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Professor Julie N. Hennessy

Marketing Essentials

A Simplified Guideto Marketing Conceptsand Buzz-Words

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Overview of the Marketing

ProcessAnalyze 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

Marketing

Research

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Company, Consumers,

Competitors & Collaborators

Consumers

Competitors Company &

Collaborators

OpportunityAnalyses:

Cross-sectional

Longitudinal

Analyses:

Assets, Core Competencies, Discipline

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Overview of the STP Process1. 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 eachsegment.

2. Select, develop and communicate the chosenpositioning.

Segmentation

Targeting

Positioning

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What Is a Positioning? Positioning is the centerpiece of Marketing

Strategy

The positioning identifies the way a firm wantscustomers to think about their product/brand to

maximize their product interest

The positioning defines how the product will

be differentiated to compete in an increasinglycompetitive marketplace

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A Typical Positioning Has

Several Pieces...

Actual Product or Service Description

Target Benefits

Competitive Context and Advantage

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Summarized in this Format

To (target market), X is the brand of

(frame of reference) that (benefit/pointof difference) because of (product

attribute)

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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 forone organizations product or services over those

of competitors.

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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 currentcustomers

Develop new products for new markets

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Branding

To Extend Or Not Extend?

Evaluation

ofExtension

Strength of Brand Meaning

Too weakto be

effective Interference

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Branding

To Extend Or Not Extend?

Core Association New Category

Product

Relatedness

Dominance(Interference?)

New associations to be learned depend on : Consumers motivation / involvement

Manufacturers communication effort

Source: Adapted from Farquhar, P., J. Han, P. Herr, and Y. Ijiri Strategies forLeveraging Master Brands Marketing Research, Sept 1992, 32-43.

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Pricing DecisionsMarketing 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

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Pricing Decisions Marketing Math Issues

Break-evens

Pricing Structures through channels

Competing on price

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Hierarchy of Promotion Effects

Awareness

Adoption

Interest

Evaluation

Trial

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Push vs. Pull Promotion Strategies

ConsumersTradeFirm

Push Strategy

Firm Trade Consumers

Pull Strategy

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Definition & ObjectivesMarketing Channels are sets of interdependentorganizations involved in the process of making a

product or service available for consumption or useto the final consumer. (Stern, El-Ansary & Coughlan 1996)

Distribution Channels aim at making

available to the consumer: The RightProduct(Assortment Utility)At the Right Place(Place Utility)At the RightTime(Time Utility)