A business with great ideas, goals, execution, team, KPIs, etc and not so good marketing strategy can’t go a long way. History has it when businesses are not able to market their services and products properly, they face major problems.
Marketing is defined as the action or business of promoting and selling products or services which includes market research and advertising.
It also focuses on creating a relationship with customers and satisfying him. With its customer-centric approach, marketing is one of the premier components of business management.
The four P’s of marketing are- Product, Place, Price, and Promotion.
Product for item/service you intends to sell, Price for how much you will sell the product for, Place for the distribution of the product and promotion for the integrated marketing campaign strategy.
Once, you have a good marketing strategy in place with a clear understanding of the funnel and the customer journey your business will speak for itself.
The ten marketing terms you should know about to drive sales and attain high ROI are:
1. B2B (Business-to-Business)
Business to business also called B to B or B2B, is an exchange of services, products or data between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. B2B refers to the business relationships between companies, rather than between a company and individual consumers.
Example of B2B is Indiamart where small businesses or manufactures have the liberty to buy products from their platform and further sell it to the customers.
2. B2C (Business-to-Consumer)
Business to consumer (B2C) refers to the transactions conducted directly between a business and consumers who are the end-users of its products or services.
The most common example of B2C is Flipkart, Amazon, Big Basket and all other online stores where the customer directly interacts with the business to make a purchase.
3. Buyer Persona
A buyer persona tells you what prospective customers are thinking, doing and behaving as they interact with the products and services offered by your business. By creating an ideal buyer persona that justifies your business goals, you can easily target the right and potential audience.
With a good buyer persona, you can understand your audience better, create compelling content for every purchase funnel level, find effective guest blogging opportunities, and develop a better overall marketing strategy.
4. Bounce Rate
Bounce rate is a metric that measures the percentage of people who land on your website and leave immediately without taking any further action. A user bounces from your website when he doesn’t find the things that he expected for, found the content irrelevant or had a poor experience with the landing page.
A bounce rate in the range of 26 to 40 percent is excellent. 41 to 55 percent is average. 56 to 70 percent is higher than average, but may not be cause for alarm depending on the website. Anything over 70 percent is disappointing.
5. Call-to-Action
A call to action or CTA is a marketing term designed to get an immediate response from the person reading or hearing it. It is used in businesses as part of a marketing strategy to get your target market to respond by taking an action. It’s generally used at the end, or sometimes throughout to let customers know what to do next if they’re interested in what you offer.
6. Clickthrough Rate (CTR)
Clickthrough rate or CTR is a metric that measures the number of clicks advertisers receive on their ads per number of impressions. It is the ratio of users who click on a specific link to the number of total users who view a page, email or advertisement.
The average click-through rate for AdWords paid search ads is about 2%. Anything over 2% can be considered an above average CTR.
7. CAN-SPAM
CAN-SPAM is the law that sets rules for commercial email, establishes requirements for commercial messages, gives recipients the right to have you stop emailing them, and spells out tough penalties for violation.
The main requirement of CAN-SPAM is-
- Avoid usage of false or misleading header information
- Avoid usage of deceptive subject lines
- Identify the message as an ad
- Tell recipients where you’re located
- Tell recipients how to unsubscribe from your email list
- Honor opt-out requests promptly
- Monitor what others are doing on your behalf
8. Lifetime Value (LTV)
Customer Lifetime Value (CLV) or Lifetime Value (LTV) is a key metric, that illustrates a prediction of the net profit of an entire future relationship with a customer in marketing or E-commerce. It will help you to decide the advertisement spend and take the right decision.
To calculate LTV, first find the average purchase value, and then subtract average purchase frequency rate from that number and customer value will be obtained. After calculating average customer lifespan, you can multiply that by customer value and determine customer lifetime value.
9. Lead
In marketing, lead is an individual or an organization that marketers can trail. The marketers capture lead’s contact information like phone number, email or social media account. If marketers nurture a lead and get it interested in a sales conversation, then the lead gets converted.
The leads must have specific demographics, geographies, and behaviors common to your ideal lead persona. Lead generation channels are also an important part of attaining a lead. The definition of lead and lead generation differs from business to business.
For instance, a PPC campaign might get you more leads matching your customer persona. Whereas, for some other businesses, LinkedIn might be the best platform.
10. Traffic
Traffic or web traffic is the amount of data sent and received by visitors on your website. When a user visits your website, their device communicates with your website’s server. The server, then, transmits web file to user browsers where it is assembled and formed into a piece with graphics and text. Every file sent represents a single ‘hit.’
By analyzing the website traffic you can understand the revenue generating sources and allocate your budget accordingly.
Conclusion
There are many other marketing terms that you should know of for generating profit but these are the ones you can’t miss out on. I’m sure by keeping a track of these metrics your business will show you the result that you wish for.
Let me know, what other terms you think should be added it this list.
