Professor Julie N. Hennessy
Marketing Essentials
An Over-Simplified Guideto Marketing Concepts
and Buzz-Words
Overview of the Marketing Process
Analyze Marketing Opportunities– Environmental Analysis– Competitive Analysis– Consumer Analysis– Company Analysis
Implementation & Control
Select Target Markets– Market Segmentation – Targeting – Positioning
Formulate The Marketing Mix– Product Decisions – Pricing Decisions – Promotion Decisions – Distribution Decisions
MarketingResearch
Company, Consumers, Competitors & Collaborators
Consumers
Competitors Company &Collaborators
OpportunityAnalyses:
Cross-sectionalLongitudinal
Analyses:Assets, Core Competencies, Discipline
Overview of the STP Process
1. Identify segmentation bases and segment the market.
2. Develop profiles of the resulting segments.
1. Evaluate the attractiveness of each segment.
2. Select the target segment(s).
1. Identify possible positioning concepts for each segment.
2. Select, develop and communicate the chosen positioning.
Segmentation
Targeting
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 StimulationMarketing activity intended to increase demand for the product category.
• Selective Demand StimulationMarketing 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?
Evaluationof
Extension
Strength of Brand Meaning
Too weakto beeffective Interference
Branding —To Extend Or Not Extend?
Core Association New Category
Product
Relatedness
Dominance(Interference?)
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
– Value Based PricingValue = Physical Quality + Psychic Benefits
Cost + Time
Customer Value Price Cost Product
– Core Issues:• Value to Customer• Relationship to Competitors• Relationship to Product/Service cost
Pricing Decisions
• Marketing Math Issues– Break-evens– Pricing Structures through channels
• Competing on price
Hierarchy of Promotion Effects
Awareness
Adoption
Interest
Evaluation
Trial
Push vs. Pull Promotion Strategies
ConsumersTradeFirm
Push Strategy
Firm Trade Consumers
Pull Strategy
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)