3 Marketing Management Terms You Need To Know

3 Marketing Management Terms You Need To Know
  • Opening Intro -

    Marketing can either make or break your business.

    When executed well, effective marketing can lead to an increase in new leads, higher brand engagement, and more conversions.

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Marketing can either make or break your business. When executed well, effective marketing can lead to an increase in new leads, higher brand engagement, and more conversions. While on the other hand, poor marketing efforts can lead to low customer retention and a weak brand image which can ultimately affect your sales.

Understanding these specific marketing management terms is the first step in planning your marketing strategy for your business. Once you have understood these key terms, it is essential to clearly define them in context of your business to create a well-defined guide to base your future marketing efforts and strategic decisions on.

The 3 key marketing management terms to know are:

1. Segmentation

The Harvard Business Review states, “For decades, marketers have segmented their target customers to get a read on who will buy a product or service.” Essentially, segmentation refers to the process of dividing the market into various groups.

For example – by using demographic and psychographic markers to identify the audience that matches best to what your business is offering.

Therefore, a company that intends to launch a new sports drink might segment their market after researching to identify that their product will sell the best to men and women between the ages of 18 to 28 who are interested in sports.

2. Competitor Analysis

This refers to a method by which businesses can aggregate data of their competitors to identify the Points of Parity (POPs) and Points of Difference (PODs).

Essentially by understanding what your competitors are doing, you can adopt best practices and accordingly make strategic marketing decisions, while also learning from their mistakes.

By identifying the similarities between you and your closest competitor, you can track the areas in which you can improve your current offering. While by determining the differences between you and your closest competitor you can pinpoint the areas in which you hold a competitive advantage, which can be your business’s Unique Selling Point (USP).

3. Positioning

Since we’ve already looked at how the competitor analysis is defined and used, it helps us to map out our position within our market better.

  1. To create a positioning map, you will need to draw an x-axis and a y-axis which intersects to form four quadrants. The values you assign to the two axes can vary according to your business. For example, you can choose one axis to have the value of price (high price vs. low price) and the other access to have the value of quality (high quality vs. low quality).
  2. Then conduct some more research on your competitors and start to plot where they lie on the map.
  3. The last step is to add in where you think your business’s position on the map to your competitors.
other valuable resources:

Conclusion

It’s important to be able to definitively answer questions regarding these terms in the context of your business.

Once you have created a solid foundation with these key terms and their details, you can use this information to identify the following:

  • whom to target for your next marketing campaign
  • how to help your customers differentiate your offering from your competitors and
  • how to use your brand voice and tone to communicate with your target audience effectively.

Help your friends, family, and colleagues to tweak their marketing strategies and build their businesses by sharing this article with them on your social channels such as Facebook and Twitter – they might thank you for the useful content!

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