A Simplified Guide to Marketing Concepts and Buzz-Words

1. Marketing Essentials A Simplified Guideto Marketing Conceptsand Buzz-Words Professor Julie N. Hennessy

2. Overview of the Marketing Process • Analyze Marketing Opportunities • Environmental Analysis • Competitive Analysis • Consumer Analysis • Company Analysis • Select Target Markets • Market Segmentation • Targeting • Positioning Marketing Research • Formulate The Marketing Mix • Product Decisions • Pricing Decisions • Promotion Decisions • Distribution Decisions Implementation & Control

3. Company, Consumers, Competitors & Collaborators Consumers Analyses: Cross-sectional Longitudinal Opportunity Company & Collaborators Competitors Analyses: Assets, Core Competencies, Discipline

4. Overview of the STP Process 1. Identify segmentation bases and segment the market. 2. Develop profiles of the resulting segments. Segmentation Targeting 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. Positioning

5. 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

6. A Typical Positioning Has Several Pieces... • Actual Product or Service Description • Target • Benefits • Competitive Context and Advantage

7. Summarized in this Format • To (target market), X is the brand of (frame of reference) that (benefit/point of difference) because of (product attribute)

8. 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.

9. 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

10. Branding —To Extend Or Not Extend? Evaluation of Extension Too weak to be effective Interference Strength of Brand Meaning

11. Branding —To Extend Or Not Extend? Relatedness New Category Core Association 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.

12. Pricing Decisions Marketing Approach Customer Value Price Cost Product • Value Based Pricing • Value = Physical Quality + Psychic Benefits • Cost + Time • Core Issues: • Value to Customer • Relationship to Competitors • Relationship to Product/Service cost

13. Pricing Decisions • Marketing Math Issues • Break-evens • Pricing Structures through channels • Competing on price

14. Hierarchy of Promotion Effects Awareness Interest Evaluation Trial Adoption

15. Push vs. Pull Promotion Strategies Push Strategy Firm Trade Consumers Pull Strategy Trade Consumers Firm

16. 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) Definition & Objectives • Distribution Channels aim at making available to the consumer: • The RightProduct (Assortment Utility) • At the Right Place (Place Utility) • At the RightTime (Time Utility)