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.
B
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.
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.
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.
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.
C
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.
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.
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.
Churn
Churn is the percentage of customers that stop using your business during a given time frame.
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.
Co-branding
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.
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.
Competitive Analysis
Competitive analysis is the process of identifying competitors and evaluating their strategies in order to determine their weaknesses and strengths.
Competitive Differentiation
Competitive differentiation refers to how a company’s offering is distinct from its competitors’. It is based on aspects such as, but not limited to, an offering’s functionality, branding, and pricing.
Competitive Landscape
The competitive landscape is a valuable marketing tool that represents the current market for your product or service.
Continuous Improvement
Continuous Improvement — sometimes referred to as ‘Kaizen’ — is an ongoing effort to improve products or processes. It relies on a culture where all employees identify opportunities for enhancements and wastage reduction.
Conversion Rate
Conversion rate refers to the percentage of website visitors that complete a specific action.
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.
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.
D
E
F
Fatal 2% Rule
The Fatal 2% Rule states that if a company or venture can achieve 2% of total market share it will be successful, but failing to achieve 2% will be fatal.
First Mover Advantage
First-Mover Advantage refers to the competitive edge a business earns by being the first to launch with a certain product or service.
G
I
K
L
M
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.
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.
Market Segmentation
A market segmentation breaks down a company’s target audience by certain attributes, to allow more targeted marketing and product development.
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.
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.
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.
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.
N
O
OKR Roadmap
While OKRs and roadmaps share some common elements, they’re really quite different methods of tracking product development. But is there room for both?
Objectives and Key Results (OKR)
Objectives and Key Results, also known as OKR, is a goal-setting framework used in businesses to align individual performance with overall goals in a measurable way.
P
PERT chart
A PERT chart, short for Program Evaluation Review Technique, is a visual chart used to estimate the length of time it will take to complete a project.
Pageviews
Pageviews is the number of times an individual web page has been loaded or reloaded.
Payback Period
The payback period refers to the length of time a business expects to wait before the initial investments in a product or project are recovered.
Penetration Pricing Strategy
Penetration pricing refers to setting a low initial cost for a new product or service. Usually, this is done by businesses to gain market share quickly or get new customers to purchase.
Price Elasticity of Demand
Price elasticity of demand relates to the way in which demand for a product changes based on price adjustments. Certain products are inelastic, as a change in price leads to little or no change in demand.
Product Analytics
Product analytics is essential for developing a comprehensive understanding of how users engage with products. This feedback is often more accurate than other forms of user input as it tracks actual user behavior rather than relying on qualitative remarks.
Product Leadership
Product leadership refers to a cross-departmental approach to making an organization’s products a success. It is not one singular role but a collection of responsibilities shared by department leads, managers, and even C-suite employees.
Product Marketer
A Product Marketer is a marketer who specializes in bringing products to market. This means that they manage a product’s conception, positioning, advertising, and eventual release to market.
Product Mix
A product mix is the complete set of products or services offered by a business.
R
Retention Rate
Retention rate is the number of customers that continue to pay for a subscription-based product over a particular period. A high retention rate indicates that your customers are getting value.
Return Visitors
Return visitors are users who have visited a certain website before, in the last two years.
S
Strategic Marketing Management
Strategic marketing management is the process of implementing your business’ mission through specific and strategic processes in order to maximize on your current marketing plan.
Sales Forecast
A sales forecast is a business’s estimation of a product’s future sales. This helps companies make well-informed decisions related to resources, workforces, and more.
Seed Capital
Seed capital is a relatively small investment that contributed to a startup at the very earliest stage of the venture.
Setting Price
The first step to setting the price of your product or service is always to discover your baseline pricing.
Single Source of Truth
Single source of truth, or SSOT, is a concept generally used to make sure that all of the organization’s members rely on the same data for business decisions. Keywords: single source of truth
Success Factors
Success factors are all of the different internal and external influences which can impact the potential success of a business.
T
U
V
W
Building better products starts here
Join thousands of product managers and makers who already enjoy our newsletter. Get free tips and resources delivered directly to your inbox.
