10 Key Marketing Terms That You Must Know to Thrive in the Industry

Digital marketing sits on the top of every company’s bucket list if they are trying to establish their footing in the online market. Marketing is no longer an option but a necessity to take businesses to the next level.

Proper digital marketing strategies can bring in growth and ROI at the speed of light. If you are a marketer, you’d know what it means. However, newbies can understand this by simply looking at the last two years. The global pandemic changed the results of marketing, advertising, and promotions, forcing the brands to rethink their current and future campaigns.

The statistics show that the market size of global online shopping had hit the four trillion mark in 2020. In the United States, experts expect about 300 million online shoppers by 2023. Looking at these numbers, it is understandable that in marketing, there’s no certainty what the future would look like!

Nobody could have predicted how 2020 would turn the marketing world. Those who planned out their strategies ahead of the year found themselves starting from scratch after scraping out an entire year’s plan.

The global health emergency, COVID-19, increased the demand for creativity, innovation, and competition than ever before, and businesses came up with aggressive marketing practices.

As most companies around the world have embraced the digital marketing strategy to connect their business to the customers, the new marketers need to remain up-to-date with marketing terms, which they may have to deal with each day.

Top 10 Important Marketing Terms to Remember

Keeping up with the changes in marketing isn’t easy. However, to thrive in this fast-paced world, it’s crucial to stay ahead by maintaining relevancy with the audience.

Besides honing creative skills, marketing professionals need to stay updated with the ever-evolving marketing landscape. Getting consumer attention nowadays requires assimilating with the emerging trends.

Before understanding and practicing the marketing techniques, familiarizing with the marketing jargon would be beneficial.

Various terms add up into the marketing dictionary, and it is easier to miss out or misinterpret some. So, here’s a list of terms you’d want to familiarize yourself with to thrive in the industry.

1. Analytics

Analytics is one of the everyday words you’d hear in the marketing industry. It helps track and examine the success of a campaign. For example, most businesses use Google Analytics to learn about the people visiting their websites. With Google Analytics, one can find out the visitor’s age, gender, how they came to your website, and where does one reside. These details help in converting them into customers.

2. Buyers Persona

Representation of semi-fictional characters as your ideal customers based on your current customer data is buyers persona. It doesn’t refer to a real person but tells a lot about the potential customer’s behavioral traits, demographic information, shopping interests, and psychology. These details help marketers understand the influence people have within the business.

3. Conversion Rate

In marketing, conversion means converting customers into buyers. Small conversions keep taking place along the way and tracking the progress help make better decisions for the brand. When customers take action, whether it is opening an email, filling out a survey, or making a purchase, all of it is considered to be a conversion.

4. Customer Acquisition Cost (CAC)

Customer acquisition and customer retention are what marketing is all about.

Customer Acquisition Cost (CAC) helps calculate the average cost of acquiring a customer. The number defines the profitability of your business model.

CAC is calculated using the following formula:

Sales and marketing expenses

_____________________________

Total number of customers

5. Customer Lifetime Value (CLV)

To thrive in the industry, knowing the Customer Lifetime Value (CLV) is important. CLV tells how much revenue a customer generates for your company over time.

There are various ways to calculate CLV, and the simplest one is:

The average purchase cost × Frequency of purchases × Consumer lifespan

6. Cost Per Lead (CPL)

Cost Per Lead (CPL) or online lead generation depicts the amount spent acquiring sign-ups from new customers. CPL is commonly used in paid advertising. It can be calculated as:

Total marketing expenditure

_____________________________

Total number of new leads

CPL helps measure the significance of the marketing campaigns.

7. Content Management System (CMS)

A software, Content Management System (CMS), allows you to create and publish the content. Moreover, it helps in tracking and managing the performance of the content on the website. WordPress, Squarespace, Magenta, and HubSpot are some of the CMS software.

8. Go-to-Market (GTM) Strategy

The challenge today is that the buyers already have all the required information available online to make a decision. So, companies require a concrete action plan, like a Go-to-Market (GTM) strategy. The purpose of this strategy is to design a plan that would convince the customers to buy the products.

The GTM strategy suits the requirement of B2B and B2C businesses. Right from designing the launch to the end goal of the launch product, it is quite useful in today’s marketing scenario.

9. Return on Investment (ROI)

You invest in something to make the most of it. In marketing, you invest to earn some of your money back, which is what Return on Investment (ROI) means. You can calculate ROI:

(Net Profit / Cost of Investment) x 100

As a marketer, you should revisit the goals each month, track the activities, including the recent failures and successes. It is essential to make sure that your campaigns deliver ROI.

10. Word-of-Mouth Marketing (WOM)

Master the most valuable form of marketing, Word-of-Mouth Marketing (WOM). Here, mainly social influencers create awareness about your product or service, mentioning how they have benefitted from it. WOM helps in driving sales for your business

One common example could be Netflix whose tagline “Netflix and chill” was popularized by various Netflix users.

In Conclusion

Nowadays, marketing isn’t limited to advertising and selling products, instead, it’s about attracting potential customers to generate leads.

Marketing, as you know, is constantly evolving where new marketers may need help to understand its various levels. Experienced marketing professionals at B3NET Inc., walk the extra mile, helping the new marketers and the business owners with the best-proven marketing strategies.

However, experts suggest that the new marketers should firstly be able to use digital marketing terms fluently. The terms mentioned above have been in the industry for quite some time.

While memorizing the list has its benefits, the knowledge behind each of them holds more importance. Knowing these terms makes it easier to communicate once you are familiar. It opens up possibilities for you to go ahead and implement various techniques to gain customers, generate ROI, and stand out in the industry!