Search Engine Optimization, Keyword Planning, Grassroots Marketing, OOH Media…Did you ever got lost in a jungle of overly-technical terms? The world of Marketing offers many fancy terms, I would like to explain them to you in a concise manner.
My name is Leon, I am Content Marketer at Watersky Digital and I’ve faced those exact difficulties when starting my career in Marketing. My studies mainly taught me about the theoretical background of those terms. What I missed were practical examples and the understanding of what exactly the goals of the various marketing concepts are. Fortunately, I soon met knowledgeable people who shared valuable insights with me and I myself made practical experiences with those concepts.
I would be happy, if my explanation of the key terms will provide you a helpful overview. But first, let’s see what is out there:
Before we start digging into the specific terms of marketing: What is marketing?
Firstly, we consider it as the process of promoting or communicating about a company, brand, product or service through the use of various media. Those who heard of the “4Ps” know that the determination of the price, the location of sale (place) and products need to be included as well.
You see that the definition of marketing is quite broad, so let’s clear the air by establishing a glossary about 20 of the most useful terms.
- What: Marketing Activities of a Business aimed at other businesses. The clients could range from partners, affiliates to sponsors or industry regulators.
- Goal: Build a better business relationship with your supplier, seller or buyer.
- Example: A food manufacturer provides its client, a grocery store, subsidies on its products in order to strengthen the relationship and ultimately reach consumers (see “B2C”) more effectively.
Magazines rank among typical forms of B2B advertisements.
- What: Marketing activities of a Business aimed directly at the end consumer.
- Goal: Generate awareness, interest, desire and provoke action among end consumers. -> For more information, consult our article regarding the digital purchase funnel.
- Examples: Most ads we encounter on TV, like a shampoo commercial, are typical examples of B2C Marketing. Another example would be price discounts on a company’s products.
- What: Creation and sharing of online content without directly promoting a brand or a product. This content could range from videos and blog articles to social media posts and newsletters.
- Goal: Generate interest in your products or services with less risk of being perceived as intrusive. Also, you can strengthen your image as being an expert in your segment.
- Example: A online marketing consultancy is publishing a marketing glossary on its website and social media channels.
CPS (Cost per click)
- What: A payment term used when purchasing online ads. Every time a user actually clicks on an ad the promoting company needs to pay a fee -> cost per click.
- Goal: CPC is especially useful when you are selling a niche product or luxury good since the costs are per click and not per conversion.
- Example: A perfume manufacturer is placing an ad on Facebook, paying with CPC.
CPM (Cost per thousand)
- What: Another payment term used when purchasing online ads. For every 1000 impressions generated by the ad, the promoting company needs to pay a fee -> cost per thousand.
- Goal: CPM, in contrast to CPC, is particularly recommended when you want to generate awareness about a new product.
- Example: A skin care company promotes its new face cream with an ad on Amazon, paying with CPM.
Digital Marketing / Online Marketing
- What: All marketing and promotional activities carried out online. It could range from display ads, Google AdWords, programmatic marketing, social media marketing, online community management to chatbots, website maintenance, web content development, blogging as well as influencer and email marketing.
- Goal: Integrate the customer into and accompany him through the digital purchase funnel. Read more about this in our article.
- Example: A electronics company generates awareness on its new speakers via Facebook posts. Further, it awakes the interest and desires of consumers by offering discounts on Amazon. After the purchase, it offers online support in regards to the product on its website through chatbots.
- What: A measurement of how many users engage with the content via clicks, likes, shares or comments.
- Goal: Extend the metrics from simply considering views to the actual engagement to e.g. improve the assessment of the ads performance.
- Example: An ad can be viewed by 1000 people from which only 12 may actually like it, click on a link or leave a comment.
- What: Often referred to as “Below the Line”, this form of marketing uses more niche techniques. It covers inter alia: brochures, coupons, flyers, word-of-mouth, review or comments posting on social media, contests or smaller OOH media.
- Goal: Reach smaller, more targeted groups of customers by, possibly, being more cost effective than using e.g. TV campaigns.
- Example: A local juice shop is distributing brochures to the locals around instead of investing in a TV commercial.
- What: Named after the Guerrilla warfare, it refers to marketing activities in divergent forms that pique public interest without investing on mass media.
- Goal: Create innovative promotions to hit the headlines and gain maximum awareness.
- Example: McDonalds is using a crosswalk to advertise its fries in a creative way. (see picture)
Crosswalk advertising by McDonald in Zurich, Switzerland
- What: Number of times your content or ad appears on users’ screens. This numbers might be large since they include duplicate views.
- Goal: Measure the visibility of your content or ads on different channels to analyze their performance.
- Example: Coca-Cola is posting its newest Christmas commercial on various channels. Facebook’s statics show 500.000 impressions on day one. Instagram exceeds with even 1,5 million impressions.
Integrated / Omnichannel Marketing Strategy
- What: Approach of communicating a single, unified message amongst all marketing channels.
- Goal: Establish a clear brand and company identity and let your content reach prospects via all channels.
- Example: A food company launches a new, highly ecological and vegan product. Its promotion will be on TV, in magazines on social media etc. All ads will have the same overall look and feel and convey the same message.
- What: Precise determination of the terms that customers might search for. Those terms should then be used when producing content or ads. It is strongly connected to SEA, SEM and SEO.
- Goal: Let your content and ads show up on the appropriate search.
- Example: Apple is establishing its keywords simplicity, practicality, user-friendly as well as design, innovation and technology for its newest iPhone. They are used in all content and ads produced.
- What: Out-of-Home media is a collective term describing all types of media prospects can see outside of home – in public. It could e.g. include billboards, ads on buses or digital screens in elevators.
- Goal: Gain awareness and interest in your product outside of your prospects homes.
- Example: Billboards are often used by big companies to promote their latest products (see picture)
Out of home advertisements in the streets of New York City
POP / POS Displays
- What: You can see Point of Purchase or Point of Sales displays in retail, such displays in a grocery store. A companies POP strategy could e.g. deal with the shelf placement of its products or strikingly arranged products.
- Goal: Generate sales by attracting the potential consumer directly at the point of purchase.
- Example: Johnson & Johnson uses visually appealing shelfs to promote it’s products in store (see picture).
Johnson & Johnsons Multi-Brand Marketing Wall (credits: Trendhunter)
- What: The use of Artificial Intelligence or machines to automate and optimize the purchase of Keyword or AdWords via a bidding system.
- Goal: Minimize human capacity needed on SEA or keyword buying activity and reach the “optimal” bidding price.
- Example: O2 adapted its mobile ad based on mobile usage data, like device type and location, and thereby achieved 128% more impressions. Link
- What: In the context of Marketing, Promotions are considered as sales offer such as discounts. They could, for example, be seasonal, annual/semi-annual or in the course of a product launch
- Goal: Give price-related incentives to customers to buy your product.
- Example: A clothing brand offers discounts on its winter clothes in December.
Public Relations (PR)
- What: Also known as media relations, PR refers to all promotional activities through the press or media outlets. Important: The promoting company does not buy advertising but engages with the media through a particular spin or story. It covers press conferences and events as well as press releases in magazines etc.
- Goal: Promotion of your company, brand or products without imposing the product itself. Good public relations strengthen the company’s image overall.
- Example: SpaceX sends a Tesla into Outer Space. The announcement is thoroughly posted on social media and various press channels. Link
- What: Measurement of each person that has been exposed to the ad across all mediums and channels. Important: Unlike impressions it only counts unique views.
- Goal: Give a more precise picture of campaigns or ads performance.
- Example: In the previous example, Coca-Cola gained 1,5 million impressions via Instagram. From those only 1,25 million are unique and counted as “reach”.
Search Engine Marketing: SEO & SEA
- What: Search Engine Marketing includes promotion related to online search. It covers Search Engine Optimization (SEO) as well as Search Engine Advertisement (SEA).
- Goal: Gain visibility of your website, products and offers within the search engine. The first 3 placements usually get 85 % of clicks in average.
- Example: A small service provider seeks to get more leads on its website. It therefore conducts SEO by optimizing its website texts and publishing more content. Finally it decides to use SEA by placing ads on Google’s search on specific search terms.
Social Media Marketing
- What: Marketing activities that target social networks and applications.
- Goal: Goals of SMM could include targeting customers, maintaining customer relation and gaining insights about your brand image online.
- Example: A car manufacturer is using Facebook, Instagram, Twitter, Snapchat and even Pinterest to promote its newest car. In return customers can get into contact with the firm and the manufacturer get useful insights about the customers perception of the new product.
I hope this glossary helped you extending your understanding of the key terms in marketing and look forward to talk to you next time!