By

Simon Hazeldine

Overwhelmed by sales and marketing jargon? Look no further! This comprehensive glossary covers the most popular terms and acronyms in the world of sales and marketing. Whether you’re a seasoned professional or just starting out, this guide will help you navigate the complex language of the industry with ease. From customer acquisition to ROI, this glossary has got you covered.

If you have any terminology that you think should be added then please let us know!

Part 1 is here covering A to D

Part 2 is here covering E to L

This is part 3 covering M to P

Part 4 is here covering Q to S

Part 5 is here covering T to Z

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Market-Based Pricing
Market-based pricing is a pricing strategy that sets the price of a product or service based on current market conditions, including competitor pricing, supply and demand, and perceived value. This approach ensures that prices are competitive and reflective of what customers are willing to pay in the market.

Market Development
Market development is a growth strategy that involves expanding into new markets with existing products or services. This can include entering new geographic regions, targeting new customer segments, or exploring different distribution channels. The goal is to increase sales by reaching new audiences.

Market Penetration
Market penetration is a strategy aimed at increasing a company’s market share within its existing market using its current products or services. This can be achieved through tactics such as competitive pricing, increased marketing efforts, promotions, and enhancing product features. The goal is to attract more customers from the existing market base.

Market Research
Market research is the process of gathering, analyzing, and interpreting information about a market, including information about the target audience, competitors, and industry trends. This research helps businesses understand market dynamics, customer needs and preferences, and the competitive landscape. Insights gained from market research inform product development, marketing strategies, and business decisions.

Market Segmentation
The process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.

Marketing
Marketing is the strategic process of promoting, selling, and distributing a product or service to potential customers. It encompasses a wide range of activities aimed at identifying customer needs, creating value, communicating with the target audience, and building lasting relationships. The ultimate goal of marketing is to drive sales, enhance brand loyalty, and achieve long-term business growth.

Key Components of Marketing:

1. Market Research: Gathering and analyzing data about market trends, customer behaviors, and competitive landscapes to inform marketing strategies and decisions.
2. Target Audience Identification: Segmenting the market to identify specific groups of consumers with shared characteristics or needs who are most likely to purchase the product or service.
3. Product Development: Designing and refining products or services to meet the needs and preferences of the target audience, ensuring they offer unique value and competitive advantages.
4. Branding: Creating and maintaining a strong, recognizable brand identity that resonates with consumers, builds trust, and differentiates the company from competitors.
5. Pricing Strategy: Setting prices based on factors such as production costs, market demand, competitor pricing, and perceived value to maximize profitability and market share.
6. Promotion: Communicating the benefits of the product or service to the target audience through various channels, including advertising, public relations, social media, content marketing, and promotions.
7. Distribution: Ensuring that products or services are available to customers through the most effective channels, whether online, retail, direct sales, or partnerships.
8. Sales Strategy: Developing tactics and processes to convert leads into customers, including sales training, customer relationship management (CRM), and sales promotions.
9. Customer Relationship Management (CRM): Building and maintaining positive relationships with customers to enhance satisfaction, loyalty, and lifetime value through personalized interactions and exceptional service.
10. Analytics and Measurement: Using data and metrics to track the performance of marketing campaigns, assess their effectiveness, and make data-driven decisions to optimize future strategies.

Goals of Marketing:

• Generate Leads: Attract potential customers and convert them into leads for the sales team.
• Increase Sales: Drive revenue growth by persuading customers to purchase products or services.
• Enhance Brand Awareness: Build recognition and visibility for the brand in the market.
• Build Customer Loyalty: Foster long-term relationships with customers to enhance retention and repeat business.
• Understand Customer Needs: Gain insights into customer preferences and behaviors to tailor products, services, and messaging effectively.

Marketing Strategies:

• Inbound Marketing: Attracting customers through content creation, SEO, and social media engagement.
• Outbound Marketing: Reaching customers through traditional advertising, direct mail, and cold calling.
• Digital Marketing: Leveraging online channels such as websites, social media, email, and search engines to reach and engage customers.
• Content Marketing: Creating and distributing valuable, relevant content to attract and retain a clearly defined audience.
• Event Marketing: Organizing and participating in events, trade shows, and webinars to promote products and engage with customers directly.

By effectively implementing these components and strategies, businesses can create compelling marketing campaigns that drive growth, build brand equity, and achieve their objectives in a competitive marketplace.

Two of the leading marketing organisations in the world are:

The Chartered Institute of Marketing (CIM). The CIM was founded in 1911. It has over 30,000 members, including more than 3,000 registered Chartered Marketers. CIM offers 130 study centres in 36 countries, and exam centres in 132 countries.
Find out more about what it can offer you at: https://www.cim.co.uk/

The American Marketing Association is a professional association for marketing professionals with 30,000 members as of 2012. It has 76 professional chapters and 250 collegiate chapters across the United States.
Find out more about what it can offer you at: https://www.ama.org/

Marketing Automation
Technology that manages marketing processes and multifunctional campaigns, across multiple channels, automatically.

Marketing Mix
See 4Ps of Marketing

Marketing Qualified Lead (MQL)
Marketing Qualified Lead (MQL) refers to a lead that has been deemed more likely to become a customer compared to other leads based on their engagement with the company’s marketing efforts. MQLs are identified through specific behaviors and actions that indicate interest in the company’s products or services, such as downloading a whitepaper, filling out a form, subscribing to a newsletter, or engaging with marketing content.

Key Characteristics of MQLs:

1. Engagement: MQLs have shown a higher level of engagement with the company’s marketing content, indicating interest in the product or service.
2. Behavioral Indicators: Actions such as attending webinars, clicking on emails, visiting product pages, and filling out forms are common indicators.
3. Demographic Fit: MQLs often match the company’s target audience profile based on demographic data such as industry, job title, company size, etc.
4. Scoring Criteria: MQLs typically meet a certain threshold in a lead scoring system, where points are assigned based on their interactions and fit.

Importance of MQLs:

• Sales Efficiency: By identifying leads that are more likely to convert, the sales team can focus their efforts on prospects with higher potential, improving efficiency.
• Alignment Between Marketing and Sales: Establishing clear criteria for MQLs helps align marketing and sales efforts, ensuring that leads handed over to sales are genuinely interested and qualified.
• Resource Optimization: Marketing teams can optimize resources by nurturing leads through targeted campaigns until they become MQLs, increasing the likelihood of successful conversion by the sales team.

Process of Identifying MQLs:

1. Lead Scoring: Implement a lead scoring system to assign points based on various engagement activities and demographic data.
2. Criteria Definition: Define the criteria that a lead must meet to be considered an MQL. This might include specific actions like visiting key pages on the website, attending events, or downloading resources.
3. Monitoring and Analysis: Continuously monitor lead behavior and engagement to identify those who meet the MQL criteria.
4. Hand-Off to Sales: Once a lead is identified as an MQL, it is passed on to the sales team for further qualification and follow-up.

Example of an MQL:

A software company offers a free eBook on digital transformation. A lead downloads the eBook, attends a related webinar, and visits the pricing page on the company’s website. Based on this engagement and the lead scoring system, the lead accumulates enough points to be classified as an MQL. The lead’s contact information and interaction history are then forwarded to the sales team for follow-up.

In summary, MQLs are leads that have demonstrated a higher level of interest and engagement with a company’s marketing efforts, making them more likely to convert into customers. Identifying and nurturing MQLs is a crucial step in the sales and marketing process, helping to improve conversion rates and align marketing and sales strategies.

Markup
Markup is the amount added to the cost price of a product to determine its selling price. It represents the difference between the cost to produce or purchase an item and its selling price, essentially reflecting the profit margin on the product. Markup is usually expressed as a percentage of the cost price.

Key Aspects of Markup:

Calculation: The markup percentage is calculated by dividing the difference between the selling price and the cost price by the cost price, then multiplying by 100.

Purpose: Markup helps businesses cover their costs and achieve a desired profit margin.

Example: If a product costs $50 to produce and is sold for $75, the markup is $25. The markup percentage is:

Mid-Market
Mid-market refers to the segment of companies that fall between small businesses and large enterprises in terms of size, revenue, and market influence. Mid-market companies typically have more complex needs than small businesses but are not as resource-intensive as large corporations. They represent a significant portion of the economy and often serve as key drivers of innovation and growth.

Key Characteristics of Mid-Market Companies:

• Revenue: Mid-market companies generally have annual revenues ranging from approximately $10 million to $1 billion, though this range can vary depending on the industry and regional definitions.
• Employee Count: These companies typically employ between 100 and 2,000 employees.
• Complexity: Mid-market companies have more sophisticated operational and managerial needs compared to small businesses, including more advanced IT infrastructure, HR policies, and financial management systems.
• Market Influence: While not as dominant as large enterprises, mid-market companies often play a crucial role in their industries and can be significant competitors.
• Growth Potential: Mid-market companies often have substantial growth potential and may be targets for mergers and acquisitions.

Importance of Mid-Market:

• Economic Impact: Mid-market companies contribute significantly to economic growth, employment, and innovation.
• Business Opportunities: These companies represent a lucrative market for B2B sales and service providers, as they require more sophisticated products and services than small businesses but lack the extensive in-house resources of large enterprises.
• Scalability: Mid-market companies often seek scalable solutions that can grow with their business, making them attractive customers for software and service providers offering flexible, expandable products.

Example of Mid-Market:

A manufacturing company with annual revenues of $50 million and 500 employees is considered a mid-market company. It has more complex operational needs than a small business, such as advanced supply chain management and sophisticated financial reporting, but it does not have the extensive resources and influence of a large multinational corporation.

Middle of the Funnel (MOFU)
Middle of the funnel (MOFU) refers to the stage in the sales and marketing funnel where potential customers have moved beyond the initial awareness phase and are now in the consideration phase. At this point, they are evaluating their options and seeking more in-depth information about the products or services that can meet their needs. The primary goal during the MOFU stage is to nurture these leads, build trust, and provide valuable content that helps them progress towards making a purchase decision.

Key Characteristics of MOFU:

1. Lead Engagement:
   • Interaction: Leads at this stage have shown a higher level of engagement, such as downloading eBooks, attending webinars, or requesting more detailed information.
   • Interest: They are actively considering different solutions and seeking to understand which one best fits their requirements.
2. Content and Messaging:
   • Educational Content: Providing in-depth and valuable content that educates leads about your offerings and how they solve their problems. Examples include case studies, whitepapers, detailed guides, and comparison charts.
   • Personalized Communication: Tailoring messages to address the specific needs and pain points of the leads, often through email marketing, personalized follow-ups, and targeted campaigns.
3. Lead Nurturing:
   • Relationship Building: Developing a relationship with the leads by demonstrating expertise, reliability, and value.
   • Solution Highlighting: Highlighting the unique features and benefits of your product or service that differentiate it from competitors.
4. Conversion Focus:
   • Calls to Action (CTAs): Encouraging leads to take actions that bring them closer to a purchasing decision, such as scheduling a demo, requesting a free trial, or speaking with a sales representative.
   • Qualification: Assessing the leads’ readiness to move to the next stage (Bottom of the Funnel, BOFU) through lead scoring and qualification criteria.

Importance of MOFU:

• Nurturing Leads: Helps in nurturing and educating leads to ensure they are well-informed and confident in their decision-making process.
• Building Trust: Establishing trust and credibility with leads by providing valuable and relevant information.
• Increasing Conversion Rates: Effectively moving leads through the funnel to the decision stage, thereby increasing the likelihood of conversion.
• Targeted Marketing: Allows for more targeted and effective marketing efforts by focusing on leads who have shown a genuine interest.

Example of MOFU Activities:

• Webinars and Events: Hosting webinars or live events that provide detailed information about your product and address specific industry challenges.
• Case Studies: Sharing success stories and case studies that showcase how your product has helped other customers solve similar problems.
• Email Drip Campaigns: Sending a series of targeted and informative emails to nurture leads, answer their questions, and guide them through the consideration process.
• Product Demos: Offering personalized product demonstrations to show the capabilities and benefits of your solution in action.

Monthly Recurring Revenue (MRR)
Assuming a subscription-based business model, Monthly Recurring Revenue (MRR) is the revenue a company expects to earn from its customers on a monthly basis.

MQL (Marketing Qualified Lead)
MQL (Marketing Qualified Lead) refers to a potential customer who has engaged with a company’s marketing efforts and meets specific criteria indicating they have a higher likelihood of becoming a customer compared to other leads. MQLs have shown interest in the company’s products or services through various interactions and are deemed ready for further engagement by the sales team.

Key Aspects of a Marketing Qualified Lead (MQL):

Engagement:

MQLs have engaged with the company’s marketing materials or campaigns, such as downloading a whitepaper, attending a webinar, subscribing to a newsletter, or frequently visiting the company’s website.

Scoring System:

Many companies use lead scoring systems to evaluate and rank leads based on their behavior and engagement. Points are assigned for different actions, and leads reaching a certain threshold are classified as MQLs.

Criteria:

MQLs meet specific criteria set by the marketing team, which can include demographic information (e.g., job title, company size), firmographic information (e.g., industry, revenue), and behavioral data (e.g., website visits, content downloads).

Interest:

MQLs have shown a level of interest that suggests they are considering the company’s product or service as a solution to their needs but are not yet ready for direct sales contact.

Nurturing:

MQLs typically need further nurturing through targeted marketing efforts to move them closer to a purchasing decision. This can involve additional content, personalized emails, and continued engagement.

Handoff to Sales:

Once MQLs have been sufficiently nurtured and meet additional criteria, they are handed off to the sales team as Sales Qualified Leads (SQLs) for more direct sales engagement.

Example:

A lead might be classified as an MQL if they:

Filled out a form to download an industry-specific eBook.

Attended a webinar on a relevant topic hosted by the company.

Visited the company’s pricing page multiple times.

Subscribed to the company’s email newsletter and regularly opened the emails.

Importance of MQLs in the Sales and Marketing Process:

Efficient Resource Allocation:

Identifying MQLs helps the marketing team focus their efforts on leads that have a higher potential for conversion, making more efficient use of marketing resources.

Alignment:

MQLs ensure better alignment between marketing and sales teams. By establishing clear criteria for MQLs, both teams can work together more effectively to move leads through the sales funnel.

Improved Conversion Rates:

MQLs have demonstrated interest and engagement, making them more likely to convert compared to unqualified leads. This targeted approach leads to higher conversion rates.

Personalized Marketing:

Knowing who the MQLs are allows marketers to tailor their messaging and campaigns to address specific needs and interests, leading to a more personalized and effective marketing strategy.

An MQL (Marketing Qualified Lead) is a lead that has engaged with marketing efforts and meets specific criteria indicating a higher likelihood of conversion. MQLs are essential for focusing marketing resources, aligning marketing and sales teams, and improving conversion rates. Properly identifying and nurturing MQLs is a critical step in the sales funnel, ensuring that leads are effectively moved towards becoming customers.


Multi-Touch Attribution
Multi-touch attribution is a marketing measurement approach that evaluates the contribution of each customer touchpoint in the conversion process. Unlike single-touch attribution models, which give all credit to one touchpoint (e.g., the first or last interaction), multi-touch attribution distributes credit across all touchpoints that a customer encounters on their journey to making a purchase. This method provides a more holistic view of how different marketing channels and interactions contribute to the final conversion.

Key Components of Multi-Touch Attribution:

Touchpoints: Every interaction a potential customer has with a brand before converting, such as clicking on an ad, reading an email, visiting a website, or engaging on social media.

Attribution Models: Different models that distribute credit to touchpoints in various ways. Common models include linear, time decay, U-shaped, and W-shaped.

Common Multi-Touch Attribution Models:

Linear Attribution: Distributes credit equally across all touchpoints in the customer journey.

Example: If a customer interacted with five touchpoints before converting, each touchpoint would receive 20% of the credit.

Time Decay Attribution: Gives more credit to touchpoints that occurred closer to the conversion event.

Example: If a customer interacted with several touchpoints over time, the most recent interactions would receive more credit than earlier ones.

U-Shaped (Position-Based) Attribution: Assigns 40% of the credit to the first and last touchpoints and distributes the remaining 20% among the middle touchpoints.

Example: If there are five touchpoints, the first and last would each get 40% of the credit, and the remaining 20% would be split among the three middle touchpoints.

W-Shaped Attribution: Assigns significant credit to the first touchpoint, lead creation touchpoint, and the last touchpoint, with the remaining credit distributed among other interactions.

Example: The first, middle (lead creation), and last touchpoints each get 30%, and the remaining 10% is split among the other touchpoints.

Custom Attribution: Businesses can create custom models tailored to their specific customer journey and marketing strategy, weighing touchpoints based on their perceived importance.

Importance of Multi-Touch Attribution:

Holistic Insight: Provides a comprehensive view of the entire customer journey, showing how different touchpoints contribute to conversions.

Optimized Marketing Spend: Helps allocate marketing budgets more effectively by identifying which channels and touchpoints are most influential in driving conversions.

Improved Campaign Performance: Allows marketers to optimize campaigns by understanding the combined impact of various touchpoints rather than relying on a single interaction.

Better ROI Measurement: Enhances the accuracy of return on investment (ROI) calculations by attributing conversions to multiple channels.

Informed Decision Making: Provides data-driven insights that guide strategic decisions on marketing tactics and resource allocation.

Example of Multi-Touch Attribution:

Consider a customer who goes through the following touchpoints before making a purchase:

Clicks on a Facebook ad

Visits the company website

Downloads a whitepaper

Receives and opens a marketing email

Makes a purchase

Using a linear attribution model, each touchpoint would receive 20% of the credit for the conversion. In contrast, a time decay model might give more weight to the email and purchase touchpoints.

Multi-Touch Attribution provides a nuanced understanding of how various marketing efforts contribute to customer conversions. By distributing credit across multiple touchpoints, businesses can gain deeper insights into the effectiveness of their marketing strategies, optimize their campaigns, and make more informed decisions to drive growth and improve ROI.

Native Advertising
Native advertising is a type of paid advertising that matches the form and function of the platform on which it appears. Unlike traditional display ads or banner ads, native ads blend seamlessly into the surrounding content, making them less intrusive and more engaging for users. The goal of native advertising is to provide a non-disruptive user experience while still delivering a marketing message.

Key Characteristics of Native Advertising:

Seamless Integration:

Native ads are designed to look and feel like the natural content of the platform, whether it’s a social media feed, a news website, or an app. They align with the style, tone, and format of the organic content around them.

Relevance:

The content of native ads is highly relevant to the audience, providing value and aligning with their interests. This relevance helps increase engagement and reduces the likelihood of the ad being perceived as disruptive.

Non-Intrusive:

Native ads are less likely to be blocked by ad blockers and are generally more accepted by users because they do not interrupt the user experience in the way traditional ads might.

Content-Driven:

Native advertising often involves high-quality, informative, or entertaining content that resonates with the target audience. This content can include articles, videos, infographics, or social media posts.

Common Types of Native Advertising:

In-Feed Ads:

These ads appear within the feed of a social media platform, news site, or blog. They are designed to look like the other posts or articles in the feed.

Search Ads:

Native ads that appear at the top or bottom of search engine results pages (SERPs). They look similar to organic search results but are marked as sponsored or ad content.

Recommendation Widgets:

These ads appear as content recommendations on websites, often under headings like “You Might Also Like” or “Sponsored Content.” They blend with the site’s editorial content.

Promoted Listings:

These ads appear on e-commerce sites like Amazon or Etsy as product listings. They look similar to organic listings but are marked as sponsored.

In-Ad with Native Element Units:

These are traditional banner or display ads that contain contextual elements to make them appear native to the content around them.

Custom Content:

These ads involve creating bespoke content for a publisher’s site, often written by the publisher’s editorial team to match the style of the site’s organic content.

Example of Native Advertising:

A popular example of native advertising is a sponsored article on a news website. Suppose a travel company sponsors an article on a popular travel blog. The article, titled “Top 10 Hidden Gems to Visit in Europe,” is written in the same style as other articles on the blog and provides useful travel tips. However, it subtly integrates mentions of the travel company’s services, along with links to book trips.

Importance of Native Advertising:

Higher Engagement: Native ads tend to have higher engagement rates compared to traditional ads because they provide relevant content that interests the audience.

Improved User Experience: By blending in with the platform’s content, native ads offer a more pleasant and less disruptive experience for users.

Increased Credibility: Because they match the surrounding content, native ads can appear more credible and trustworthy to users.

Better Ad Performance: The non-intrusive nature and relevance of native ads often lead to better ad performance in terms of click-through rates (CTR) and conversion rates.

Native advertising is an effective marketing strategy that leverages the natural look and feel of the platform to deliver relevant, engaging, and non-disruptive ads. By seamlessly integrating with the content around them, native ads enhance user experience, boost engagement, and improve overall ad performance, making them a valuable tool for modern marketers.

NAM
A National Account Manager (NAM) is a senior sales professional responsible for managing and overseeing a company’s relationships with its largest and most important clients across the entire nation. These clients, often referred to as national accounts, typically include major retail chains, large corporations, or significant business partners that operate on a national scale. The role of a NAM is to ensure these key accounts receive exceptional service, maintain strong relationships, and drive significant revenue growth.

Key Responsibilities of a National Account Manager:

1. Client Relationship Management:
   • Building Relationships: Establishing and nurturing long-term relationships with key stakeholders within national accounts.
   • Communication: Serving as the primary point of contact for these accounts, ensuring consistent and effective communication.
2. Strategic Planning:
   • Account Strategy: Developing and implementing strategic plans tailored to each national account to meet their specific needs and objectives.
   • Business Development: Identifying opportunities for growth within existing accounts and working to expand the company’s presence and influence.
3. Sales and Revenue Growth:
   • Sales Targets: Achieving or exceeding sales targets and revenue goals set for national accounts.
   • Negotiation: Negotiating contracts, pricing, and terms of service to maximize profitability while meeting client needs.
4. Coordination and Collaboration:
   • Cross-Functional Coordination: Working closely with other departments, such as marketing, product development, and customer service, to ensure a cohesive approach to account management.
   • Team Leadership: Leading or coordinating a team of account executives or other sales professionals who support the national accounts.
5. Performance Monitoring and Reporting:
   • Metrics and KPIs: Tracking and analyzing key performance indicators (KPIs) and metrics related to national account performance.
   • Reporting: Providing regular reports and updates to senior management on account status, challenges, and opportunities.
6. Problem Solving:
   • Issue Resolution: Addressing and resolving any issues or challenges that arise within the national accounts promptly and effectively.
   • Customer Satisfaction: Ensuring high levels of customer satisfaction and loyalty by delivering exceptional service and support.

Skills and Qualifications:

• Sales Expertise: Strong background in sales, with a proven track record of managing large accounts and achieving sales targets.
• Communication Skills: Excellent verbal and written communication skills to interact effectively with clients and internal teams.
• Negotiation Skills: Ability to negotiate favorable terms and close deals that benefit both the company and the client.
• Strategic Thinking: Capacity to develop and execute strategic plans that align with both the client’s and the company’s goals.
• Industry Knowledge: Deep understanding of the industry and market trends relevant to the national accounts.
• Problem-Solving: Strong problem-solving abilities to address and resolve client issues efficiently.

Example of a National Account Manager in Action:

A National Account Manager for a consumer electronics company manages the relationship with a major national retail chain. The NAM develops a strategic plan to increase product placement in the retailer’s stores, negotiates pricing and promotional agreements, and coordinates with the marketing team to create joint marketing campaigns. They regularly meet with the retailer’s key decision-makers to review performance, address any issues, and identify opportunities for new product launches. By maintaining a strong relationship and providing exceptional service, the NAM ensures the retail chain remains a loyal and profitable account for the company.

In summary, a National Account Manager (NAM) plays a critical role in managing and growing the relationships with a company’s most important national clients. Through strategic planning, effective communication, and exceptional service, NAMs drive significant revenue growth and ensure the long-term success of these key accounts.

Negotiation
Negotiation is the process by which two or more parties engage in dialogue to reach a mutually beneficial agreement or resolve a conflict. In a sales and marketing context, negotiation typically involves discussions between a seller and a buyer to finalize the terms of a sale, including price, delivery, payment terms, and other conditions of the transaction. The goal of negotiation is to find a middle ground where both parties feel their interests have been adequately addressed and they are satisfied with the outcome.

Key Aspects of Negotiation:

1. Preparation:
   • Research: Gathering information about the other party, understanding their needs, interests, and constraints, and being aware of market conditions and competitive offerings.
   • Objectives: Defining clear goals and acceptable terms for the negotiation, including the minimum acceptable outcomes.
2. Communication:
   • Active Listening: Paying close attention to the other party’s words and non-verbal cues to understand their perspective and underlying interests.
   • Clear Articulation: Expressing one’s own needs, preferences, and constraints clearly and effectively.
3. Bargaining:
   • Proposals and Counterproposals: Making initial offers and responding to the other party’s offers with counteroffers that seek to find a balance between both parties’ interests.
   • Concessions: Willingness to make compromises or concessions on less critical issues to gain advantages on more important ones.
4. Problem-Solving:
   • Creative Solutions: Thinking creatively to find win-win solutions that satisfy the interests of both parties.
   • Conflict Resolution: Addressing and resolving any disputes or misunderstandings that arise during the negotiation process.
5. Closing:
   • Agreement: Reaching a final agreement that both parties accept and formalizing it, often in a written contract or agreement.
   • Documentation: Ensuring all terms and conditions agreed upon are clearly documented and understood by both parties.
6. Follow-Up:
   • Implementation: Ensuring that the agreed terms are implemented and adhered to.
   • Relationship Management: Maintaining a positive relationship with the other party for potential future negotiations or business dealings.

Skills and Qualities for Effective Negotiation:

• Analytical Skills: Ability to analyze information, understand key issues, and develop strategic approaches.
• Communication Skills: Strong verbal and written communication abilities to articulate positions and understand the other party’s perspective.
• Interpersonal Skills: Building rapport and trust, and managing emotions effectively during discussions.
• Patience and Persistence: Remaining calm and persistent, even when negotiations become challenging or prolonged.
• Flexibility and Creativity: Being adaptable and open to finding innovative solutions that benefit both parties.

Example of Negotiation in a Sales Context:

A software company is negotiating a large contract with a potential corporate client. The client requests a significant discount on the software licenses. The sales representative prepares by researching the client’s budget constraints and competitive offerings. During the negotiation, the sales rep listens to the client’s needs and explains the value and benefits of their software. They propose a smaller discount combined with extended payment terms and additional support services. The client counters with a slightly higher discount request, and the sales rep agrees, provided the client commits to a longer-term contract. Both parties reach an agreement that addresses the client’s budget while ensuring the software company’s profitability.

In summary, negotiation is a critical process in sales and marketing that involves strategic dialogue and compromise to reach a mutually satisfactory agreement. Effective negotiation requires preparation, communication, problem-solving, and the ability to build and maintain positive relationships.

The Harvard Business Review features many good articles on negotation (and countless other business related topics).

Find out more at: https://hbr.org/

Simon Hazeldine’s second book “Bare Knuckle Negotiating” contains powerful, practical and solid advice that you can use to improve your negotiating skills.

To find out more please visit:

Amazon UK

Amazon.com

NPS (Net Promoter Score)
Net promoter score (NPS) is a customer loyalty metric that measures the likelihood of customers recommending a company’s product or service to others. It is calculated based on responses to a single question: “On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?” Respondents are categorized as:

• Promoters (9-10): Loyal enthusiasts who will keep buying and refer others, fueling growth.
• Passives (7-8): Satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
• Detractors (0-6): Unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters:

Needs Assessment
Needs assessment is a systematic process used to determine and address the needs, or gaps between current conditions and desired conditions, often used in the context of training, education, or organizational development. In a sales and marketing context, a needs assessment involves understanding a customer’s specific needs, problems, and goals to provide them with the most appropriate solutions. This typically involves:

• Identifying Customer Needs: Through interviews, surveys, or observations.
• Analyzing Needs: Understanding the root causes and implications of the identified needs.
• Prioritizing Needs: Determining which needs are the most critical to address.

Net New Business
Net new business refers to new customer accounts or contracts acquired over a specific period that contribute to a company’s growth. This metric focuses on the acquisition of entirely new clients, excluding renewals or expansions of existing client contracts. Net new business is critical for assessing a company’s ability to grow its customer base and increase market share.

New Product Development (NPD)
New product development (NPD) is the process of bringing a new product to the market. This involves several stages, from idea generation to product design, development, testing, and commercialization. The NPD process typically includes:

• Idea Generation: Brainstorming new product ideas from various sources.
• Screening: Evaluating ideas to select the most promising ones.
• Concept Development and Testing: Developing detailed product concepts and testing them with potential customers.
• Business Analysis: Assessing the market potential, cost, and profitability of the product.
• Product Development: Designing and developing the actual product.
• Market Testing: Testing the product in a limited market to gather feedback and refine the product.
• Commercialization: Launching the product in the market with full-scale production and marketing efforts.

By understanding and effectively implementing these concepts, businesses can enhance customer satisfaction, drive growth, and successfully introduce new products to the market.

Objection
Objection refers to a concern, hesitation, or doubt expressed by a potential customer regarding a product or service during the sales process. Objections can arise at any stage of the sales funnel and are often related to price, product features, suitability, or timing. Addressing objections effectively is crucial for moving the prospect towards a purchase decision.

Common Types of Sales Objections:

• Price: “It’s too expensive” or “I can’t afford it.”
• Need: “I don’t see the need for this” or “I’m not interested.”
• Timing: “I’m not ready to buy right now” or “Maybe later.”
• Trust: “I don’t know if this will work for me” or “I’ve had a bad experience before.”
• Competitor: “I’m already using a competitor’s product.”

Addressing Objections:

• Listen: Understand the prospect’s concerns without interrupting.
• Acknowledge: Show empathy and acknowledge their concerns.
• Clarify: Ask questions to clarify the objection and understand its root cause.
• Respond: Provide information or solutions that address the objection.
• Confirm: Ensure that the objection has been resolved and move the conversation forward.

Offer
Offer refers to the specific proposal made to a potential customer, detailing the terms under which a product or service will be provided. An offer typically includes the product or service description, pricing, discounts, special conditions, and any additional incentives or bonuses. Offers are designed to entice the prospect to make a purchase and can be tailored to meet the specific needs and preferences of different customer segments.

Key Components of an Offer:

• Product/Service Details: Clear and concise description of what is being offered.
• Pricing: Cost of the product or service, including any discounts or promotions.
• Value Proposition: Explanation of the benefits and unique value of the offer.
• Call to Action (CTA): Encouragement for the customer to take a specific action, such as making a purchase or signing up.
• Terms and Conditions: Any specific conditions, limitations, or timeframes associated with the offer.

On-Boarding
On-Boarding refers to the process of welcoming and integrating new customers or users after they have purchased a product or service. The goal of on-boarding is to ensure a smooth transition, help customers get started with the product, and maximize their satisfaction and engagement. Effective on-boarding can lead to higher customer retention, reduced churn, and increased lifetime value.

Key Steps in the On-Boarding Process:

• Welcome: Sending a welcome message or email to thank the customer and provide an introduction.
• Training and Resources: Providing access to user guides, tutorials, webinars, or training sessions to help the customer understand how to use the product.
• Setup Assistance: Assisting with the initial setup and configuration of the product, if necessary.
• Ongoing Support: Offering continued support through customer service, help desks, or dedicated account managers.
• Feedback and Follow-Up: Collecting feedback from the customer on their experience and addressing any issues or questions.

Example of On-Boarding in a Software Company:

After a customer purchases a subscription to a new software product, the on-boarding process might include:

1. Welcome Email: Sending an email with login details and a brief overview of what to expect.
2. Product Tour: Providing a guided tour of the software’s features and functionality.
3. Training Resources: Offering access to video tutorials, user manuals, and FAQs.
4. Setup Help: Assisting with the initial setup through a live chat or support call.
5. Check-Ins: Scheduling follow-up calls or emails to ensure the customer is satisfied and fully utilizing the product.

On-Premise CRM
An on-premise CRM system is hosted on a company’s server, allowing for more control over data and accessibility within the organization’s network.

Opportunity
An opportunity is a potential sales deal that has been qualified and represents a prospect with a high likelihood of purchasing a product or service. An opportunity is typically created when a lead progresses through the sales funnel and exhibits significant interest and buying intent. Opportunities are tracked and managed by the sales team to convert them into actual sales.

Key Characteristics of an Opportunity:

• Qualified Lead: The lead has been vetted and meets the criteria to be considered a serious potential customer.
• Engagement: The prospect has shown a high level of interest and engagement, such as requesting a demo, attending a meeting, or actively seeking more information.
• Sales Stage: The opportunity is often categorized into various stages within the sales process, such as initial contact, needs analysis, proposal, negotiation, and closing.
• Potential Value: Each opportunity is assigned an estimated value based on the potential revenue it represents.
• Timeline: There is typically an expected timeline or close date associated with the opportunity.

Example of an Opportunity:

A software company identifies an opportunity when a prospective client, who has already expressed interest in their product through a webinar, requests a detailed product demo and a meeting to discuss their specific needs.

Opportunity Management
Opportunity management refers to the systematic process of tracking, analyzing, and handling sales opportunities to maximize the chances of converting them into actual sales. It involves a series of actions and best practices designed to manage potential sales from initial contact through to closing the deal.

Key Components of Opportunity Management:

1. Tracking and Documentation:
   • CRM System: Using Customer Relationship Management (CRM) software to track all interactions, communications, and activities related to each opportunity.
   • Sales Pipeline: Visualizing the sales pipeline to monitor the progress of each opportunity through various stages.
2. Qualification:
   • Criteria Assessment: Ensuring that opportunities meet specific qualification criteria, such as budget, authority, need, and timeline (BANT).
   • Lead Scoring: Assigning scores to opportunities based on their potential value and likelihood of closing.
3. Engagement:
   • Communication: Maintaining regular and personalized communication with prospects to understand their needs and build relationships.
   • Follow-Up: Timely follow-ups to keep the opportunity moving forward and address any concerns or objections.
4. Collaboration:
   • Team Coordination: Collaborating with other teams, such as marketing, product, and customer support, to provide comprehensive solutions to the prospect.
   • Resource Allocation: Allocating the right resources, such as sales representatives, technical experts, or demo specialists, to manage the opportunity effectively.
5. Analysis and Forecasting:
   • Pipeline Analysis: Analyzing the sales pipeline to identify trends, potential bottlenecks, and areas for improvement.
   • Forecasting: Predicting future sales performance based on the current status and progression of opportunities.
6. Closing:
   • Negotiation: Engaging in negotiations to finalize terms and conditions, addressing any final objections, and securing the sale.
   • Documentation: Ensuring all necessary documents and contracts are completed and signed.
7. Post-Sale Activities:
   • Handover: Transitioning the new customer to the account management or customer success team for onboarding and ongoing support.
   • Feedback: Gathering feedback from the customer to identify areas of improvement and enhance future opportunity management processes.

Example of Opportunity Management:

A sales representative at a manufacturing company uses a CRM system to manage an opportunity with a large retail chain. They track all communications and meetings in the CRM, qualify the opportunity based on the retail chain’s budget and needs, and collaborate with the product team to provide a tailored solution. The sales rep regularly follows up with the prospect, addresses their concerns, negotiates terms, and eventually closes the deal. Post-sale, the account is handed over to the customer success team for implementation and support.

By effectively managing opportunities, businesses can improve their sales processes, increase conversion rates, and ultimately drive revenue growth.

Organic Traffic
Organic traffic refers to the visitors who land on a website through unpaid search results from search engines like Google, Bing, or Yahoo. These visitors find the website naturally, often by typing queries into the search engine and clicking on one of the non-paid search results. Organic traffic is a key indicator of a website’s relevance and authority, as it reflects how well the site ranks in search engine results pages (SERPs) for various keywords.

Key Characteristics of Organic Traffic:

1. Unpaid: Unlike paid traffic, which comes from advertisements, organic traffic is free and generated naturally through search engine algorithms.
2. Search Engine Optimization (SEO): The primary method to increase organic traffic is through SEO, which involves optimizing website content and structure to rank higher in search results.
3. High Intent: Visitors arriving via organic search often have a specific intent or need, making them valuable prospects for conversion.
4. Sustainability: While building organic traffic can take time, it provides a sustainable source of visitors without ongoing costs.

Importance of Organic Traffic:

• Cost-Effective: Organic traffic is free, making it a cost-effective way to attract visitors compared to paid advertising.
• Credibility and Trust: High organic search rankings can enhance a website’s credibility and trustworthiness in the eyes of users.
• Long-Term Results: Effective SEO strategies can yield long-lasting benefits, maintaining or increasing traffic over time.
• User Engagement: Visitors who arrive organically are often more engaged, as they have actively searched for information or solutions that the website provides.

How to Increase Organic Traffic:

1. Keyword Research: Identifying relevant keywords that potential visitors are searching for and incorporating them naturally into website content.
2. Quality Content: Creating high-quality, valuable content that addresses the needs and interests of the target audience.
3. On-Page SEO: Optimizing elements of the website, including title tags, meta descriptions, headers, and internal links.
4. Technical SEO: Ensuring the website is technically sound with fast loading times, mobile-friendliness, and a clear site structure.
5. Backlinks: Acquiring high-quality backlinks from reputable websites to enhance domain authority and search rankings.
6. User Experience: Improving the overall user experience with intuitive navigation, engaging visuals, and easy-to-read content.

Example of Organic Traffic:

A travel blog that publishes detailed guides and tips for various destinations might see a significant portion of its traffic come from users searching for terms like “best places to visit in Europe” or “travel tips for Japan.” These users find the blog through search engine results, without the blog having to pay for their visits.

In summary, organic traffic is a critical component of a website’s overall traffic strategy, driven by search engine optimization and high-quality content. It represents visitors who find the site through natural search engine results, offering a cost-effective, sustainable, and credible source of web traffic.

Outbound Sales
Outbound sales refers to the proactive approach of reaching out to potential customers to generate interest in a product or service and to convert them into paying customers. This approach involves the sales team initiating contact with leads, often through methods such as cold calling, emailing, direct mail, or social media outreach. The goal of outbound sales is to identify and engage with prospects who may not be actively seeking the company’s products or services.

Key Characteristics of Outbound Sales:

• Proactive Outreach: Sales representatives initiate contact with potential customers.
• Cold Calling/Emailing: Using phone calls and emails to reach out to prospects.
• Lead Generation: Identifying and targeting new leads through research and marketing lists.
• Personalized Pitches: Tailoring sales pitches to address the specific needs and interests of each prospect.
• Follow-Up: Engaging in follow-up communication to nurture leads and move them through the sales funnel.

Pain Point
A pain point refers to a specific problem or challenge that a potential customer is experiencing, which they are looking to resolve. Understanding and addressing pain points is crucial for sales and marketing efforts, as it allows businesses to tailor their solutions to meet the actual needs of their customers.

Key Characteristics of Pain Points:

• Customer Challenges: Issues or difficulties that customers face in their personal or professional lives.
• Needs and Desires: Factors that drive the customer to seek solutions to their problems.
• Opportunity for Solutions: Areas where a company’s product or service can provide relief or improvement.

Examples of Pain Points:

• Financial: “We are spending too much on outdated software.”
• Efficiency: “Our current process is too time-consuming.”
• Support: “We lack adequate customer support for our products.”

Performance Improvement Plan (PIP)
A performance improvement plan (PIP) is a formal document and process designed to help employees improve their work performance. It outlines specific areas where a salesperson’s performance is lacking, sets clear and measurable goals for improvement, and provides a timeline and resources to help the employee meet those goals. The PIP is used as a tool for managing underperformance and helping salespeople to reach the desired performance standards.

Key Components of a PIP:

• Areas for Improvement: Detailed description of the performance issues that need to be addressed.
• Goals and Objectives: Specific, measurable, achievable, relevant, and time-bound (SMART) goals that the salesperson needs to achieve.
• Timeline: A defined period within which the salesperson must show improvement.
• Resources and Support: Information on the resources, training, or support that will be provided to help the salesperson improve.
• Consequences: Explanation of the potential outcomes if the salesperson fails to meet the improvement goals, which may include further disciplinary action or termination.

Personalization
Personalization refers to the process of tailoring marketing messages, content, and product offerings to individual customers based on their preferences, behaviours, and demographic information. The goal of personalization is to create more relevant and engaging customer experiences, which can lead to increased satisfaction, loyalty, and conversions.

Key Characteristics of Personalization:

• Customer Data: Using data on customer preferences, behaviors, purchase history, and interactions to inform personalization efforts.
• Tailored Content: Customizing content and marketing messages to match the specific interests and needs of individual customers.
• Dynamic Experiences: Creating adaptable experiences on websites, emails, and other digital platforms that change based on user behavior and characteristics.
• Customer Segmentation: Dividing the customer base into segments based on shared attributes to provide more relevant and targeted marketing efforts.

Examples of Personalization:

• Email Marketing: Sending personalized emails that address the recipient by name and include product recommendations based on their past purchases.
• Website Experience: Displaying personalized content and product suggestions on a website based on the user’s browsing history and preferences.
• Product Recommendations: Offering customized product recommendations on an e-commerce site based on a customer’s previous shopping behavior.

Pipeline
Pipeline, often referred to as a Sales Pipeline, is a visual representation of the stages that a prospect goes through from initial contact to becoming a customer. It outlines the entire sales process and helps sales teams track the progress of each opportunity. The sales pipeline typically includes several stages, such as lead generation, qualification, proposal, negotiation, and closing.

Key Characteristics of a Sales Pipeline:

• Stages: Clearly defined steps that represent the sales process from prospecting to closing the deal.
• Opportunities: Individual potential sales that are tracked as they move through the pipeline stages.
• Metrics: Key performance indicators (KPIs) such as conversion rates, average deal size, and sales cycle length that help measure the effectiveness of the sales process.
• Forecasting: Predicting future sales revenue based on the opportunities currently in the pipeline and their likelihood of closing.

Example of Sales Pipeline Stages:

1. Prospecting: Identifying potential leads through various channels such as networking, referrals, and marketing campaigns.
2. Lead Qualification: Evaluating leads to determine if they meet the criteria to become potential customers.
3. Initial Contact: Making the first contact with the lead to understand their needs and introduce the product or service.
4. Needs Analysis: Conducting a thorough assessment of the lead’s requirements and pain points.
5. Proposal: Presenting a tailored solution and proposal to the lead.
6. Negotiation: Discussing terms, addressing objections, and negotiating the deal.
7. Closing: Finalizing the sale and converting the lead into a customer.
8. Post-Sale: Providing onboarding and support to ensure customer satisfaction and retention.

Pipeline Management
Pipeline management refers to the process of overseeing and optimizing the sales pipeline to ensure a steady flow of opportunities and maximize sales performance. It involves tracking and analyzing the progress of opportunities through the pipeline stages, identifying bottlenecks, and implementing strategies to improve the conversion rate and efficiency of the sales process.

Key Components of Pipeline Management:

1. Monitoring and Tracking: Regularly tracking the status of each opportunity in the pipeline to ensure they are progressing through the stages.
2. Analysis and Metrics: Analyzing key metrics such as the number of opportunities at each stage, conversion rates, and the average time spent in each stage.
3. Forecasting and Reporting: Using pipeline data to predict future sales performance and generate reports for sales management.
4. Optimizing Sales Process: Identifying areas for improvement in the sales process and implementing changes to streamline operations and increase efficiency.
5. Lead Prioritization: Prioritizing leads and opportunities based on their potential value and likelihood of closing.
6. Team Collaboration: Ensuring effective communication and collaboration among sales team members to manage opportunities and address challenges.

Benefits of Effective Pipeline Management:

• Improved Sales Forecasting: More accurate predictions of future sales revenue based on the current pipeline.
• Increased Efficiency: Streamlined sales processes and reduced time spent on unqualified leads.
• Higher Conversion Rates: Better management of opportunities leading to higher conversion rates and more closed deals.
• Enhanced Visibility: Clear visibility into the status and progress of each opportunity, enabling proactive decision-making.
• Better Resource Allocation: Efficient allocation of sales resources to the most promising opportunities.

Example of Pipeline Management in Action:

A software company uses a CRM system to manage its sales pipeline. The sales manager regularly reviews the pipeline to track the progress of each opportunity and identify any bottlenecks. By analyzing the data, the manager notices that many opportunities are stalling at the proposal stage. To address this, the manager provides additional training to the sales team on how to create more compelling proposals and implements a follow-up strategy to engage prospects more effectively. As a result, the company sees an improvement in conversion rates and a shorter sales cycle.

In summary, a Pipeline represents the stages of the sales process that a prospect goes through, while Pipeline Management involves overseeing and optimizing this process to ensure a steady flow of opportunities and maximize sales performance. Effective pipeline management helps sales teams track progress, identify areas for improvement, and ultimately close more deals.

Pipeline Sufficiency
Pipeline sufficiency refers to the adequacy of the sales pipeline in terms of the number and value of opportunities needed to achieve sales targets and goals. It measures whether the pipeline has enough qualified opportunities at various stages to meet future sales objectives. Pipeline sufficiency ensures that there are sufficient prospects progressing through the sales funnel to support revenue goals.

Key Aspects of Pipeline Sufficiency:

• Target Alignment: Ensuring the pipeline aligns with sales targets and quotas.
• Opportunity Volume: Assessing if there are enough opportunities in the pipeline.
• Deal Size: Evaluating the average deal size to ensure it matches revenue targets.
• Conversion Rates: Considering historical conversion rates to predict the likelihood of closing enough deals.
• Stage Distribution: Ensuring opportunities are adequately distributed across different stages of the pipeline.

Example:

A sales manager calculates that to meet the quarterly target of $1 million in sales, the team needs a minimum pipeline sufficiency of $4 million in opportunities, assuming a 25% conversion rate from leads to closed deals.

Pipeline Velocity
Pipeline velocity measures the speed at which opportunities move through the sales pipeline from initial contact to closing. It quantifies how quickly deals are progressing and helps identify bottlenecks that may be slowing down the sales process. Pipeline velocity is crucial for forecasting and optimizing the sales cycle to accelerate revenue generation.

Key Aspects of Pipeline Velocity:

• Speed of Movement: The average time opportunities spend in each stage of the sales pipeline.
• Sales Cycle Length: The total duration from the initial contact to closing the deal.
• Stage Transition: The rate at which opportunities move from one stage to the next.
• Bottleneck Identification: Identifying stages where opportunities tend to stall and implementing strategies to overcome these delays.

Example:

A sales team calculates pipeline velocity by multiplying the number of qualified opportunities by the average deal size and the win rate, then dividing by the average sales cycle length. This helps them understand how quickly they can convert pipeline value into revenue.

Playbook
A sales playbook is a comprehensive guide that outlines the best practices, strategies, processes, and tactics that sales teams should follow to achieve success. A sales playbook provides a standardized approach to selling, ensuring consistency and effectiveness across the sales team. It serves as a reference tool for sales reps to navigate various scenarios they may encounter during the sales process.

Key Components of a Sales Playbook:

• Sales Processes: Detailed steps and workflows for different stages of the sales cycle.
• Buyer Personas: Descriptions of ideal customer profiles and key decision-makers.
• Messaging and Scripts: Recommended messaging, email templates, and call scripts for engaging with prospects.
• Objection Handling: Strategies and responses for addressing common objections.
• Product Information: Detailed information about products or services, including features, benefits, and use cases.
• Competitive Analysis: Insights on competitors and strategies for differentiating the product.
• Performance Metrics: Key performance indicators (KPIs) and metrics to track success.
• Training and Development: Resources and guidelines for ongoing training and skill development.

Example:

A software company creates a sales playbook that includes a step-by-step process for prospecting, qualifying leads, conducting product demos, handling objections, and closing deals. The playbook also contains email templates, competitive analysis, and key performance metrics to track progress.

By understanding and implementing concepts like pipeline sufficiency, pipeline velocity, and utilizing a sales playbook, sales teams can optimize their processes, improve efficiency, and achieve their sales targets more effectively.

Positioning Statement
Positioning statement is a concise and strategic statement used by sales and marketing teams to clearly define how a product, service, or brand fits into the market and stands out from competitors. It articulates the unique value proposition and key benefits that the product or service offers to a specific target audience. In sales, a positioning statement serves as a tailored introduction that sales reps use to initiate conversations with potential customers, conveying their identity, affiliations, and the solutions they offer.

Key Components of a Positioning Statement:

Target Audience:

Defines the specific group of people or businesses the product or service is intended for.

Market Definition:

Describes the category or market in which the product or service competes.

Unique Value Proposition (UVP):

Highlights the unique benefits and value that the product or service provides to the target audience.

Differentiation:

Explains how the product or service is different from and better than the competition.

Credibility:

Establishes trust by mentioning affiliations, partnerships, or any notable achievements.

Example of a Positioning Statement:

“For small business owners looking to streamline their accounting processes, XYZ Accounting Software offers an intuitive and comprehensive solution that simplifies financial management. Unlike other accounting tools, our software integrates seamlessly with existing systems and provides real-time analytics, helping businesses save time and reduce errors. With over 10 years of industry experience, XYZ is the trusted partner for thousands of businesses nationwide.”

Postcard Marketing
Postcard marketing is a direct mail strategy that involves sending promotional postcards to potential or existing customers. Postcards are a cost-effective and tangible way to deliver marketing messages, announcements, or offers directly to a recipient’s mailbox. This form of marketing leverages the physical presence and visual appeal of postcards to capture attention and drive customer engagement.

Key Aspects of Postcard Marketing:

Design:

Postcards should have a visually appealing design that captures attention immediately. This includes the use of bold colors, high-quality images, and clear, readable fonts.

Message:

The marketing message should be concise and impactful, conveying the key points quickly. It can include announcements, special offers, discounts, new product launches, or event invitations.

Call to Action (CTA):

A clear and compelling CTA directs the recipient on what to do next, such as visiting a website, using a discount code, or attending an event.

Targeting:

Effective postcard marketing involves targeting the right audience. This can be based on demographics, geographic location, purchasing behavior, or other relevant criteria.

Personalization:

Personalizing postcards with the recipient’s name or other relevant details can increase engagement and response rates.

Measurement:

Tracking the effectiveness of postcard marketing campaigns through unique codes, dedicated landing pages, or tracking phone numbers helps measure ROI and optimize future campaigns.

Example of Postcard Marketing:

A local fitness center might send out postcards to nearby residents offering a special promotion, such as “Join now and get your first month free!” The postcard would feature attractive images of the gym, highlight key benefits, and include a CTA like “Call now to claim your free month!” or “Visit our website to sign up.”

PPC (Pay-Per-Click)
An internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher when the ad is clicked.

Procurement
Procurement is the process of acquiring goods, services, or works from external sources, typically through a tendering or competitive bidding process. It involves various stages such as identifying needs, specifying requirements, selecting suppliers, negotiating contracts, and managing supplier relationships. The goal of procurement is to obtain quality products or services at the best possible price and ensure they are delivered in a timely manner.

Key Aspects of Procurement:

• Needs Identification: Determining what products or services are required.
• Supplier Selection: Identifying and evaluating potential suppliers.
• Contract Negotiation: Negotiating terms, prices, and conditions with suppliers.
• Purchase Orders: Issuing formal orders to suppliers.
• Delivery and Receipt: Ensuring the timely delivery and receipt of goods or services.
• Supplier Management: Managing relationships with suppliers and monitoring their performance.

Example:

A manufacturing company’s procurement team identifies the need for raw materials, evaluates suppliers based on price and quality, negotiates contracts, places orders, and manages ongoing supplier relationships to ensure timely delivery.

Profit Margin
Profit margin is a financial metric that measures the degree of profitability of a business, product, or service. It is calculated as the percentage of revenue that exceeds the costs of production. Profit margin indicates how much profit a company makes for each dollar of sales and is a key indicator of financial health and operational efficiency.

Key Aspects of Profit Margin:

Gross Profit Margin: Calculated by dividing gross profit (revenue minus the cost of goods sold) by revenue. It measures the profitability of core activities.

Net Profit Margin: Calculated by dividing net profit (total revenue minus all expenses) by revenue. It measures overall profitability after accounting for all costs.

Operating Profit Margin: Calculated by dividing operating profit (revenue minus operating expenses) by revenue. It measures profitability from regular operations.

Example:

A company has $500,000 in revenue and $300,000 in costs. The net profit is $200,000. The net profit margin is calculated as:

Proof of Concept (POC)
Proof of concept (POC) is a demonstration or prototype used to verify that certain concepts or theories have the potential for real-world application. In a business context, a POC is typically used to test the feasibility of a product, service, or solution before committing to full-scale development or implementation. It helps stakeholders understand the viability, functionality, and potential benefits of the proposed solution.

Key Aspects of Proof of Concept:

• Feasibility Testing: Assessing whether the concept can be practically implemented.
• Demonstration: Creating a working model or prototype to showcase the concept.
• Validation: Gathering feedback and data to validate the effectiveness and potential of the concept.
• Risk Assessment: Identifying and addressing potential risks and challenges.

Example:

A software company develops a POC for a new feature to demonstrate its functionality and potential benefits to stakeholders before investing in full-scale development.

Prospect
Prospect refers to a potential customer who has shown some level of interest or engagement with a company’s products or services and meets certain criteria that suggest they could be a good fit. Prospects are further down the sales funnel than suspects and are considered more likely to become leads or customers.

Key Aspects of a Prospect:

Interest Shown:

Prospects have shown some form of interest or engagement, such as visiting the company’s website, downloading a whitepaper, attending a webinar, or responding to an initial outreach.

Qualification:

Prospects have been evaluated based on criteria such as need, budget, authority, and timeline (often referred to as BANT – Budget, Authority, Need, Timeline) and are considered potential customers who are worth pursuing further.

Engagement:

Prospects have interacted with the company’s marketing or sales efforts and have moved beyond the initial identification phase.

Example:

A business professional who downloaded a whitepaper from a software company’s website and filled out a form providing their contact information and interest in learning more about the product.

Prospecting
Prospecting is the process of identifying and engaging potential customers or clients who may be interested in a company’s products or services. It involves researching, reaching out, and qualifying leads to build a pipeline of potential sales opportunities. Prospecting is a critical step in the sales process as it helps generate new business and expand the customer base.

Key Aspects of Prospecting:

Lead Generation: Identifying potential customers through various methods such as networking, referrals, social media, and marketing campaigns.

Research: Gathering information about potential leads to understand their needs, preferences, and buying behavior.

Outreach: Initiating contact with potential leads through emails, phone calls, social media, and other channels.

Qualification: Assessing the potential of leads to determine if they are likely to become paying customers.

Example:

A sales representative uses LinkedIn to identify potential clients in the technology sector, researches their company needs, sends personalized outreach emails, and follows up with phone calls to qualify their interest and fit for the product.

By understanding and effectively implementing these concepts, businesses can optimize their operations, improve profitability, validate new ideas, and generate new sales opportunities.

Push Counter
A push counter is dashboard tracker used in some CRM systems to monitor the frequency at which closing an opportunity is being pushed/postponed from period to period.

About the author

Simon Hazeldine works internationally as a revenue growth and sales performance speaker, consultant, and coach. He empowers his clients to get more sales, more often with more margin.

He has spoken in over thirty countries and his client list includes some of the world’s largest and most successful companies.

Simon has a master’s degree in psychology, is the bestselling author of ten books that have been endorsed by a host of business leaders including multi-billionaire business legend Michael Dell and is co-founder of leading sales podcast “The Sales Chat Show”.

He is the creator of the neuroscience based “Brain Friendly Selling”® methodology.

Simon Hazeldine’s books:

• Neuro-Sell: How Neuroscience Can Power Your Sales Success
• Bare Knuckle Selling
• Bare Knuckle Negotiating
• Bare Knuckle Customer Service
• The Inner Winner
• How To Lead Your Sales Team – Virtually and in Person
• Virtual Selling Success
• How To Manage Your People’s Performance
• How To Create Effective Employee Development Plans
• Virtual Negotiation Success