From purchase decision process to conversion: marketing terms and abbreviations with K
What exactly is this key account management? What is cannibalization all about? And are you already familiar with the click rate, the purchase decision process and key performance indicators? In our glossary, we explain important marketing terms that all start with the letter K:
Marketing glossary: A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z
- Purchase decision process
The purchase decision process describes the entire course of considerations and actions that lead to the purchase of a product. This process begins when a person recognizes a specific problem that they want to solve. This could be, for example, the need for new shoes or the desire to go on a trip. This is followed by the perception of the product, its selection and the decision to purchase it. Habits, incentives to buy, alternative offers, costs and risks also play a role in the purchasing decision process.
▶ Recommended video training: Target group identification & buying persona
▶ Also relevant for the purchasing decision process: UX & customer journey
- Cannibalization
Cannibalization is when a company markets similar products at different prices at the same time. If customers do not recognize a clear advantage between the cheap and the premium version of the product, they will sooner or later choose the cheaper one. The more expensive product is thus "eaten" by the cheaper one - as in cannibalism - and displaced.
- Category pages
Category pages are an integral part of an online store. They offer customers a preview of products that belong to a specific category. The category page presents the associated products as attractively and clearly structured as possible. The aim is to improve the shopping experience and ensure the successful purchase of a specific product. Well-structured category pages also improve the evaluation by search engines and can lead to a better ranking.
▶ Video tutorial: Category and product pages and filter options
- Key account management
A company's key account management is responsible for the intensive and exclusive support of its most important customers. These customers make a decisive contribution to the company's success. They are called key accounts . Key account management is responsible for establishing, maintaining and developing these customer relationships. Key account management is usually an independently operating department within the company. It works closely with sales, marketing and product management.
- Key Performance Indicator (KPI)
Key Performance Indicators - KPIs for short - are performance indicators that can be used to measure the success of certain measures in a company. They can relate to the company as a whole, to specific units or to targeted systems. Examples of KPIs include financial key figures such as net sales from existing customers, customer key figures such as the cost of acquisition services, HR key figures such as employee satisfaction or marketing key figures such as the number of followers or subscribers on social media channels.
- Keyword
Keywords are single or multiple words that users enter into search engines such as Google in order to be shown relevant websites. These search terms are contained in the texts of the websites displayed. This allows the search engine to identify them. Depending on how well these keywords have been placed on the website in terms of search engine optimization, they have a decisive influence on its ranking in the search engine. Keywords are also used in online marketing. Google Ads are one example of this. They are used to display suitable advertisements in addition to the actual search results.
▶ Related topic: Local SEO - high visibility thanks to Google My Business
▶ Video training on increasing reach through SEO for YouTube
- Click rate
The click-through rate compares the number of clicks on a digital advertising medium with the frequency with which it is displayed. Example: If the ad is displayed 100 times and a user clicks on it during this time, the click-through rate is 1%. In this way, the success of a digital advertising measure can be measured.
- Conversion
Conversion means change. In marketing, this means that an interested visitor to a website turns into an active visitor - e.g. by signing up for a newsletter, clicking on a link, downloading something or making a purchase. The number of conversions is used to calculate the conversion rate.
Marketing terms K: keyword, click rate, cannibalization
