Business Models Glossary

In this glossary are comprised all the key business terms to understand any business model

multilevel-marketing

What Is Multi-level Marketing And Why It Matters In Business

Multi-level marketing (MLM), otherwise known as network or referral marketing, is a strategy in which businesses sell their products through person-to-person sales. When consumers join MLM programs, they act as distributors. Distributors make money by selling the product directly to other consumers. They earn a small percentage of sales from those that they recruit to …

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guerrilla-marketing

What Is Guerrilla Marketing And Why It Matters In Business

Guerrilla marketing is an advertising strategy that seeks to utilize low-cost and sometimes unconventional tactics that are high impact. First coined by Jay Conrad Levinson in his 1984 book of the same title, guerrilla marketing works best on existing customers who are familiar with a brand or product and its particular characteristics. Understanding guerrilla marketing …

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relationship-marketing

What Is Relationship Marketing And Why It Matters In Business

Relationship marketing involves businesses and their brands forming long-term relationships with customers. The focus of relationship marketing is to increase customer loyalty and engagement through high-quality products and services. It differs from short-term processes focused solely on customer acquisition and individual sales. Understanding relationship marketing Relationship marketing starts with a business understanding their client base. …

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inbound-marketing

What Is Inbound Marketing And Why It Matters In Business

Inbound marketing is a marketing strategy designed to attract customers to a brand with content and experiences that they derive value from. Inbound marketing utilizes blogs, events, SEO, and social media to create brand awareness and attract targeted consumers. By attracting or “drawing in” a targeted audience, inbound marketing differs from outbound marketing which actively …

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influencer-marketing

What Is Influencer Marketing And Why It Matters In Business

Influencer marketing involves the marketing of products or services that leverages the popularity, expertise, or reputation of an individual. Influencer marketing is often associated with those who have large social media followings, but popularity should not be confused with influence. Influence has the power to change consumer perceptions or get their audience to do something …

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cost-leadership

Cost Leadership And Porter’s Competitive Advantage

According to Porter, there are three core strategies for competitive positioning: cost leadership, differentiation, and focus. Cost leadership is straightforward, as the player rolling this out will become the lost-cost producer in the industry. As Porter highlighted, a cost leader has to have a broad scope (and scale). Indeed, the broad scope is a key …

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affiliate-marketing

What Is Affiliate Marketing And Why It Matters In Business

Affiliate marketing describes the process whereby an affiliate earns a commission for selling the products of another person or company. Here, the affiliate is simply an individual who is motivated to promote a particular product through incentivization. The business whose product is being promoted will gain in terms of sales and marketing from affiliates. Understanding …

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porters-generic-strategies

Porter’s Generic Strategies In A Nutshell

In his book, “Competitive Advantage,” in 1985, Porter conceptualized the concept of competitive advantage, by looking at two key aspects. Industry attractiveness, and the company’s strategic positioning. The latter, according to Porter, can be achieved either via cost leadership, differentiation, or focus. Quick intro do generic strategies As Porter was trying to conceptualize and break …

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