Marketing Definitions

Marketing mix:

Marketing mix usually refers to McCarthy's '4 P's': Promotion, Place, Price and Product. Other words beginning with P (eg People and Process) are sometimes also included. Helps to explain the scope of marketing although very much an over-simplification.

Competitive Advantage / Competitive Edge.

The point of difference that gives your product a real advantage over its competitors. One of the key tasks in marketing. This might be a superior product in some way, or a greater range of product options, or the deliery time, or the back-up service, or any number of other attributes.

Market:

A group of people or organisations that share a need for your product. Not always as simple to define for your product as you might think. It is not uncommon for small business owners to be too 'ambitious' or 'non-specific' with the definition of their own market. This leads to a lack of focus and a great deal of the current marketing budget/effort being wasted.

Market segmentation:

The process of dividing the market into smaller (more specific) groups / sectors / segments that share one or more characteristics. The tendency is for inexperienced managers to segment the market by product type (ie Widget A, Widget B, Widget C). This can be a mistake as the most appropriate segmentation is by customer group. By segmenting the market in this way it becomes much more obvious where your business-building activities need to be focused.

Market share:

The percentage of the total market (or market sector) that is using your product.

Mission:

The central goal(s) of an organisation. This is then broken down further into 'Objectives', 'Strategies', and 'Tactics'.

Place:

The way in which a product or service is distributed, or where it is located.

Positioning:

How your product fits into the market, and how you want it to be perceived in relation to its competition. Not always as simple to define as you might think.

Product:

Your product and/or service. Not always as simple to define as you might think. If you manufacture a Widget, is the 'product' the widget itself or the excellent customer service you have developed to support it?

USP (Unique Selling Proposition)

What makes your product different from those of your competitors. What can you say about your product that cannot be said by your competitors?You should always strive to generate a point of difference between you and your competitors (and not necessarily price).