Marketing and Sales: Key Concepts and Definitions

Visitors

The total number of people who visit a Facebook Page (or website) during a given time period. NOT page views.

Unique Visitors

The number of distinct individuals who visit a website during a given time period. Multiple visits by the same person count only once.

Page Views

The total number of times pages are viewed. One visitor can generate multiple page views.

Reach

The number of unique people who saw a piece of content.

Impressions

The total number of times content is displayed, including multiple views by the same person.

Subbranding

Combines a corporate or family brand with a new brand to distinguish one product line from another (Toyota → Lexus).

Family Branding

Using one brand name for all products (Apple, Samsung).

Individual Branding

Each product has its own unique brand name.

Generic Branding

Using no brand name or a very basic one.

Multiproduct Branding

Using one company name across several related products.

Social Commerce

Buying and selling products directly through social media platforms without leaving the app.

E-commerce

Buying and selling online through websites or digital platforms.

Showrooming

Examining a product in-store before purchasing it online.

Customization

Allowing customers to personalize a product.

Missionary Salesperson

Performs promotional activities and builds goodwill but usually does NOT take sales orders.

Sales Engineer

Provides technical expertise during the selling process.

Outside Order Getter

Travels to customers to actively obtain orders.

Inside Order Getter

Sells from the seller's place of business.

Outbound Telemarketer

Sells products over the telephone.

Trial Close

Tests whether the customer is ready to buy.

Assumptive Close

Acts as though the customer has already decided to buy.

Urgency Close

Encourages immediate purchase using limited-time offers or scarcity.

Sales Force Size Formula

Number of Salespeople = (Number of Customers × Call Frequency × Call Length)/(Available Selling Time)

Call Frequency

Number of sales calls required per customer each year.

Call Length

Time spent on each sales call.

Available Selling Time

Hours each salesperson has available annually for sales calls.

Product Repositioning

Changing a product's position in consumers' minds.

Reason for Repositioning: Competitor

Occurs when a competitor's strong market position hurts sales or market share.

Prospecting

Identifying potential customers.

Preapproach

Researching the prospect before contact.

Approach

Making first contact, building rapport, and establishing a positive relationship.

Presentation

Demonstrating how the product solves customer needs.

Closing

Asking for the sale.

Follow-up

Ensuring customer satisfaction after the sale.

Me-Too Innovation

A company copies a competitor's successful innovation.

Continuous Innovation

A minor improvement to an existing product with little consumer behavior change.

Dynamically Continuous Innovation

A significant improvement requiring moderate behavior change.

Discontinuous Innovation

A completely new product requiring major behavior changes.

Disruptive Innovation

An innovation that fundamentally changes an industry.

Spot Advertising

Unsold network TV advertising time sold locally at discounted prices.

Network Advertising

Commercials purchased directly through national TV networks.

Cable Advertising

Commercials on cable television channels.

Programmatic Advertising

Automated buying and selling of digital ad space.

Syndicated Programming

TV programs sold to individual stations rather than networks.

Primary Demand

Demand for an entire product category.

Selective Demand

Preference for one specific brand within a product category.

Derived Demand

Demand resulting from demand for another product.

Negative Demand

Consumers actively avoid the product.

Product Vitality Index (PVI)

The percentage of total company sales generated by new products.

Healthy PVI

20%-30%.

PVI Below 20%

Indicates declining new-product vitality.

Inventory Carrying Cost

The cost of storing inventory.

Lowest Inventory Carrying Cost

Hair salons (little physical inventory).

Highest Inventory Carrying Cost

Retailers and manufacturers.

Visitors vs Page Views

Number of pages viewed. Visitors = People.

Unique Visitor vs Visitor

Unique Visitor = Counts each person once. Visitor = Often total people during the period (depends on context).

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