commoditization
The process by which a product becomes so common that customers see no difference between brands and choose on price alone.
Example: Commoditization forced smartphone makers to compete mainly on price.
C222 words · Proficient
Marketing & Sales vocabulary — C2
Expert marketing vocabulary for competitive strategy, including product differentiation, gamification, dynamic pricing and the network effect that gives a brand its moat.
22 questions
Words in this set
22saturation
/ˌsætʃərˈeɪʃən/The point at which a market has as many buyers as it can hold, leaving little room to grow.
Example:
Market saturation made it hard to find new customers.
differentiation
/dɪfərˌɛnʃiˈeɪʃən/The strategy of making a product stand out from competitors in a meaningful way.
Example:
Design became the brand's main form of differentiation.
premiumization
The strategy of moving a brand upmarket by offering pricier, higher-quality versions of a product.
Example:
Premiumization let the coffee chain charge more for better beans.
gamification
The use of game-like features, such as points or badges, to encourage customer engagement.
Example:
Gamification kept users opening the app every day.
personalization
/ˌpɜrsənələˈzeɪʃən/Tailoring marketing content or offers to an individual customer's preferences.
Example:
Personalization meant every email showed different products.
dynamic pricing
A strategy of changing prices automatically based on demand, timing or competition.
Example:
Dynamic pricing made the tickets more expensive close to the show.
halo effect
When liking one product or feature makes people think more positively of everything else from that brand.
Example:
The halo effect from one hit product boosted sales across the whole range.
greenwashing
Making a company or product appear more environmentally friendly than it really is.
Example:
Critics accused the airline of greenwashing with its vague carbon claims.
native advertising
Paid advertising content made to look like the normal articles or posts on a platform.
Example:
The sponsored article was a piece of native advertising for a shoe brand.
category creation
Persuading the market that a new kind of product exists.
Example:
Category creation is expensive and the imitators pay none of it.
moat
/moʊt/A lasting advantage that competitors cannot easily copy.
Example:
Their moat was the distribution network, not the product.
first-mover advantage
The benefit of entering a market before anyone else.
Example:
First-mover advantage lasted about eleven months.
network effect
The way a product becomes more valuable as more people use it.
Example:
The network effect made switching almost impossible after year three.
cannibalisation
New sales taken from your own existing products.
Example:
Half the launch volume was cannibalisation and the report said growth.
astroturf campaign
A campaign made to look like spontaneous public support.
Example:
The petition turned out to be an astroturf campaign run from one office.
dark pattern
Design that tricks users into doing something they did not intend.
Example:
The unsubscribe page was a dark pattern from top to bottom.
surveillance pricing
Charging different people different prices based on their data.
Example:
Surveillance pricing is legal, unpopular and almost undetectable.
brand dilution
Weakening a brand by extending it too far.
Example:
Nine product lines produced textbook brand dilution.
share of search
How often people look for your brand compared with rivals.
Example:
Share of search predicted the sales figures four months out.
greenhushing
Staying quiet about environmental efforts to avoid scrutiny.
Example:
Greenhushing replaced greenwashing the moment the regulator woke up.
loss leader
Something sold below cost to bring customers in.
Example:
The chicken was a loss leader and everyone knew it but the accountants.
