Definitions on Product Marketing

Comparative Advertising

Intro

Comparative advertising is a type of advertising that directly compares one brand's products or services to those of another brand. This can be done through a variety of methods, such as showing the two products side by side and highlighting the differences, or by directly mentioning the other brand in the ad. Comparative advertising is often used to demonstrate how a particular product or service is superior to a competitor's offering, and is a common tactic in highly competitive markets. It can be an effective way to differentiate a brand and persuade consumers to choose it over others. However, it can also be controversial if the comparisons are misleading or inaccurate.

Cost-Based Pricing

Intro

Cost-based pricing is a pricing strategy in which the price of a product or service is determined by adding a markup to the cost of producing or delivering it. This approach takes into account the various costs associated with the product or service, such as materials, labor, and overhead, and adds a profit margin to determine the final price. Cost-based pricing is a common approach in businesses that operate on thin margins or have a high level of competition, as it allows them to set prices that are competitive while still covering their costs and generating a profit. However, it can be challenging to determine the appropriate markup, and may not always result in the most profitable or competitive pricing strategy.

Customer Loyalty

Intro

Customer loyalty refers to a customer's willingness to continue doing business with a particular company or brand over time. It is a measure of the degree to which customers are committed to a company, and is typically based on factors such as satisfaction with the company's products or services, the quality of the customer experience, and the overall value of the company's offering. Companies that are able to cultivate customer loyalty can enjoy a number of benefits, such as increased repeat business, improved customer satisfaction, and greater customer advocacy.

Direct Competition

Intro

In marketing, direct competition refers to the competition between companies that offer similar products or services to the same target market. These companies are considered to be direct competitors because they are competing for the same customers and their products or services are substitutes for one another. Direct competition is an important concept in marketing because it helps companies to understand the market and develop strategies to differentiate themselves from their competitors. This can include things like pricing, branding, and product development.

Serviced Available Market (SAM)

Intro

Serviced Available Market (SAM) represents the portion of the Total Addressable Market (TAM) that a business can realistically target and serve with its current products, services, business model, and operational reach. It refines the broad TAM figure into a more practical measure of market opportunity, based on real-world constraints such as geography, regulations, product fit, and distribution capabilities.

Share of Market (SOM)

Intro

Share of Market (SOM) is a marketing and business metric that represents the percentage of total market sales or revenue that a company captures within a defined market. It reflects a brand’s actual performance relative to competitors and is a key indicator of competitive strength, market penetration, and growth potential.