help generate leads. They are generally a more long-form content type than, say, blog posts, and go into in-depth detail on a subject.

21. Engagement Rate

A popular social media metric used to describe the amount of interaction — Likes, shares, comments — a piece of content receives. Interactions like these tell you that your messages are resonating with your fans and followers.

22. Hashtag

Hashtags are a way for you and your readers to interact with each other on social media and have conversations about a particular piece of content. They tie public conversations on Twitter, Facebook, and Instagram together into a single stream.

23. Inbound Marketing

Inbound marketing refers to marketing activities that draw visitors in, rather than marketers having to go out to get prospects’ attention. It’s all about earning the attention of customers, making the company easy to find online, and drawing customers to the website by producing interesting, helpful content. By aligning the content you publish with your customer’s interests, you naturally attract inbound traffic that you can then convert, close, and delight over time.

24. Key Performance Indicator (KPI)

A type of performance measurement companies use to evaluate an employee’s or an activity’s success. Marketers look at KPIs to track progress toward marketing goals, and successful marketers constantly evaluate their performance against industry standard metrics. Examples of KPIs include CAC (Customer Acquisition Cost), blog traffic sources, and homepage views. Choose KPIs that represent how your marketing and business are performing. 

25. Keyword

Sometimes referred to as “keyword phrases,” keywords are the topics that webpages get indexed for in search results by engines like Google, Yahoo, and Bing.

Picking keywords that you’ll optimize a webpage for is a two-part effort. First, you’ll want to ensure the keyword has significant search volume and is not too difficult to rank for. Then, you’ll want to ensure it aligns with your target audience

After deciding the appropriate keywords you want to rank for, you’ll then need to optimize the appropriate pages on your website using both on-page and off-page tactics.

26. Landing Page

A landing page is a website page containing a form that is used for lead generation. This page revolves around a marketing offer, such as an ebook or a webinar, and serves to capture visitor information in exchange for the valuable offer. Landing pages are the gatekeepers of the conversion path and are what separates a website visitor from becoming a lead.

A smart inbound marketer will create landing pages that appeal to different personae (plural for persona) at various stages of the buying process.

27. Lead

A person or company who’s shown interest in a product or service in some way, shape, or form. Perhaps they filled out a form, subscribed to a blog, or shared their contact information in exchange for a coupon.

Generating leads is a critical part of a prospect’s journey to becoming a customer, and it falls in between the second and third stages of the larger inbound marketing methodology, which you can see below.

Landing pages, forms, offers, and calls-to-action are just a few tools to help companies generate leads.

28. Lead Nurturing

Sometimes referred to as “drip marketing,” lead nurturing is the practice of developing a series of communications (emails, social media messages, etc.) that seek to qualify a lead, keep it engaged, and gradually push it down the sales funnel. Inbound marketing is all about delivering valuable content to the right audience — and lead nurturing helps foster this by providing contextually relevant information to a lead during different stages of the buying lifecycle.

29. Lifetime Value (LTV)

A prediction of the net profit attributed to the entire future relationship with a customer. To calculate LTV, follow these steps for a given time period:

  1. Take the revenue the customer paid you in that time period.
  2. Subtract from that number the gross margin.
  3. Divide by the estimated churn rate (aka cancellation rate) for that customer.

For example, if a customer pays you RM100,000 per year where your gross margin on the revenue is 70%, and that customer type is predicted to cancel at 16% per year, then the customer’s LTV is RM437,500.

30. Long-Tail Keyword

A long-tail keyword is a very targeted search phrase that contains three or more words. It often contains a head term, which is a more generic search term, plus one or two additional words that refine the search term. For example:

  • Head term: eating
  • Long-tail keywords: eating games online, eating costumes for kids, eating videos on YouTube

Long-tail keywords are more specific, which means visitors that land on your website from a long-tail search term are more qualified, and consequently, more likely to convert.

31. Mobile Optimization

Mobile optimization means designing and formatting your website so that it’s easy to read and navigate from a mobile device. This can be done by either creating a separate mobile website or incorporating responsive design in initial site layout. Google’s algorithm now rewards mobile-friendly websites, so if your site isn’t fully optimized for mobile devices, you will likely see a hit to your ranking on mobile searches.

32. On-Page Optimization

This type of SEO is based solely on a webpage and the various elements within the HTML (see “H” if you skipped here directly). Ensuring that key pieces of the specific page (content, title tag, URL, and image tags) include the desired keyword will help a page rank for that particular phrase.

33. Off-Page Optimization

This is the free-spirited cousin of on-page optimization. Off-page SEO refers to incoming links and other outside factors that impact how a webpage is indexed in search results. Factors like linking domains and even social media play a role in off-page optimization. The good news is that it’s powerful; the not so good news is that it’s mostly out of an inbound marketer’s control. The solution? Create useful, remarkable content and chances are people will share and link to it.

34. Page View

A request to load a single web page on the internet. Marketers use them to analyze their website and to see if any change on the webpage results in more or fewer page views.

35. Pay-per-Click (PPC)

The amount of money spent to get a digital advertisement clicked. Also an internet advertising model where advertisers pay a publisher (usually a search engine, social media site, or website owner) a certain amount of money every time their ad is clicked. For search engines, PPC ads display an advertisement when someone searches for a keyword that matches the advertiser’s keyword list, which they submit to the search engine ahead of time.

PPC ads are used to direct traffic to the advertiser’s website, and PPC is used to assess the cost effectiveness and profitability of your paid advertising campaigns.

There are two ways to pay for PPC ads:

  • Flat rate: where the advertiser and publisher agree on a fixed amount that will be paid for each click. Typically this happens when publishers have a fixed rate for PPC in different areas on their website.
  • Bid-based: where the advertiser competes against other advertisers in an advertising network. In this case, each advertiser sets a maximum spend to pay for a given ad spot, so the ad will stop appearing on a given website once that amount of money is spent. It also means that the more people that click on your ad, the lower PPC you’ll pay and vice versa.

36. PPC

PPC, (or Pay-Per-Click) is an advertising technique in which an advertiser puts an ad in an advertising venue (like Google AdWords or Facebook), and pays that venue each time a visitor clicks on the ad.

37. Qualified Lead

A contact that opted in to receive communication from your company, became educated about your product or service, and is interested in learning more. Marketing and Sales often have two different versions of qualified leads, so be sure to have conversations with your sales team to set expectations for the types of leads you plan to hand over.

38. Responsive Design

This is the practice of developing a website that adapts accordingly to how someone is viewing it. Instead of building a separate, distinct website for each specific device it could be viewed on, the site recognizes the device that your visitor is using and automatically generates a page that is responsive to the device the content is being viewed on — making websites always appear optimized for screens of any dimension.

39. Return on Investment (ROI)

A performance measure used to evaluate the efficiency and profitability of an investment, or to compare the efficiency and profitability of multiple investments. The formula for ROI is: (Gain from Investment minus Cost of Investment), all divided by (Cost of Investment). The result is expressed as a percentage or ratio. If ROI is negative, then that initiative is losing the company money. The calculation can vary depending on what you input for gains and costs.

Today, marketers want to measure the ROI on every tactic and channel they use. Many facets of marketing have pretty straightforward ROI calculations (like PPC), but others are more difficult

40. Search Engine Optimization (SEO)

The practice of enhancing where a webpage appears in search results. By adjusting a webpage’s on-page SEO elements and influencing off-page SEO factors, an inbound marketer can improve where a webpage appears in search engine results.

There are a ton of components to improving the SEO of your site pages. Search engines look for elements including title tags, keywords, image tags, internal link structure, and inbound links — and that’s just to name a few. Search engines also look at site structure and design, visitor behavior, and other external, off-site factors to determine how highly ranked your site should be in the search engine results pages.

41. Social Proof

Social proof refers to a psychological phenomenon in which people seek direction from those around them to determine how they are supposed to act or think in a given situation. In social media, social proof can be identified by the number of interactions a piece of content receives or the number of followers you have. The idea is that if others are sharing something or following someone, it must be good.

42. Unique Visitor

A person who visits a website more than once within a period of time. Marketers use this term in contrast with overall site visits to track the amount of traffic on their website. If only one person visits a webpage 30 times, then that web page has one UV and 30 total site visits.

43. URL

This is short for Uniform Resource Locator. I honestly didn’t know that before writing this definition. Basically, this is the address of a piece of information that can be found on the web such as a page, image, or document (ex. http://www.tiara.my). URLs are important for on-page SEO, as search engines scour the included text when mining for keywords. If a keyword you’re looking to get indexed for is in the URL, you’ll get awareness from search engines.

44. User Experience (UX)

The overall experience a customer has with a particular business, from their discovery and awareness of the brand all the way through their interaction, purchase, use, and even advocacy of that brand. To deliver an excellent customer experience, you have to think like a customer, or better, think about being the customer.

45. User Interface (UI)

A type of interface that allows users to control a software application or hardware device. A good user interface provides a user-friendly experience by allowing the user to interact with the software or hardware in an intuitive way. It includes a menu bar, toolbar, windows, buttons, and so on.

46. Viral Content

This term is used to describe a piece of content that has become wildly popular across the web through sharing. Oftentimes, folks don’t know a piece they’re creating will be viral until it actually does, which is usually unfortunate if it’s particularly embarrassing.

47. Website

A website is a set of interconnected webpages, usually including a homepage, generally located on the same server, and prepared and maintained as a collection of information by a person, group, or organization. An inbound marketer should structure a website like a dynamic, multi-dimensional entity that can be used to attract relevant website visitors, convert those visitors into leads, and close those leads into customers. Otherwise, it’s just a brochure — and let’s be honest — could you really use another brochure?

CONCLUSION

Have you learn something from this? Marketing is not just a simple execution or ideas. There’s actually terms of it that you need to understand. Some you might heard of it, but some might be the first to you. Hope this helps! And…

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