Starting out in the marketing world can be overwhelming, especially when we use lingo like “funnel” and “flywheel”. To give you a bit of a taste, we’ve gathered 10 marketing terms you should know when entering the field. Although random, these terms will help you become acclimated to the field of marketing, whether you’re just starting your career or preparing for a career change.
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Let’s start out easy. Digital marketing, by definition, is the promotion of brands to connect with their audience using the internet and other forms of digital products and communications. For example, Made by Chapter is a digital marketing and creative agency.
Brand positioning is the process of getting your brand in the customer’s head. Some describe it as how much real estate your company owns in the customer’s mind. It sounds strange, but think of it like Coca-Cola or Kleenex; where the brand is so ingrained in your mind that you now call the product by the name of the brand. This is the point that we’d all like to get to as a brand, right?
Drawing in customers that are relevant to your brand and also who find your brand relevant is important, and that’s what inbound marketing is. Rather than blasting your product or service to the masses, inbound marketing focuses on drawing in the customers in your niche, who you know will be interested in your products. This is done through SEO, blogs and social media, rather than an advertisement on a Black Cab, for example.
The funnel is a bit outdated, but necessary to know in order to learn the next one. The funnel is a representation of the customer’s buyer journey. In short, leads start at the top of the funnel and become customers at the bottom of the funnel after making a purchase. The funnel shows customers as an afterthought. However…
…Yes, you read that right. It’s a newer term, introduced in 2018. Sounds funny, but it’s actually quite important. It’s a play off of the funnel—a more updated version. The Flywheel sees customers at the centre of the journey, not at the end. Revolving around the customers are marketing, sales and service. With this model, a brand is more focused on its customers.
Word of mouth marketing (WoM)
Every company’s dream. Once you get your product or service into the hands of the right customers, you can rely a great deal on Word of Mouth marketing. This is simply when customers spread the word to others about your product or service. Free marketing? We’re in.
Customer acquisition cost
Now into more of the metrics-side of things, customer acquisition cost is how much it costs your company to turn a lead to a customer. If you’re more of a math person, think about it this way:
total amount spent on sales and marketing
customer acquisition cost = —————————————————
number of customers during that period
CMS (content management system)
Your CMS is, you guessed it, where you manage your content, but specifically from your website. Your CMS might be WordPress, HubSpot, SquareSpace or GoDaddy, depending on your budget and business needs. You can create, design, edit, manage and track your web content and performance.
Want your customers to keep coming back for more? That’s everyone’s goal anyway, and that’s exactly what customer retention is. Components like customer support and overall experience contribute to customer retention.
This is your specific plan about how you’ll present your product or service to the target market while ensuring you emphasize your product or service’s unique value proposition. What is your company’s competitive advantage? What about your product will make customers want to buy? This is all included in your GTM strategy.
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