Marketing Glossary

A framework created by Neil Borden and E. Jerome McCarthy that catalogs product‑marketing levers. These levers can be adjusted to improve positioning and influence customers. In advanced marketing, each of these is thoughtfully considered and iterated upon. The 4 Ps are:

Product — what you're selling

Price — what your product costs

Place — where your product is sold

Promotion — how your product is advertised

An evaluation to determine which of two—or, if multivariate, more—assets performs best in the marketplace. Assets might include promotions, ads, content, or copy. Marketers run multiple versions simultaneously, randomly determining which will cause users to take the desired action. Once testers acquire a critical mass of data, they determine a winner. Beware of either/or thinking: some assets have different strengths, so be thoughtful about what you measure and how.

A method for re‑engaging e‑commerce shoppers after they place items in their carts and then navigate away without purchasing. These shoppers are usually among your highest‑value leads. Retarget with urgency and, if needed, sweeten the deal with incentives.

See Account‑Based Marketing.

A B2B strategy in which you select a few high‑value organizations ("accounts") to target directly. In some cases, this can outperform wide‑net approaches (e.g., inbound marketing) that spend resources on many low‑value or low‑intent leads.

The process of moving prospects down the funnel—from impressions to leads to customers.

The funnel phase in which you first engage prospects and encourage them to enter the funnel.

See Artificial Intelligence.

A campaign‑financing metric that sets the maximum amount you should spend in a campaign. Spend as close to—but not above—this ceiling; spending far below it leaves opportunities on the table.

Exploiting the cognitive bias in which consumers judge value based on the first option presented (the "anchor"), e.g., listing a product at an inflated price and then putting it "on sale."

Technologies that simulate human intelligence, including systems built with machine‑learning models or logic‑based algorithms. Marketers use AI to create content, analyze data, optimize bids, and automate operations.

The evaluation of campaign touch‑points to determine how much each contributes to outcomes like lead generation or conversion. Accurate attribution helps optimize spend. Common models include First Click, Last Click, Linear, Position‑Based, and Time‑Decay.

A profitability metric expressing net profit as a percentage of total revenue. Calculated by dividing average net profit by average total revenue; useful when working out customer‑acquisition‑cost allowables.

The first stage of the buyer's journey—the top of the funnel—when prospects first learn about your offering. Brand marketing dominates here.

Companies that sell to other businesses. B2Bs generally have fewer customers, larger deal sizes, and more stakeholders per transaction than B2Cs.

Companies that sell directly to consumers. B2Cs generally have lower transaction values, higher volumes, and faster buying cycles than B2Bs.

Inbound links from other websites to yours. Search engines treat quality backlinks as votes of confidence, boosting authority and search rank.

Sales reps who focus on generating and qualifying leads at the top of the funnel rather than closing deals.

Promotes a brand's unique identity without necessarily pushing a direct CTA. Goals include mental availability, trust, and loyalty—making you the first choice when prospects are ready to buy.

Creative that mixes brand messaging with a performance CTA. They achieve both goals, though usually at lower intensity than pure brand or pure performance ads.

A monetary estimate of a brand's worth, factoring trust, mental availability, and preference over commodity alternatives.

An invisible one‑pixel image embedded in ads or pages to track exposure. Helps with frequency capping and sequential messaging.

The path a buyer takes from first impression to conversion, comprising Awareness, Consideration, and Decision stages.

Signals that a prospect is nearing purchase—e.g., requesting a quote, downloading a case study, or scheduling a demo.

Total marketing spend required to acquire a customer from first impression through sale.

A prompt that encourages immediate response—e.g., "Book a Demo," "Subscribe Now." Central to performance marketing.

A coordinated marketing effort with a unified objective, often spanning multiple assets, channels, and tactics.

The time it takes for a campaign's effectiveness to drop by 50%, allowing quicker read-outs on performance.

A state law regulating how companies handle Californians' personal data.

A medium or platform used to deliver marketing messages—social media, organic search, TV, direct mail, etc.

The ratio of clicks to impressions for an ad or email. High CTR signals engaging creative but doesn't guarantee conversions.

Total revenue an average customer generates during their relationship with your company.

A statistical range indicating the reliability of a metric; a narrow interval means high confidence.

Middle stage of the buyer's journey when prospects research and compare options.

Provides valuable information (blogs, videos, whitepapers) to attract and nurture prospects instead of overtly selling.

Turning a lead into a customer; the funnel phase in which leads take the final buying action.

Systematic process of identifying and fixing friction in the purchase journey to increase the percentage of visitors who convert.

The amount spent to convert a lead into a customer.

The amount spent to generate one click in a PPC model.

The amount spent to generate one qualified lead.

The cost to generate 1,000 ad impressions.

See Conversion Rate Optimization.

Attribution that measures contributions from multiple channels in a buyer's path to conversion.

Selling complementary products to existing customers post-purchase to lift CLV.

See Call to Action.

See Acquisition.

The percentage of leads who ultimately become customers.

The sum of interactions a customer has with your brand, from first awareness through post-purchase support.

A fictional profile representing an ideal buyer, built from research and customer data.

The process of uncovering customer needs, behaviors, and motivations through surveys, interviews, and analysis.

A company's ability to keep customers over time and generate repeat revenue.

See Customer Experience.

Dumping large amounts of raw data without analysis or actionable insight—term coined by Avinash Kaushik.

Introducing an asymmetrically dominated option to steer buyers toward a desired choice ("good-better-best" pricing).

Physical marketing collateral sent through postal mail—letters, postcards, dimensional mailers.

Calculating allowables using actual historic business data rather than projections.

Buying or selling goods and services over the internet via websites, apps, or marketplaces.

See Extra Share of Voice.

How much your share of voice exceeds your share of market—a predictor of future growth.

A framework—Entice, Enter, Engage, Exit, Extend—mapping CX design across the customer journey.

Retraining an existing AI model on specialized data so it performs a narrower task for your brand.

Model that assigns 100% credit for a conversion to the customer's first interaction.

Data collected directly from your customers—transaction history, site behavior, survey responses.

Presenting information to influence perception, leveraging cognitive biases like anchoring.

A framework that visualizes how impressions become prospects, leads, customers, and repeat customers.

Content requiring users to submit contact information before access—e.g., whitepapers, webinars, or reports.

EU regulation governing how companies handle personal data of EU citizens.

AI systems that create new content—text, images, or code—based on minimal prompts.

Delivering location-based marketing messages to devices within a virtual geographic boundary.

A cross-functional plan that outlines how a product or service will reach its target customers—from defining the ICP and value proposition to selecting channels, pricing, and launch tactics.

See Ideal Customer Profile.

A description of organizations or individuals most likely to deliver high CLV once acquired.

A single view of an ad or piece of content.

How many impressions it takes, on average, to generate one lead.

In PPC, the percentage of impressions your ads received versus the total available.

Attracts prospects through valuable content rather than push advertising.

The measurable improvement in a KPI attributable to a specific marketing activity.

Campaigns that deliver one unified message across multiple channels and media.

A network of connected devices that collect and exchange data—wearables, smart appliances, sensors.

See Internet of Things.

Automated phone system that routes calls via voice or keypad input.

Any metric used to gauge campaign performance—e.g., revenue, leads generated, CPL, conversion rate, or CLV. Once established, KPIs steer day-to-day decision-making via dashboards and analytic reporting.

Words and phrases prospects use when searching online. Integrating the right keywords into ads, SEO, and content improves visibility and traffic.

See Key Performance Indicators.

Attribution model assigning 100% credit for a conversion to the customer's final interaction. Simple to calculate but risks undervaluing earlier touch-points.

See Last Click Attribution.

Prospects who have provided contact info or otherwise signaled intent (e.g., demo request). They sit midway in the funnel.

Percentage of leads that convert into customers. A key efficiency metric used to calculate CPL allowables.

The process of attracting and capturing prospects to become leads via ads, referrals, events, gated content, etc.

Ranking prospects by likelihood to convert, assigning points based on firmographics, behavior, and engagement.

A spend-allocation model that sets data-driven budget ceilings ("allowables") for each funnel stage, preventing both underspend and overspend.

A budgeting methodology that sets stage-specific spend ceilings based on real-time performance data. By anchoring budgets to customer lifetime value and conversion economics, the LVF enables efficient scale while protecting profitability.

Model that gives equal credit to every touchpoint leading to conversion.

A distribution where values spike briefly, drop rapidly, then taper off. Describes CLV distribution and campaign half-life.

Incentive programs that reward repeat purchases (discounts, perks), boosting CLV but carrying cost-risk if poorly designed.

See Lifetime Value Framework.

A subset of AI where algorithms learn patterns from data to make predictions or decisions, powering personalization, attribution, and ad bidding.

Investigation of target markets via surveys, focus groups, and data analysis to inform positioning and creative.

The combination of channels used in an integrated campaign; refined continually based on performance data.

Leads that meet predefined criteria for fit and intent, making them prime candidates for sales hand-off.

Software platforms that support marketing functions—channel management, analytics, automation, etc.

Likelihood that a buyer recalls and considers your brand at purchase time, driven by repeated exposure and consistent messaging.

A low-stakes affirmative (e.g., agreeing to a small request) used to build momentum toward conversion.

The extent to which a brand is top-of-mind relative to competitors.

See Integrated Campaigns.

Performance marketing executed across multiple channels; see Multi-Channel Campaigns.

See Net Dollar Retention.

Percentage of recurring revenue retained from existing customers year-over-year, including upsells, cross-sells, and renewals.

AI architecture inspired by the human brain; forms the backbone of deep-learning models used in image recognition, NLP, and predictive analytics.

A series of communications that build trust among leads by providing educational content without hard sells, priming prospects for purchase.

The single KPI that best captures the core value your product delivers to customers; used to align teams and prioritize initiatives.

Hyper-targeted messaging tailored to an individual consumer's needs and behaviors, enabled by big data and automation.

See Out-of-Box Experience.

No-cost tactics that earn attention—SEO, social posts, email newsletters, user-generated content—rather than paid placements.

Methodology that pushes unsolicited messages—cold calls, direct mail, tradeshows—to reach prospects beyond inbound's pull.

Customer's initial unboxing and setup experience; crucial for first impressions and long-term loyalty.

Any message you pay to distribute—PPC ads, sponsored content, TV spots, billboards, etc.—to amplify reach quickly.

Digital ad model where advertisers pay only when users click their ads. See Cost per Click.

Monetization tool that restricts digital content to paying subscribers.

Tactic focused on driving measurable, immediate actions (leads, sales) through data-driven optimization.

Actual, real-time KPIs that reflect current performance, used for spend decisions; contrast with Projection Metrics.

See One-to-One Marketing.

Model assigning 40% credit each to first and last interactions, splitting the remaining 20% among mid-funnel touches.

Funnel phase after purchase focused on retention, upsells, cross-sells, and renewals to maximize CLV.

Using data and ML to forecast future behaviors—buying patterns, churn—guiding segmentation and spend.

Investment into private companies in exchange for majority ownership, often with aggressive growth mandates.

Condition where a strong market need aligns with a product that satisfies that need, enabling scalable growth.

A business strategy where the product itself drives acquisition, expansion, and retention—leveraging in-app experiences, freemium tiers, and viral loops to fuel growth.

Software-driven automation of media buying, ad serving, personalization, and analysis.

Capturing prospect data in stages via multiple gated-content interactions, building trust and richer profiles over time.

Hypothetical future KPIs derived from performance data to inform strategic planning; complement Performance Metrics.

AI models scoring individuals on the likelihood of taking a specific action (purchase, churn), enabling personalized allowables.

Qualified potential customers who have shown initial interest but not yet provided lead-level engagement.

Signals indicating a prospect intends to buy soon; informs targeting and messaging priority.

Process of vetting leads for readiness, budget, need, and authority to ensure conversion efforts focus on high-probability targets.

Re-engaging previous prospects, leads, or customers via any channel to pull them back into the funnel; Retargeting is a digital subset.

Extending an existing customer's subscription or contract—key for sustaining recurring revenue and CLV.

Software that delivers real-time campaign data and insights, breaking silos and speeding decisions.

Digital subset of remarketing that shows ads to users who previously visited your site or engaged with your content.

Your ability to maintain customer relationships and revenue over time; high retention boosts CLV and NDR.

Profitability metric calculated as net profit divided by total spend.

Income generated from business operations; a primary indicator of campaign success (though not the only one).

See Return on Investment.

Time between a prospect's first engagement and their conversion; longer in B2B than B2C.

Sustained flat or declining sales despite continued marketing investment, often requiring advanced tactics to overcome.

Leads vetted by sales as ready for direct conversion efforts; typically pre-qualified by marketing (MQLs) first.

Organic strategies—keyword integration, quality backlinks, content libraries—for improving search-results visibility.

Another company's first-party data shared or sold to you; usually more reliable than third-party data.

Grouping prospects by shared attributes (budget, industry, behavior) to enable precise targeting and personalization.

AI-driven evaluation of language to gauge attitudes toward brands or issues—commonly applied to social media listening.

See Search Engine Optimization.

Listings displayed by search engines in response to a query; higher positions drive more clicks.

Your percentage of category sales; growing SOM often requires boosting share of voice.

Your percentage of messaging in a category (ad spend, media mentions, impressions); exceeding SOM predicts growth.

Companies with fewer employees and lower revenue than enterprises—often underdogs competing against larger budgets.

See Small and Midsize Business.

Tools that analyze social conversations for mentions, sentiment, and trends, informing strategy and damage control.

Third-party validation (testimonials, reviews) that builds trust more effectively than brand-generated claims.

See Share of Market.

See Share of Voice.

See Sales Qualified Leads.

Kahneman's taxonomy: System 1 is fast, intuitive, emotional (targeted by brand ads); System 2 is slow, logical (targeted by content and performance marketing).

The slow, logical, deliberate thinking process in Kahneman's taxonomy, targeted by content and performance marketing.

Total revenue opportunity if you sold to every possible buyer in your category; indicates scale potential.

See Total Addressable Market.

Consumer data collected by external brokers and sold to marketers; becoming less reliable as regulations tighten.

Model that weights channel credit based on proximity to conversion—more weight to later touches.

Selling higher-tier or add-on products to existing customers post-purchase, boosting CLV; akin to cross-selling and renewals.

See Venture Capital.

Investment in startups or growth-stage firms in exchange for minority stakes; profits realized at liquidity events.

See Voice of the Customer.

Direct feedback from customers via surveys, interviews, and reviews; powerful for product improvement and social proof.