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Glossary: Product marketing & growth

Hand-picked product marketing terms, definitions, and frequently asked questions. Each product marketing term is defined and explained simply by our research team.

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Back End (In a Website)

The back end of a website is everything that goes on behind the scenes, from servers to databases — and much more.

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Brand Equity

Brand equity is the value of a brand in the eyes of the customer. A brand can have a positive or negative brand equity depending on how it is perceived, and this can have a positive or negative impact on a business’s commercial value.

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Brand Extension Strategy

A brand extension strategy is the use of one’s current brand name and brand recognition to enter into a new product class.

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Brand Recognition

Brand recognition is the degree to which a company’s brand is familiar, liked, and trusted by consumers. Good brand recognition offers many advantages to companies including helping to build and maintain healthy market share and profitability.

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Break-Even Point

A Break-Even Point is the point at which total revenue matches the total cost for a particular venture. At the Break-Even Point, an organization has recouped its costs but not yet made any profit.

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Business Plan

A business plan is a strategic document which details the business model and key tactics for a growing business or startup. It is especially important during the tricky first few years, or whilst seeking external investment.

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Cash Flow

Cash flow shows how much cash is moving in and out of your business every month. As they say: “Cash is King”. So being aware of your cash flow is crucial to the running of a successful business.

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Cash Flow Budget

Often referred to as a cash budget or a cash flow, the cash flow budget allows a company to keep on top of cash income and outgoings over time. 

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Channels of Distribution

Channels of Distribution (or a distribution channel) are channels of businesses or intermediaries which a product or service travels through before reaching the final customer.

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Churn is the percentage of customers that stop using your business during a given time frame.

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Click-Through Rate (CTR)

Click-through rate is the percentage of an advert or listing impressions that result in a user clicking through to the site.

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Co-branding is a form of partnership, where two companies or brands share their brand names, logos, etc., on one project, one product, or one piece of software.

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Competitive Advantage

Competitive advantage is what makes a customer choose your business over another one. By understanding, and promoting, a competitive advantage, companies can win a greater amount of market share.

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Competitive Analysis

Competitive analysis is the process of identifying competitors and evaluating their strategies in order to determine their weaknesses and strengths.

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Conversion Rate

Conversion rate refers to the percentage of website visitors that complete a specific action.

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Cost Of Goods Sold (COGS)

The Cost of Goods Sold (COGS) is how much it costs to produce a finished product for the market. Put simply: it is the cost of making the goods a company sells, including the cost of materials, production time and labor. 

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Cost of Sales

Cost of sales (also known as cost of goods sold) refers to the cost required to manufacture or purchase a product that is then sold to a customer.

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Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is a metric used to convey how much money a business needs to spend to win a new customer.

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Market Development Strategy

Market Development Strategy refers to a strategy in which companies introduce their product or solution to new audiences, outside of their current markets.

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Market Penetration Strategy

Market penetration strategy is used by companies or organizations to launch or grow their presence and customer base within one of their already existing markets, or an existing market where a similar product or offer already exists.

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Market Segmentation

A market segmentation breaks down a company’s target audience by certain attributes, to allow more targeted marketing and product development.

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Market Share

Market share is the percentage of a certain market that an individual company’s sales are responsible for. Market share is used to give you an idea of how large, powerful or important your business is within its particular sector.

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Marketing Audit

A Marketing Audit takes a comprehensive look at all strategies, processes, and tools of an organization’s marketing environment, and helps to develop successful ways of working in the future.

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Marketing Cost Analysis

A marketing cost analysis is a way of assessing the full costs associated with any new marketing campaign. It is designed to provide a comprehensive breakdown of all the costs associated with a new marketing campaign.

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Marketing Mix

The marketing mix is an umbrella term for all of the tactics or actions a company can employ to drive sales and increase awareness of its brand.

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Marketing Plan

A marketing plan is a document that defines a marketing strategy for a company in order to reach their targeted audience.

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Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is a vital element of any business that relies on a subscription model, and an incredibly important metric to allow subscription businesses to prosper. 

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