Deciphering Marketing Lingo for Small Business Owners
#1: Marketing lingo is all around us.
#2: New terms or concepts are defined in this article and practical applications are provided.
#3: This article will be helpful to entrepreneurs trying to decipher marketing lingo for their small business needs. If you're a marketing professional, this blog post will help you create meaningful content for your target audience!
On the surface, marketing can seem like an overwhelming topic and whole lot of jargon but it doesn't have to be that difficult - there's a lot of great resources online! With this article, I'll break down marketing terms and provide some practical examples and useful resources to help entrepreneurs better understand their field.
A lot of new terms and concepts will be defined as well as some practical applications. This article will help you decode some of the terminology used in marketing to help with your needs as an entrepreneur.
Note: This is a very long article; so, I have included links to resources that are relevant to the sections below (note: there are a few external links within this article).
#1: Marketing lingo is all around us!
The first item on our list is "marketing lingo" - marketing lingo is everywhere! There are thousands of sources for marketing information and more pop up every day but it's important to understand what you're reading.
It's easy to get caught up in the latest marketing buzzword and confuse words and phrases with each other - this can result in misinformation, lack of clarity, or just not knowing what you're talking about!
Below are some examples of marketing lingo with a brief definition to help cut through the clutter. I've provided links to resources that will help explain each term.
"Stand Alone" - Marketing terms that describe products or services that have all the necessary components required to appeal to customers who are not primarily interested in your product or service. These are products or services that tend to be used in different industries where selling your product/service won't be a high priority.
In other words, "stand-alone" products and services will often attract consumers who do not need your product but need something else. An example of a stand alone product is paper towels - you can use them for all your cleaning needs, but you don't necessarily need such a product to get the job done (a stand-alone substitute can be found at the hardware store instead).
A quick example: The most common stand alone food item that we use on airplanes is bottled water (more on this below).
"Peripheral" - Marketing terms that describe products and services that are ancillary to the main product/service and usually carries a lower price point. If a consumer is primarily interested in your product, then these are the ancillary things that they would purchase along with your primary product.
These products generally do not carry much value on their own, but rather add perceived value to a primary product. In other words, consumers feel as though the inclusion of these additional items will improve or provide more value for their initial purchase by taking something away (i.e., removing clutter) or making it easier or better in some way. Examples of peripheral products are may include seating, entertainment systems, and accessories.
A quick example: Peripheral photography equipment can be purchased to accompany your main camera system (which we call "pro" cameras).
"Add-On" - Marketing terms that describe products or services that are typically not necessary for another product, but are added as a second option. An add-on item is an option for a specific situation where the basic needs can be met by one product without the need for the additional item.
These products tend to be optional at a lower price point. While the additional product can be perceived as desirable (i.e., a bonus), it's not necessary to the product or service being provided. The goal behind add-on products or services is that they provide added value overall and not just be a side benefit (peripheral).
A quick example: A remote control can be an add-on item for your TV - many TVs come with remotes but if you want a specific remote for a specific situation like listening to music, it's an additional purchase.
"Added Value" - Marketing terms that describe products and services used in conjunction with another product to add perceived value. A typical example might be a protective case for a cell phone or some other electronic device. The product itself is not essential but additional items can improve or extend the life of your purchase.
Another term used to describe added value is convenience, as in adding convenience to your purchase by including an item that makes it easier or better in some way (carrying bag, protective case, carrying handle...etc.). The goal of added value is to offer some perceived value to a product or service.
A quick example: A protective case for your cell phone or portable music player is an example of an added value item. It's not necessarily required (making it peripheral) but it provides additional protection and gives you additional options as to how you use the device.
"Outlier" - Marketing terms that describe products and services that fall outside the primary marketing target - These products are often unique in some way and are targeted toward specific groups of consumers. An outlier product can be either stand-alone or peripheral, depending on its positioning.
The goal with outlier products is to position them away from your main product or service. Some examples of this are a "gourmet" hot dog stand at a baseball stadium, or the iPod Nano in a typical electronics store.
A quick example: A stand-alone outlier product might be the gourmet hot dog stand at the baseball stadium (i.e., not necessarily in the same category as other food stands). A peripheral outlier product might be a gourmet hot dog available at any vendor's stand in the same category as your standard ballpark fare (i.e., food).
Conclusion
There are tons of marketing terms and phrases out there. Understanding them and knowing how they relate to your products and services can help you avoid mistakes, better serve customers, and increase your bottom-line overall!
Using the below definition sheet will hopefully help you cut through some of the clutter.
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