12 Essential Marketing Terms: What are the Key Metrics You Should Understand First?
Posted: Tue Dec 03, 2024 5:39 am
Japan's business environment continues to be plagued by a serious shortage of human resources.
In small and medium-sized companies with few employees, it is becoming increasingly common for existing sales staff and web managers to take on marketing duties as well.
However, many people who are new to marketing may be wondering, " What should I learn first? "
In this article, we will provide a vatican city business email list clear explanation of the basic concepts of marketing, as well as 12 basic terms and important indicators that you should understand first.
By reading to the end, even beginners will be able to understand the basic concepts and terminology of marketing and be able to participate in discussions on the same level as the experts around you.
Basic Concept of Marketing
First, I will explain the basic concepts of marketing for those who are new to marketing.
Simply put, marketing is " creating a system that gets customers to want products and services . "
In creating such a system, it is important to emphasize "a precise understanding of the current situation and setting clear goals ."
In order to close the gap between the current situation and the goal, we plan and implement measures to achieve the goal.
At this time, it is necessary to repeatedly analyze data, identify issues to be addressed in order to achieve the goal, and come up with improvement measures.
Understanding basic marketing terminology is essential to support this process .
There are many technical terms used in the world of marketing, and I'm sure there are many words that you have started to hear in business settings without even realizing it. New technical terms are constantly emerging as times change.
That's why correctly understanding the basic terms commonly used in the marketing world is the first step in deepening your marketing knowledge and becoming a full-fledged marketer.
Indicators commonly used in setting and evaluating business goals
First, we will explain marketing terms related to understanding the current situation and setting goals.
These metrics provide important information that can be used to inform and refine your strategies and tactics to reach your goals.
1. KGI and KPI
Both KGI and KPI are indicators for defining goals to be achieved.
KGI (Key Goal Indicator) is an important indicator of achievement, which is a quantitative definition of the final goal of a business . Specifically, "sales volume," "profit target," and "profit margin" are often set as KGI.
KPI (Key Performance Indicator) refers to an important performance indicator . It is an intermediate goal necessary to achieve KGI , and it is common to specify multiple KPIs. Specifically, there are cases where the targets are "average customer price," "cost rate," and "selling and general administrative expenses."
For example, your KGI might be " increase annual profits by 30% ."
To achieve this, KPIs are set such as "increase sales volume of new products by 50%, "increase repeat purchase rate among existing customers by 10%, and "reduce logistics costs by 20%."
This allows companies to quantitatively evaluate the degree to which their goals are being achieved, and to identify appropriate issues and adjust their strategies.
In small and medium-sized companies with few employees, it is becoming increasingly common for existing sales staff and web managers to take on marketing duties as well.
However, many people who are new to marketing may be wondering, " What should I learn first? "
In this article, we will provide a vatican city business email list clear explanation of the basic concepts of marketing, as well as 12 basic terms and important indicators that you should understand first.
By reading to the end, even beginners will be able to understand the basic concepts and terminology of marketing and be able to participate in discussions on the same level as the experts around you.
Basic Concept of Marketing
First, I will explain the basic concepts of marketing for those who are new to marketing.
Simply put, marketing is " creating a system that gets customers to want products and services . "
In creating such a system, it is important to emphasize "a precise understanding of the current situation and setting clear goals ."
In order to close the gap between the current situation and the goal, we plan and implement measures to achieve the goal.
At this time, it is necessary to repeatedly analyze data, identify issues to be addressed in order to achieve the goal, and come up with improvement measures.
Understanding basic marketing terminology is essential to support this process .
There are many technical terms used in the world of marketing, and I'm sure there are many words that you have started to hear in business settings without even realizing it. New technical terms are constantly emerging as times change.
That's why correctly understanding the basic terms commonly used in the marketing world is the first step in deepening your marketing knowledge and becoming a full-fledged marketer.
Indicators commonly used in setting and evaluating business goals
First, we will explain marketing terms related to understanding the current situation and setting goals.
These metrics provide important information that can be used to inform and refine your strategies and tactics to reach your goals.
1. KGI and KPI
Both KGI and KPI are indicators for defining goals to be achieved.
KGI (Key Goal Indicator) is an important indicator of achievement, which is a quantitative definition of the final goal of a business . Specifically, "sales volume," "profit target," and "profit margin" are often set as KGI.
KPI (Key Performance Indicator) refers to an important performance indicator . It is an intermediate goal necessary to achieve KGI , and it is common to specify multiple KPIs. Specifically, there are cases where the targets are "average customer price," "cost rate," and "selling and general administrative expenses."
For example, your KGI might be " increase annual profits by 30% ."
To achieve this, KPIs are set such as "increase sales volume of new products by 50%, "increase repeat purchase rate among existing customers by 10%, and "reduce logistics costs by 20%."
This allows companies to quantitatively evaluate the degree to which their goals are being achieved, and to identify appropriate issues and adjust their strategies.