Marketing Essentials

A Simplified Guide
to Marketing Concepts
and Buzz-Words
Professor Julie N. Hennessy

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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

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Marketing
Research

Company, Consumers,
Competitors & Collaborators
Analyses:
Cross-sectional
Longitudinal

Consumers

Competitors

Opportunity

Company &
Collaborators

Analyses:
Assets, Core Competencies, Discipline
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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.
2. Select the target segment(s).
1. Identify possible positioning concepts for each
segment.
2. Select, develop and communicate the chosen
positioning.

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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

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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/point
of 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 for
one 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 current
customers
Develop new products for new markets

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Branding

Evaluation
of
Extension
Too weak
to be
effective

Interference

Strength of Brand Meaning

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Branding
To Extend Or Not Extend?
Relatedness

Core Association

New Category

Dominance
(Interference?)

Product
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 for
Leveraging Master Brands Marketing Research, Sept 1992, 32-43.

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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

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Product

Pricing Decisions
Marketing Math Issues
Break-evens
Pricing Structures through channels

Competing on price

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Hierarchy of Promotion Effects

Awareness
Interest
Evaluation
Trial
Adoption
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Push vs. Pull Promotion Strategies

Push Strategy
Firm

Trade

Consumers

Pull Strategy
Firm

Trade

Consumers

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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)

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