MARKETING
35 essential marketing terms every founder should know
Be it your domain or not, understanding basic marketing terms & concepts is a must for every founder. Here’s the list of 35 essential ones.
In the journey of building and scaling a startup, mastering the fundamental language of marketing is crucial for reaching new audiences, driving traction, and achieving sustainable growth (or at least not getting lost in the process).
This glossary breaks down 35 essential marketing terms into four handy categories, with practical examples that show how each concept can be applied to accelerate your business growth.
Metrics
1. Abandonment rate
The percentage of users who leave a page without further interaction or abandon a cart mid-checkout.
2. Bounce rate
The percentage of visitors who exit a website after viewing only one page.
3. Churn rate
The percentage of customers who stop using a service, often viewed as the opposite of retention rate.
4. Click-through rate (CTR)
The percentage of people who click a link in an ad or email out of those who viewed it.
5. Customer acquisition cost (CAC)
The cost of acquiring a new customer, calculated by dividing total acquisition costs by the number of new customers.
6. Customer lifetime value (CLV)
The projected revenue a customer will generate for a business over their lifetime.
7. Cost per acquisition (CPA)
The amount paid for a specific action by a user, like a click, sign-up, or purchase.
8. Cost per lead (CPL)
The cost to acquire a new lead, calculated by dividing total campaign costs by the number of leads generated.
9. Engagement rate
A measure of active interaction with content, often on social media, such as likes, comments, and shares.
10. Retention rate
The percentage of customers who continue using a product or service over a set time, indicating customer loyalty.
Audience & strategy
1. Buyer persona
A research-based profile of a business’s ideal customer, detailing characteristics and preferences to help tailor marketing.
2. Inbound marketing
Attracting customers through valuable content and organic channels like social media, blogs, or SEO-optimized articles.
3. Lead magnet
Free resources like eBooks, trials, or guides offered to capture leads’ contact information.
4. Nurturing
Guiding leads through the sales funnel with tailored content and interaction at each stage.
5. Opt-in form
A form used to collect contact information from potential leads in exchange for resources or updates.
6. Outbound marketing
Directly reaching out to potential customers through ads, emails, or calls, often requiring paid campaigns.
7. Referral marketing
A program encouraging existing customers to refer new customers, often through incentives like discounts.
8. Segmentation
Dividing customers into groups based on common features for targeted marketing.
9. Thought leadership
Content that positions a brand or individual as an authority in its field, often through blog posts, articles, and expert insights.
Tools & techniques
1. A/B testing
Testing two content versions to see which performs better.
2. AdWords
Google’s pay-per-click ad platform for displaying ads on search results and affiliated sites.
3. Backlink
An inbound link from an external site that improves SEO by signaling relevance to search engines.
4. Content management system (CMS)
Software used to create, edit, and publish digital content.
5. Customer relationship management (CRM)
Software and practices to manage customer interactions, fostering long-term relationships.
6. Direct traffic
Visitors who arrive at a website directly, often via a typed URL or bookmark, rather than through a search engine or referral.
7. Heat map
A visual representation showing where users interact most on a webpage.
8. Marketing automation
Software that automates repetitive marketing tasks like email sequences, social media posts, and targeted messages.
9. Marketing funnel
A model outlining the stages of customer engagement from awareness to purchase.
Digital marketing essentials
1. Call to action (CTA)
A prompt encouraging the user to take a specific action, like “Sign up now” or “Learn more.”
2. Growth hacking
Low-cost strategies focused on rapid growth, often through viral marketing and social media.
3. Lead generation
The process of attracting and capturing interest in a product, aiming to turn prospects into customers.
4. Marketing key performance indicator (KPI)
Metrics that help evaluate the success of marketing strategies.
5. Search engine optimization (SEO)
Techniques to improve website ranking in search results.
6. Search engine marketing (SEM)
Paid ads that appear on search engine result pages, often targeting keywords to reach potential customers.
7. Unique selling proposition (USP)
A distinct feature or advantage that sets a brand or product apart from competitors.
Related posts
30 essential product terms every founder should know
Building a great product starts with speaking the language of it. Whether you’re a seasoned founder or just starting out, these 30 must-know terms will set you up for success.
Cash flow & burn management
90% of startups fail—not because of bad ideas, but because they run out of money. Proper handling of cash flow and burn management can help.