Download Marketing Essentials

Marketing Essentials
A Simplified Guide
to Marketing Concepts
and Buzz-Words
Professor Julie N. Hennessy
Overview of the Marketing
Process
Analyze Marketing Opportunities
– Environmental Analysis
– Competitive Analysis
– Consumer Analysis
– Company Analysis
Select Target Markets
– Market Segmentation
– Targeting
– Positioning
Formulate The Marketing Mix
– Product Decisions
– Pricing Decisions
– Promotion Decisions
– Distribution Decisions
Implementation & Control
Marketing
Research
Company, Consumers,
Competitors & Collaborators
Analyses:
Cross-sectional
Longitudinal
Consumers
Competitors
Opportunity
Company &
Collaborators
Analyses:
Assets, Core Competencies, Discipline
Overview of the STP Process
1. Identify segmentation bases and segment the
market.
Segmentation
2. Develop profiles of the resulting segments.
1. Evaluate the attractiveness of each segment.
Targeting
2. Select the target segment(s).
1. Identify possible positioning concepts for each
segment.
2. Select, develop and communicate the chosen
positioning.
Positioning
What Is a Positioning?
• Positioning is the centerpiece of Marketing
Strategy
– The positioning identifies the way a firm wants
customers to think about their product/brand to
maximize their product interest
– The positioning defines how the product will
be differentiated to compete in an increasingly
competitive marketplace
A Typical Positioning Has Several
Pieces...
• Actual Product or Service Description
• Target
• Benefits
• Competitive Context and Advantage
Summarized in this Format
• To (target market), X is the brand of
(frame of reference) that (benefit/point
of difference) because of (product
attribute)
Primary Demand Vs. Selective
Demand Stimulation
• Primary Demand Stimulation
Marketing activity intended to increase demand for
the product category.
• Selective Demand Stimulation
Marketing activity intended to increase demand for
one organization’s product or services over those
of competitors.
The Path of Least Resistance
• Secure and solidify your relationships with
your existing customers
• Attract competitors’ customers
• Encourage non-users to use the product
category
• Develop new products for current
customers
• Develop new products for new markets
Branding —
To Extend Or Not Extend?
Evaluation
of
Extension
Too weak
to be
effective
Interference
Strength of Brand Meaning
Branding —
To Extend Or Not Extend?
Relatedness
Core Association
New Category
Dominance
(Interference?)
Product
New associations to be learned depend on :
• Consumer’s motivation / involvement
• Manufacturer’s communication effort
Source: Adapted from Farquhar, P., J. Han, P. Herr, and Y. Ijiri “Strategies for
Leveraging Master Brands” Marketing Research, Sept 1992, 32-43.
Pricing Decisions
Marketing Approach
Customer
Value
Price
Cost
– Value Based Pricing
Value = Physical Quality + Psychic Benefits
Cost + Time
– Core Issues:
• Value to Customer
• Relationship to Competitors
• Relationship to Product/Service cost
Product
Pricing Decisions
• Marketing Math Issues
– Break-evens
– Pricing Structures through channels
• Competing on price
Hierarchy of Promotion Effects
Awareness
Interest
Evaluation
Trial
Adoption
Push vs. Pull Promotion Strategies
Push Strategy
Firm
Trade
Consumers
Pull Strategy
Firm
Trade
Consumers
Definition & Objectives
Marketing Channels are sets of interdependent
organizations involved in the process of making a
product or service available for consumption or use
to the final consumer. (Stern, El-Ansary & Coughlan 1996)
Distribution Channels aim at making
available to the consumer:
• The Right Product (Assortment Utility)
• At the Right Place (Place Utility)
• At the Right Time (Time Utility)