Wuolah Free Marketing Fundamentals

Marketing-fundamentals-.
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Marketing Fundamentals
1º Grado en Administración de Empresas
Facultad de Ciencias Humanas, Sociales y de Comunicación

IE Universidad
Reservados todos los derechos.

No se permite la explotación económica ni la transformación de esta obra. Queda permitida la impresión en su totalidad.
Marketing fundamentals
Intermediate tests: sessions 16 and 24 ( 10% )
Final exam: 14th december at 10:00AM - 11:20AM ( 30% )
Marketing plan project: ( 40% )
Individual presentation: ( 10% )
Class participation: ( 10% )
2. INTRODUCTION TO THE MARKETING STRATEGY FRAMEWORK
Marketing is a process by which companies create value for customers and build
strong customer relationships in order to capture value from customers return
Market is the set of actual and potential buyers
Customer -Manager driven

- Serve and build long term relationships with customers
- Two way communication (e.g mobile apps, SNS)
- Satisfy customers needs
The marketing process

Create value for customers and build customer relationships
1) Understand the marketplace, customer needs and wants
2) Design a customer value-driven marketing strategy
3) Construct an integrated marketing program delivering superior value
4) Engage customers, build profitable relationships, create customer delight
Capture value from customers
5) Capture value from customers to create profits and customer equity
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Reservados todos los derechos. No se permite la explotación económica ni la transformación de esta obra. Queda permitida la impresión en su totalidad.
Marketing philosophy
- Production concept: Available, affordable products. Production and
distribution efficiency
- Product concept: Quality products. Product improvements
- Selling concept: Sales promotion-oriented. Large-scale selling and promotion
effort
- Marketing concept: Desired customer satisfaction. Needs and wants of target
market
- Societal marketing concept: Customer satisfaction. +Long-run interests of
consumer and society
The goal of marketing is to reach the right people, communicate the benefits of your
products, and thus gain and keep your customers
Marketplace and customer needs
NEEDS
- Desires that arise when a consumer's actual state does not meet ones desired
(ideal) state
- Physical needs (e.g food,clothing), social needs (e.g affection), individual
needs (e.g self expression)
WANTS
- The form human needs take as they are shaped by culture and individual
personality
- Learned manifestation of needs - Product specific needs or need satisfiers
Value Proposition
- The promise of a brand makes to its target customers that communicates

how its solutions uniquely address their specific needs
- It differentials one brand from another:
- Why should customers buy YOUR brand rather than competitors?
- Must highlight brands unique positioning
- Positioning must be relevant to target segment
- Must relate to the brands core competence
Market offering : A combination of products, services, information or experiences

offered to a market to satisfy a need or want
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Market myopia : Paying more attention to the specific products than to the benefits
and experiences produced. A mistake of focusing on existing wants and losing sight
of underlying consumer needs
Capturing customer value
● Customer lifetime value
- The value of the entire stream of purchases that the customer would
make over a lifetime of patronage
● Customer equity
- The total combined customer lifetime values of the companies entire
customers
- The ultimate goal of customer relationship management
- A measure of the future value of the company, based on its customers
- The more loyal the customers, the higher the customer equity
Customer Relationship groups
Customer relationship management
- The overall process of building and maintaining profitable customer

relationships by delivering superior customer value and satisfaction
- Customer perceived value : Difference between total customer perceived
benefits and customer cost
- Customer satisfaction : The extent to which perceived performance matches
a buyers expectation
- Customer engagement marketing :
-Fosters direct and continuous customer involvement in shaping brand
conversations, experiences and community.
-Facebook, twitter, instagram, snapchat?
- Customer generated marketing :

-Consumer to consumer exchanges
-Contents created by customers; playing an increasing role in shaping brand
experience
What is marketing
- Create Value for Customers & Build Customer Relationships

•Understand the marketplace, customer needs and wants
•Design a customer value driven marketing strategy
•Construct an integrated marketing program that delivers superior value
•Engage customers, build profitable relationships, create customer delight
- Capture Value from Customer in Return

•Capture value from customers to create profits and customer equity
•Create satisfied, loyal customers and capture customer lifetime value
3. TYPES AND SOURCES FOR MARKETING RESEARCH
Research Skills
Customer insights
-Customer insights:
- All we have to know from marketing research
- Deep understanding of customer’s needs and wants which are explicitly
stated or not
-Important but difficult to obtain because
- Customers needs and purchase notices are not always obvious
- Customers usually cant and dont tell what they want and why they want it
Marketing information system
-Marketing information system
- People, processes and assets dedicated to assessing mangers information

needs, developing the information and helping managers and decision
makers apply that information to generate and validate actionable customer
and market insights
- A good MIS balances the information users would like to have against what
they really need and what is feasible to offer
Marketing information and customer insights
Sources of marketing information
- Internal Data
-Collection of consumer and market information obtained from data sources within
the company network
-Information in the database such as…
- Sales transactions
-Website traffic
-Customer satisfaction and service records
-Can be accessed quickly, cheaper than other information sources
-Cons: Information is not specifically relevant to our research question incomplete
data or in the wrong form
- Competitive Marketing Intelligence

-Systematic collection and analysis of information about competitors and
marketplace, to improve strategic decision making
-Marketing intelligence techniques include…
-Observing consumers (my & competitors’)
-Benchmarking the competitors’ products
-Monitoring real-time social media
- Marketing research
-The systematic design, collection, analysis, and reporting of data relevant to a
specific marketing situation facing an organization
-Formal studies that can provide customer and market insights for specific marketing
situations and decisions
Type of marketing research - Research objectives
- Exploratory Research: To gather preliminary information that will help

define the problem and suggest hypotheses
- Descriptive Research:
-To describe marketing problems, situations, or markets
-To understand market potential for a product
-To capture demographics and attitudes of consumers
- Causal Research: To test hypotheses about cause and effect relationships
How to obtain marketing information
- Marketing Research
-The systematic design, collection, analysis, and reporting of data relevant to a
specific marketing situation facing an organization
-Formal studies that can provide customer and market insights for specific
marketing situations and decisions
Developing the research plan
- Outline sources of existing data

- Specify research approaches, contact methods, sampling plans, and
instruments to gather data
Data sources
Data sources and research
Secondary data
- Internal Records and Customer Database
- External Sources
-Published data source (e.g., Census)
-Standardized data source
-Internet
-Personal networks
Secondary data- limitations
Secondary data: before use
- Evaluate secondary data based on:

-Who collected the data
-Why were the data collected
-When were the data collected
-What data collected
-How were the data collected
How to conduct primary data reserach
Contact methods
- Mail questionnaires
- Telephone interviewing
- Personal interviewing
- Online Marketing Research
-Internet and mobile surveys
-Consumer tracking
Sampling plan
- Sample
-A segment of the population selected for marketing research to represent the
population
-Who will be studied?
-How many people will be studied?
-How should the people be selected?
Sampling
Why is sampling needed?
- Census
-Investigating information of every member of the entire population
-Requires a large amount of time and resources
- Any methods to collect data in a more practical, cost-effective, and

manageable way?
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Sampling
- Sample
-A subset of elements that make up the population
-Must be both accessible and representative
Sampling methods
- Sampling
-Selecting a subset of individuals from a statistical population
-Sampling Methods
- Sampling methods
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Sampling methods - Probability sampling
- Random Sampling: Every member of the population has a known probability

of being included
- Stratified Random Sampling:Random sampling after grouping the
population into segments
- Cluster Sampling: Random sampling of groups
Sampling methods - Non Probability sampling
- Convenience Sampling
-Easiest population members to obtain information, selected by the researcher
-Ex. Students, mail intercepts, physically proximate individuals
-Advantage: Minimal Effort
-Disadvantage: Non representative sample (generalisation issue)
- Judgment Sampling
-Following researchers’ judgement call to select good prospects for accurate
information
- Quota Sampling
-Selecting a prescribed number of people in each of several categories
4. QUALITATIVE RESEARCH METHODS
Research approaches - Quantitative research
Qualitative Research
- Exploratory in nature
-Used to gain an understanding of reasons, opinions, motivations, and trends
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-Provides insight into the problem, especially when there is no specific research
question
-What do people think about the product?
-Why do people like/dislike your product?
-Helps develop ideas or hypotheses for further research
- Typically conducted with smaller sample size

-Non-statistic data, requires a lot of human work, complicated, takes longer time
compared to quantitative research methods
Observation
- Conducted to obtain specific characteristics of individuals, groups, or settings.

- Non-experimental: Nothing is manipulated or controlled.
- Therefore, we cannot make any causal conclusions with this approach.
- The data can be quantitative and/or qualitative.
- Should be aware of the observer bias in interpretation (cf. Confirmation Bias).
- Pros: Can measure non- verbal behaviours and some behaviours impossible
to ask (e.g., stealing)
- Cons: Cannot answer “why”, Lack of control
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Interview
Focus group interview
- Role of moderator is crucial

-Avoid close-ended questions
-Avoid suggestive questions
-Facilitate interviewees
- Also remember that...

-People sometimes do not know why they think and behave in certain ways.
-People often generate ad-hoc reasons.
-Social desirability bias (social pressure) may influence the answers.
Research approaches - Qualitative research
Project techniques
- Research procedures designed to identify consumers’ subconscious

feelings and motivations.
- Uses ‘indirect’ methods to project consumers’ thoughts and feelings

-There is a possibility that the interpretation can be misleading.
- Frequently used techniques

-Word association
-Sentence completion
-Drawing pictures
-Third-person techniques
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Word association test
- Word association (hussey and duncombe 1999)
Brand personification
- We can also ask specific attributes toward a brand as follows:
- If the brand Audi was a person, what kind of person would it be?
-Is it she or he?
-How old is this person?
-What’s this person’s job?
-What does this person like to do?
-What does this person value?
-If this brand is a celebrity, who would it be? Why?
Qualitative research - summary
- Useful techniques for exploration

- Direct and indirect ways to measure consumers’ mind
BUT
- Challenges associated with “why”

- Less control
- To understand what changes in behaviour, we must be more systematic

-See how Changes along a selected dimension ( independent variable ) are
associated with changes in behaviour ( dependent variable ).
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5.QUANTITATIVE RESEARCH METHODS
Research approaches - Qualitative research
Quantitative research
- Providing objective & standardised measurements

-Collecting & analysing numeric data - can perform statistical analyses
-More standardised instruments
- Typically conducted with larger sample size

-Minimising researcher biases, standardised methods and statistical analyses
-Replicability, generalizability, causality
Correlation analysis
- Purpose: to examine whether a (statistical) relationship or association exists

between two variables
- Correlation (two variables moving together) does NOT imply causation

- Spurious correlation
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- Confounding variables
What is negative correlation?
- Correlation is expressed on a range from +1 to -1 (correlation coefficient, r)

-Strength: close to +1/-1 means there is a strong correlation
-Direction: positive (above 0)/negative (below 0)
Survey
- A quantitative research method to collect data from a sample of individuals

through their responses to questions.
- Can be used in descriptive research.
- Pros: Cost effective, can collect data from a large sample
- Cons: Difficult to gain in-depth responses, can NOT develop a causal
relationship
Steps to design a survey
1. Design the research objective

2. Choose survey methods: online, paper and pencil, face to face, telephone,
combined
3. Clarify research questions
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4. Develop survey question and structure the survey
- Draft (if possible, pretest it)
- Refine and revise
- Design layout and formation
Research objectives vs Research questions
- Research Objectives
-Main purpose of the research
-Ex. To explore and understand consumers’ attitudes toward Apple, including their
perceptions and preferences toward the brand and its products.
- Research Questions
-Specific inquiries to address particular aspects of the research objectives (e.g.,
satisfaction, purchase experience, willingness to recommend to others)
-Ex. What are consumers’ overall perceptions of Apple as a brand?
-Ex. What are the key features that consumers associate with Apple products?
-Ex. How do consumers perceive the level of innovation in Apple’s products
compared to
other brands?
Survey questions
- Let’s assume that we established “What are consumers’ overall perceptions of

Apple as a brand?” as a research question.
- Please rate your perception of Apple (1 = very negative -10 = very positive)
- To what extent do you agree with the statement: “Apple is a brand that I can
trust” (1 = strongly disagree -10 = strongly agree)
- Please rate your satisfaction with Apple’s customer service and support (1 =
very dissatisfied -10 = very satisfied)
Survey structure
- Question Order
-Start with easy, non-sensitive questions
-Questionnaires should flow logically-from broad, general questions
to be more specific.
-Measure demographic information at the end of the survey.
- Design and Layout

-Visually clean and appealing survey
-Use consistent formatting for question styles, fonts, and colors.
-Avoid overcrowding in space.
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Survey method
- Administration method
-Paper and pencil
-Online
-Personal interview
-Telephone / Mail
- Examples of surveys
-Demographic information (e.g., U.S. census)
-Satisfaction surveys
-YouTube surveys
Experiments
- Establish cause and effect relationships by manipulating independent

variables to determine the effect of changes on dependent variables
- Controls for factors other than independent variables (i.e., random
assignment)
- Independent Variable (denoted X):

-Factor of interest which the researcher controls or manipulates (thus the term
independent)
-Change in this variable is made by the researcher (researcher has control over the
variable)
-The “cause”
- Dependent Variable (denoted Y):

-The outcome of interest the researcher measures
-Changes as a function of the independent variable (thus the term dependent)
-Measured in response to changes in independent variable
-The “effect”
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Steps to design an experiment
1. Define the research objective

2. Establish a research hypothesis
3. Design the experiment
- Experimental group (treatment group)
- Control group
4. Define the variables, operational definitions, and measurements
- Independent variable
- Dependent variable
Research objective vs Research questions
- Research Objectives
-Main purpose of the research
-Ex. To explore and understand consumers’ attitudes toward Apple, including their
perceptions and preferences toward the brand and its products.
- Research Questions
-Specific inquiries to address particular aspects of the research objectives (e.g.,
satisfaction, purchase experience, willingness to recommend to others)
- Ex. What are consumers’ overall perceptions of Apple as a brand?
-Ex. What are the key features that consumers associate with Apple products?
-Ex. How do consumers perceive the level of innovation in Apple’s products
compared to other brands?
Research hypothesis, variables, and manipulations
- Let’s assume the research question is the same as “What are consumers’
overall perceptions of Apple as a brand?”
- Research Hypothesis
-Consumers who are exposed to testimonials from satisfied Apple consumers will
have more favourable attitudes toward the brand.
-Consumers who interact with new Apple products at Apple store will report higher
purchase intentions compared to those who do not interact with the products.
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- Consumers who interact with new Apple products at apple store will report
higher purchase intentions compared to those who do not interact with the
products
Experiment: Independent variables
- Presence vs absence manipulation
Experiment: Independent variables
- High vs Low manipulation
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Types of experiments
- Laboratory Experiments
-Independent variable is manipulated
-Measures of the dependent variable are taken in a contrived, artificial setting for the
purpose of controlling the many possible extraneous variables that may affect the
dependent variable.
- Field Experiments
-Independent variables are manipulated
-Measurements of the dependent variable are made on test units in
their natural setting
Research instruments
How to measure response
- Scaling: Process of creating and adopting a scale with descriptors on it.

- Measurement: Assigning descriptors (number or label) to consumer
characteristics according to certain pre-specified rules.
-The rules for assignment must be standardised and applied uniformly.
- Type of Scales
-Dichotomous Scale
-One-way labelled (Ranking) Scale
-N-Point (Rating) Scale
-Likert Scale
-Semantic Differential Scale
Measurement scaling
- Dichotomous scale
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- One-way labeled (Ranking) Scale
-A label scale used to measure consumers’ state of mind from one extreme to the
other extreme
- N-Point (Rating) Scale
-A number scale used to measure consumers’ state of mind.
-Usually restrict the use of numbers to the positive side and begin with 1 as the
smallest.
-Usually anchor the largest and smallest numbers to provide meaningful labels
(anchored N-point scale).
- Likert Scale
-A specific type of rating scale
-Usually use five or seven point to express how much the respondent agrees or
disagrees with a particular statement
-Assumes that the strength and intensity of an attitude is linear and the distances
between each choice option are equal
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Ranking vs Rating scale
- One-way Labeled Scale (Ranking)

-Pros: The question is straightforward and does not require much work on the
respondent’s side.
-Cons: Scale only has ordinal properties and cannot use most statistical operations.
- N-Point Scale (Rating)
-Pros: The number scale allows more statistical analyses.
-Cons: It requires the respondents to transform attitudes, opinion, or intentions to
numbers, leading to errors and more work.
Measurement scaling
- Semantic Differential Scale

-A scale contains bipolar adjectives for various features of the brand, store, or
product, and respondents indicate the location based on their judgments.
-Translates qualitative judgments of the brand, store, or product into quantitative
estimates
-Often used for measuring brand, store, or product image
How would you rate your experience with our product on the following scale?
Question wording
- Be specific
-Avoid words like “normally,” “regularly,” “usually,” “generally” if possible.
-“How often do you drink soft drinks?
[once a week / twice a week / more than three times a week]
- Avoid double-barreled question

-Do you think that cigarette smoking is bad for your health and well-being?
-Do you think overspending causes depression and financial instability?
- DO NOT ask leading questions
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-Many people avoid eating junk food because they are unhealthy. Do you eat junk
food?
- Be sensitive to issues of how you “frame” your questions

-Do you think the US should forbid public speeches against democracy?
-Do you think the US should allow public speeches against democracy?
-How fast was the car when it (_______) into the other car?
7. COMPANY AND MARKETING STRATEGY I: PORTFOLIO ANALYSIS
Analysis toolkits
Company - Wide strategic planning
- Strategic Planning
-The process of developing and maintaining a strategic fit between the
organisation’s goals and capabilities, and its changing marketing opportunities
-Adapting the firm to take opportunities in the changing environment
Defining the company mission
- Mission Statement
-Organization’s purpose
-What it wants to accomplish in the larger environment
-Should be market oriented and be defined in terms of satisfying basic customer
needs
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- Mission
-A company’s enduring commitment to provide value to its customers.
-Guided by its core purpose and values
-Now and forever
- Vision
-A compelling and forward-looking picture of where the company aspires to be in the
long term.
-What the company aims to achieve and become.
-Where does the company want to go?
A mission statement should:
1. Reflect the company’s core values and principles

2. Be meaningful and specific
3. Emphasise the company’s strengths
4. Provide a clear and concise overview of the company’s purpose and goals
5. Convey a sense of uniqueness and differentiation from competitors
Product vs Market-Oriented business
- Product-Oriented
-We sell coffee and snacks!
- Market-Oriented
-We sell the “Starbucks Experience,” one that enriches people’s lives in one moment,
one human being, one extraordinary cup of coffee at a time!
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Setting company objectives and goals
- The company needs to turn its mission into detailed supporting objectives for
each level of management
- Business Objectives
-Build profitable customer relationships.
-Allocate resources to research and development.
- Marketing Objectives
-Develop a precise, measurable marketing path.
-Expand market share.
-Foster local partnerships.
-Increase promotional efforts.
Designing the business portfolio
- The Business Portfolio

-The collection of businesses and products that make up the company.
-Identifies the most suitable match between the company’s strengths & weaknesses
and the opportunities & threats present in the external environment.
- Portfolio Analysis
-A major activity in strategic planning, involving an assessment conducted by
management to evaluate the products and businesses comprising the company.
- Strategic Business Unit (SBU)

-A profit centre focuses on product offering and marketing segment
-Has a distinct marketing plan, conducts competitor analysis, and implements
specific marketing campaigns.
-SBUs can encompass various levels within a company:
-A company division (e.g., GE Healthcare, GE Aerospace)
-A product line within a division (e.g., Samsung Galaxy series, Samsung
Galaxy Tab series)
-A single product or brand (e.g., McDonald’s Happy Meal)
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The three analysis
The BCG growth-share matrix
- Benefits of the BCG matrix

-Guidelines of Resource Allocation Decisions: Invest funds generated by mature,
successful products and businesses (Cash Cows) in promising products and
businesses in faster-growing markets (Stars, Question Marks) to drive growth.
- Limitations of the BCG matrix
-Focus on current businesses but not future planning. It lacks a forward-looking
perspective.
-Difficult to measure market share & growth, particularly in dynamic markets where
conditions change rapidly.
-Oversimplify the complex business situations
into four categories.
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The product/market expansion grid (the Ansoff matrix)
- Market penetration
-Making more sales by selling more of the existing products to the company’s current
customer base.
-Ex. Increase accessibility – extend store hours, partnering with a delivery app
- Product development
-Creating new products or modifying existing products to cater to the needs and
preferences of the current customers.
-Ex. Developing a new product line, limited-edition package design
- Market development
-Identifying and developing new markets with the company’s existing products.
-Ex. Expand into new geographical markets (e.g., different cities, countries)
-Ex. New demographic markets
- Diversification
-Expanding the business by entering entirely new markets or industries beyond the
company’s current products and markets.
-Can be achieved through starting new ventures, acquiring businesses in different
industries, or introducing entirely new product lines.
Designing the business portfolio
- Growing Up the Business?

-You can use the expansion strategies that we learned about
- When to Consider Downsizing

-It’s a decision to abandon products or markets
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-When the company has grown too fast with a lack of experience in the field
-When the market environment changes and the products/markets become less
profitable
-When some SBUs or products get older and die
8. COMPANY AND MARKETING STRATEGY II: SWOT ANALYSIS
Planning marketing: Partnering to build customer relationships
- Partnering with Other Company Departments

-Value Chain: a series of departments that carry out value creating activities to
design, produce, market, deliver, and support a firm’s products.
-Value Delivery Network: made up of the company, suppliers, distributors, and
ultimately customers who partner with each other to improve performance of the
entire system.
Marketing strategy and the marketing mix
Marketing strategy?
- The marketing logic by which the company hopes to create customer value
and achieve profitable customer relationships
- Whom to serve? (Segmentation, Targeting)
- How to serve? (Differentiation, Positioning)
- Market Segmentation
-Dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviours and who might require separate products or marketing
mixes
-Ex. By age, by income…
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- Market Segment
-A group of consumers who respond in a similar way to a given set of marketing
efforts
- Multidimensional market segmentation
-You can also segment the market with multiple criteria
-Ex. Middle-aged, health-conscious individuals or fitness enthusiastic young adults
Marketing strategy: Targeting, Positioning, Differentiation
- Marketing Targeting
-Evaluating each market segment & selecting one or more segments to enter
- Market Positioning
-Placing a product to occupy a clear, distinctive, and desirable point to win the
competing products in the minds of target consumers
- Differentiation
-Beginning of the positioning process
Marketing mix (the four P’s)
- The set of controllable, tactical marketing tools that the firm blends to produce
the response it wants in the target market
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Managing the marketing effort
The SWOT analysis
- To match the company’s strengths to attractive opportunities in the

environment while eliminating or overcoming the weaknesses and minimising
threats
Managing the marketing effort
- Market Planning – Parts of a Marketing Plan

-Choosing marketing strategies that will help the company to attain its overall
strategic objectives
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- Marketing Implementation
-Turning marketing strategies & plans into marketing actions to accomplish strategic
marketing objectives
-Addresses who, where, when, and how
-“Doing things right” (implementation) vs. “Doing the right things” (strategy)
Measuring and managing return on marketing investment
- Return on Marketing Investment (Marketing ROI)

-Net Return from a marketing investment divided by the costs of the marketing
investment
-Measurement of the profits generated by investments in marketing activities
9. COMPANY AND MARKETING STRATEGY III: ENVIRONMENT

ANALYSES
A company’s marketing environment
- Marketing Environment
-The actors and forces outside marketing
-Helps to develop effective marketing strategies and maintain successful and
profitable relationships with target customers
Microenvironment
-Factors and entities that directly interact and have a close influence on the
company’s operations, performance, and decision - making
-Affects the company’s ability to serve its customers
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The microenvironment: The company
- How internal factors within a company itself can influence marketing

strategies to achieve competitiveness
- Company Analysis
-Analysing the company’s organisational structure, resources, and capabilities
-Evaluating performance (e.g., growth rate, key performance indicators (KPIs)
-Identifying competitive advantages
-Resource allocation
Company analysis vs Marketing strategy development
- Marketing strategy frameworks

-The BCG Matrix, Ansoff Matrix, SWOT Analysis
-To analyse a company’s strategic options and overall business strategies
-To assess overall aspects of internal and external factors existing in the market
- Company analysis
-To provide insights into the internal strengths, weaknesses, and readiness of a
company to support new marketing strategies/products.
-Encompasses analysing organisational structure, corporate culture, resources and
capabilities, etc.
The microenvironment: Suppliers
- Suppliers
-Entities providing resources needed to produce a company’s goods and services.
- Supplier Analysis
-Evaluating relationships and factors associated with the company’s suppliers
-Assessing performance & risk of each supplier
The microenvironment: Marketing intermediaries
- Marketing Intermediaries
-Individuals/businesses help the company to promote, sell, and distribute its products
to consumers (final buyers)
-Play a crucial role in the distribution channel
- Type of Marketing Intermediaries

-Resellers (e.g., wholesalers, retailers, distributors)
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-Physical distribution firms: specialising in the logistics & transportation of distribution
(e.g., warehousing, transportation)
-Marketing services agencies (e.g., advertising, branding, market research)
-Financial intermediaries (e.g., payment processing, financing, insurance)
- Marketing Intermediary Analysis
-Identifying intermediaries & categorising them based on functions and roles
-Evaluating relationships with each intermediary
-Analysing performance & assessing costs to reviewing channel efficiency
-Considering alternatives
The microenvironment; Competitors
- Competitors
-Other businesses operate within the same industry and target similar customer
segments
-Direct influence on market share, pricing, product offerings, customer loyalty
- Competitor Analysis
-Identifying main competitors
-Conducting research on key competitors (e.g., products, customers, financial
performance)
-Analysing strategies – positioning, product differentiation, unique selling points
-Assessing strengths & weaknesses (e.g., SWOT analysis)
-Evaluating distribution channels, marketing efforts, customer feedback
- Identify main competitors

- Conduct quick research on your competitors
-What do they sell?
-How much do their products cost?
-What is their customer feedback and satisfaction?
-How do they differentiate themselves? What are their unique selling points?
The microenvironment: Publics
- Publics
-Groups who have an interest or impact on the organization’s ability to achieve its
objectives.
-External stakeholders who can influence or be influenced by the company’s actions
and decisions.
- Type of Publics
-Financial publics (e.g., investors)
-Media publics (e.g., journalists)
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-Government publics (e.g., policymakers)
-Citizen-action publics (e.g., NGOs)
-Internal publics (e.g., employees)
-General public
-Local publics
The microenvironment: Customers
- Customers
-Most important actors in the company’s microenvironment
-Purchase products/services from a company
-Play a crucial role in the success of any business
- Type of Customers–Dependent on Markets

-Consumer markets
-Business markets
-Reseller markets
-Government markets
-International markets
- Customer Analysis
-Understanding customer buying behaviours (e.g., motivation, decision-making
processes)
-Analysing changes in customer preferences (e.g., tracking sales data, search
trends)
-Studying unmet customer needs–gaps between the market offer and customer
needs
Macroenvironment
A Company's marketing environment
- Macro Environment
-Larger societal forces that affect the actors in the microenvironment
-Identify opportunities and threats arising from external factors
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Macro Environment: Demographic environment
- Demographic Environment
-Analysis of population characteristics
-Age, gender, ethnicity, income level, education, family structure, etc.
-Changing population shifts and density
-Helps a company to identify growth opportunities, anticipate challenges, and make
informed strategic decisions.
- Generation
-Group of people who are born and raised during a specific period of time.
-Shares common cultural, social, and historical experiences
- Other important factors for a comprehensive demographic analysis

-Gender, ethnicity
-Income levels, education levels
-Family structure, marital status
-Occupation, employment status
-Lifestyle & hobbies
Macro Environment: Economic environment
- Factors influence overall economic health and performance.

- Critical effect on consumer spending & buying behavior.
- Key Aspects to Analyze
-Economic indicators (e.g., GDP, inflation rate, interest rates)
-Market demand, consumer spending
-Industry and market trends (e.g., luxury, real estate
The Macro Environment: Natural Environment
- Physical environment and natural resources needed as inputs, that affect or

being affected by marketing activities
- Key Aspects to Analyse
37
-Natural resources–availability, sustainability (e.g., water, energy sources, raw
materials)
-Environmental regulations & laws
-Climate change
-Pollution & emission reduction
-Biodiversity & ecosystems
- Environmental Sustainability
-Developing strategies and practices that create a world economy that the planet can
support indefinitely.
-Meeting present needs without compromising the ability of future generations to
meet their needs.
The Macro Environment: Technological environment
- Forces that create new technologies, leading to new product and market
opportunities.

-Technological trends (e.g., AI, IoT, VR, blockchain)
-Digitalization & online presence (e.g., e-commerce, cloud computing)
-Automation & robotics
-Regulatory changes (e.g., data protection laws, industry-specific regulations)
The Macro Environment: Political environment
- Laws, government agencies, pressure groups that can influence or limit

various organisations and individuals in a given society.
38
-Government regulations & policies
-Political stability & changes
-Legal developments & changes
The Macro Environment: Cultural environment
- Institutions and other forces that affect a society’s basic values, perceptions,
and behaviours.
- Set of values, beliefs, norms, customs, traditions, and behaviours prevalent

within a society or community.
- Strongly affect how people think & how they consume.

-Core Beliefs–highly persistent,
-Secondary Beliefs–more open to change
-Symbolism, icons, norms
The Macro Environment: Social environment
- Beyond the written regulations and laws that cannot cover, business is
governed by social codes and rules of professional ethics

-Lifestyle trends
-Social values
-Media and communication
- Socially Responsible Behaviour

-Doing the right thing
-Seeking for long-run interests of consumers & the environment
- Cause-related Marketing (CRM)

-Partnering with nonprofit organisations or social causes to create mutual benefits.
-Supporting social/environmental cause (e.g., donating a portion of sales, organizing
awareness events
PESTLE analysis
39
- How to Conduct a PESTLE Analysis
-Comprehensive research: accurate, up-to-date information from reliable sources for
all six factors.
-Insightful summary: highlight key insights, trends, opportunities and threats; identify
implications of each factor on the company’s strategies.
-Holistic approach: consider the interplay of multiple factors, both in short/long terms.
-Avoid misinterpretation and overgeneralization.
12. CONSUMER BEHAVIOUR THEORIES
Consumer market and business market
Consumer market
- Marketers must have a thorough understanding of HOW consumers think,
feel, and act & offer clear value to each and every target consumer.
- Consumer Markets are made up of all the individuals and households that buy
or acquire goods and services for personal consumption.
Consumer behaviour
- Consumer behaviour = Selling?
- Consumer Behavior = Manipulating consumers to maximise profit?
40
- The study of how individuals, groups, and organisations select, purchase,
use, and dispose of goods, services, ideas, or experiences to satisfy their
needs and wants
- Influenced by cultural, social, and personal factors
What influences consumer behaviour?
- What affects consumer value?
Consumer characteristics affecting consumer behaviour
Social factors: Groups
41
- Membership Group
-A group that has a direct influence and to which a person belongs
- Reference Group
-A group that has a direct or indirect points of comparison or reference to influence
on group members’ attitudes or behaviour
-Exposes a person to new behaviours & lifestyles
-Creates pressures to conform →may influence product/brand choices
- Opinion leader
-Within a reference group, a person exerting social influence on others because of
skills, knowledge, personality, etc.
- Word-of-mouth (WOM) Influence

-Personal recommendations/words are more credible than ads or salespeople
- Social Networks & Influencer Marketing
Personal factors
- Age/stage in life cycle
- Occupation and economic circumstances
- Personality: A set of distinguishing human psychological traits
- Lifestyle: One’s pattern of living as expressed in his/her psychographics
- Self-concept: Actual self-concept (how people view themselves)

Ideal self-concept (how people would like to view themselves)
Brand personality traits (Aaker 1997)
- The set of human characteristics associated with a brand

- Includes personality traits & demographic characteristics that are transferred
from people associated with the brand, from advertising and from attributes of
the product itself
Psychological process - Consumer information processing
42
Exposure
- The process by which consumers (consciously or not) come into physical

contacts with marketing information
- Occurs when a marketing stimulus comes within the rage of someone’s
sensory receptors
When exposure occurs
Why does exposure matter?

- The more someone is exposed to something, the more easily the person
recognizes it, and it becomes easier to process the information, even if the
person does NOT pay explicit attention to it.
Mere exposure effect

- The more frequently we see something, the more familiar it becomes, and the
more we tend to develop a positive or neutral attitude toward it.
Psychological Process - Consumer information processing
43
Exposure vs attention
-The number of advertisement that you saw yesterday - EXPOSURE

- The number of advertisements you remember that you saw yesterday -ATTENTION
Attention
- An individual’s devoting mental activities to stimuli
- Characteristics of Attention
-Attention is selective
-Attention has limited capacity
-Attention has different intensity
- Because we are “cognitive misers,” we pay more attention when a

marketing stimulus has
-Salience: Attention is strategically allotted based on how prominent the stimulus is
-Usefulness: Attention is directed towards a stimulus that is relevant to the self or to
the current needs and active goals
-Familiarity: Attention decreases for a familiar stimulus
How to get attention?
- Novelty
- Sound
- Motion
- Attractive visuals
- Humor
- Negative valence
44
Perception
-The process by which people select, organize, and interpret information inputs
to create a meaningful picture of the world
-Deciding what a stimulus means
-Selecting, organizing, and interpreting data (cf. Gestalt psychology)
-How we view the world–Constructed reality!
- Perception is constructive
-Selective attention
-Selective distortion
-Selective retention
Factors affecting perception

- Hard-wired features of brain
-Our brains are wired to process information in specific ways that can impact how we
perceive things.
- Context
- Individual differences
-Cultural difference (The Geography of Thought; Nisbett)
- Motivations
- Expectations
-Seeing what you expect to see
-Not seeing things you don’t expect
How to influence perception?
- Branding / Positioning
- Labelling
- Colour
- Packaging
- Pricing
Are consumers always correct?

- Selective Attention
-Consumers screen out most of the stimuli that they are exposed to and selectively
pay attention to a particular input–they are cognitive misers!
- Selective Distortion
45
-Consumers subconsciously interpret information in a way that fits their
preconceptions. They often distort information to be consistent with the prior brand
and product beliefs and expectations.
Learning
- The process of acquiring new information and knowledge about products and
services for application to future behaviour.
- The change in an individual’s behaviour arising from experience and occurs

through the interplay of drives, stimuli, cues, responses, and reinforcement.
Belief and attitude
- Belief
-A descriptive thought that a person has about something based on knowledge,
opinion, and faith
- Attitude
-A person’s relatively consistent evaluations, feelings, and tendencies toward an
object or idea
-Characterised by strength and direction (positive/negative)
-Complex and multidimensional
13. CONSUMER DECISION MAKING PROCESS
The consumer decision process
1. Need recognition
- The first stage of the consumer decision process

- Recognizes a problem or need triggered by internal/external stimuli
46
- Become aware of a difference between a desired state and an actual
condition
- Arise when a consumer’s actual state does NOT meet his/her desired (ideal)
state
- Can be triggered by both:
-Internal stimuli
-External stimuli
Maslows hierarchy of needs
- Primary Needs: biogenic needs

-Physiological Needs: biological requirements for human survival ↦Ex. water, sleep,
food
-Safety & Security Needs ↦Ex. security, shelter, protection
- Secondary Needs: psychogenic needs

-Social/Belongingness Needs ↦Ex. love, friendship
-Ego/Self-esteem Needs ↦Ex. prestige, status
-Self-actualization Needs ↦Ex. self-fulfilment, enriching experiences
Motivation
- A driving force that moves or incites consumers to act
- A process that leads people to behave and give a direction to the behavior
- Has both direction and strength
47
- A motive (or drive ) is a need that is sufficiently pressing to direct the person
to seek satisfaction of the need.
2. Information search
- A process to survey and obtain appropriate data to solve a consumer problem
- Pre-purchase Search
- Ongoing Search
Two types of pre-purchase search

- Internal Search
-Deliberate retrieval of information from memory
-Based on learning, memory, attitudes
- External Search
-Acquiring information from outside sources (e.g., friends, books, magazines,
internet, etc.)
-Personal sources, commercial sources, public sources, experiential sources
- Ongoing Search
-External search activities which are independent of solving an immediate purchase
problem
-To acquire a data bank of product information
-Pleasure or just for fun
3. Evaluation of alternatives
- Using information to evaluate alternative brands in the choice set
- Consideration set
-Product or brands that consumers seriously consider and evaluate when making a
purchase
48
4. Purchase decision
- Decision about which brand to purchase
- The purchase intention may not be the purchase decision due to:
-Attitudes of others
-Unexpected situational factors
5. Post purchase behaviour

- Actions after purchase based on satisfaction/dissatisfaction
- Cognitive Dissonance
-Buyer discomfort caused by post-purchase conflict
Types of buying decision behaviour
- Involvement
-The level of interest, importance, personal relevance that a consumer attaches to a
purchase decision.
-Reflects the extent to which a consumer is willing to invest time, effort, and cognitive
resources in evaluating and making a purchase decision
49
- Habitual Buying Behaviour
-Low consumer involvement & information processing
-Quick decisions based on habit without much thought/effort
- Variety-Seeking Buyer Behavior

-Seeking for diversity and novelty–significant differences among available options
-Frequent brand switching
-Low involvement–purchase decisions are made more for the sake of variety rather
than for deeply important reasons
- Dissonance-Reducing Buying Behaviour

-Consumers may experience post-purchase dissonance or cognitive discomfort after
making a purchase decision due to the uncertainty of choice.
-High involvement with an expensive, infrequent, risky purchases with little
differences among brands
- Complex Buying Behavior

-High involvement & significant differences among brands–thorough evaluation of
multiple options before making a decision.
-Expensive, extensive information search, consideration of multiple criteria
The buyer decision products for new products
- Innovation Adoption Process

-Unfamiliarity & higher level of perceived risk associated with new products.
-The mental process from first learning about an innovation to final regular use.
50
Individual Differences in Innovativeness
-Innovators
-Early Adopters
-Early Mainstream
-Late Mainstream
-Lagging Adopters
19. PRINCIPLES OF SEGMENTATION
Customer-Driven marketing strategy
51
- Market segment
-A group of customers who share similar set of needs and wants
-Distinct needs, characteristics, behaviours → specific marketing strategies are
needed!
- Market segmentation
-Dividing a market into well defined slices
-Marketers need to identify the appropriate number and nature of market segments,
and decide which one(s) to target!
Benefits of segmentation
- To the Company
52
-Identification of valuable customers
-Targeted promotions and marketing communications
-Higher customer lifetime value (CLV)
- To the Customer
-Customised products and services
-Personalised experience
-Higher customer satisfaction
Market segmentation
- Descriptive Characteristics
-Geographic Segmentation
-Demographic Segmentation
-Psychographic Segmentation
- Behavioural Segmentation
Geographic segmentation
- Dividing the market into geographical units

-Nations, regions, states, counties, cities, neighbourhoods
Demographic segmentation
- Dividing the market with demographic variables
-Age, life-cycle stage, gender, income, occupation, education, religion, ethnicity,
generation, nationality, social class
-Popular approach as demographics are often associated with customer needs and
wants
-Easy to measure
- Age and Life-Cycle Stage Segmentation

- Gender Segmentation
- Income Segmentation
- Generation Segmentation
Psychographic segmentation
- Dividing the market into groups based on lifestyle or personality
characteristics.
-Lifestyles, personality, interests, attitudes
53
- People in the same demographic group can exhibit very different
psychographic profiles.
- Effective especially when customization of products or services is required.
VALS
- Classifying US adults into eight primary groups with 4 demographic and 35

attitudinal questions
Two main dimensions:
- Primary Motivation
-Psychological & emotional needs that drive consumer behaviour.
- Resources
-Economic & psychological resources available to individuals to assess capacity to
fulfil individuals’ primary motivations.
Behavioural Segmentation
- Dividing a market into segments based on consumers’ knowledge, attitudes,
uses, or responses to a product.
54
- Occasions
- Benefits sought
- User status
- Usage rate
- Loyalty status
Occasions
- When consumers get an idea to buy, actually make their purchase, or use the
purchased item.
- Occasion segmentation helps firms to build up product usage.
Benefits sought
- Finding the major benefits people look for in a product class, the kinds of
people who look for each benefit, and the major brands that deliver each
benefit
- Needs and benefits segmentation identifies distinct market segments with
clear marketing implications.
User status
- Nonusers, ex-users, potential users, first-time users, regular users
- Potential users group includes consumers who will become users in some life
stage/event
Usage rate
- Light, medium, heavy product users
Loyalty status
- Hard-coreLoyals: who buy only one brand all the time, help identify the
product strength
- Split Loyals: who are loyal to two to three brands, show the competitor brands
- Shifting Loyals: who shift loyalty from one brand to another
- Switchers: who show no loyalty to any brand
Segmenting consumer markets
- Using Multiple Segmentation Bases

-Combining different bases to provide a more comprehensive and cohesive view of
market and market segments
-To identify smaller, better-defined target groups
Segmenting business market
- Use many of the same variables as consumer markets
55
-Geographics, demographics (industry, company size), benefits sought, user status,
usage rate, loyalty status
- Additional variables to consider

-Operating characteristics: technologies, user/non user status, customer
capabilities
-Purchasing approaches: purchasing-function organisation, power structure,
nature of existing relationship, general purchasing policies, purchasing criteria
-Situational factors: urgency, specific application, size of order
-Personal characteristics: buyer-seller similarity, attitude toward risk, loyalty
Segmenting international markets
- Involves forming segments of consumers who have similar needs and

buying behaviours even though they are located in different countries.
-Geographic location (e.g., Western Europe, Middle East)
-Economic factors (e.g., income levels, economic development)
-Political and legal factors (e.g., type/stability of government)
-Cultural factors (e.g., common languages, religions)
- Intermarket Segmentation (Cross-Market Segmentation)

-Forming segments of consumers who have similar needs and buying behaviours
even though they are located in different countries
Requirements for effective segmentation
- MEASURABLE: The size, purchasing power, and profiles of the segments can
be measured.
- ACCESSIBLE: The market segments can be effectively reached and served.
- SUBSTANTIAL: The market segments are large or profitable enough to serve.
- DIFFERENTIABLE; The segments are conceptually distinguishable and

respond differently to different marketing mix elements and programs.
- ACTIONABLE: Effective programs can be designed for attracting and serving

the segments.
20. PRINCIPLES OF TARGETING FOR POSITIONING
Market targeting
56
- Target Market
-A set of buyers who share common needs or characteristics that the company
decides to serve.
- Market Targeting
-Evaluating Market Segment Attractiveness
-Selecting Target Market Segments
Evaluating market segments
- Segment Size and Growth

- Segment Structural Attractiveness
-Affect long-run segment attractiveness
-Competitors, new entrants, substitute products, power of buyers/suppliers
- Company Objectives and Resources
Selecting target market segments
- Choosing a targeting strategy depends on

-Company Resources
-Product Variability
-Product Life Cycle Stage
-Market Variability
-Competitor’s Marketing Strategies
Undifferentiated marketing (Mass marketing)
- Ignoring market segment differences & targeting the whole market with one
offer.
- Focuses on common needs rather than what’s different.

-Virtually no targeting, aiming for full market coverage.
- Appropriate for a market with little variability.

-Most buyers have the same tastes, purchase similar amounts, and react in a similar
manner to marketing efforts.
57
Differentiated marketing (segmented marketing)
- Targeting several different market segments and designing separate offers for
each.
- The goal is to achieve higher sales and a stronger market position.
- More expensive than undifferentiated marketing.
Concentrated marketing (Niche marketing)
- Targeting a larger share of one or a few smaller segments or niches, instead

of targeting a small share of a large market.
- Can achieve a strong market position due to a greater understanding of
consumer needs in the niches & special reputations.
- Can effectively fine-tune products, prices, and programs
Differentiated vs Concentrated marketing
- Differentiated Marketing
-Divides the overall market into different segments based on various factors.
-Targets multiple, well-defined segments within the broader market, each with unique
characteristics and preferences.
-Tailored marketing strategies based on the distinct needs of each segment.
- Concentrated Marketing
-Concentrates all marketing efforts on a single or smaller, well-defined segment(s) of

the market.
-Focuses on a very narrow, specialised customer target.
-Highly customised products, services,marketing strategies to the specific niche
Micromarketing
58
- Tailoring products and marketing programs to suit the tastes of specific
individuals and local customer segments.
- Can create highly specific actions but may drive up manufacturing and
marketing costs, potentially reducing economies of scale and causing logistic
problems.
- Local Marketing
Tailoring brands and promotion to the needs and wants of local customers.
- Individual Marketing
Tailoring products and marketing programs to the needs and preferences of
individual customers. Also known as one-to-one marketing, mass customization, and
markets-of-one marketing.
Choosing a targeting strategy
- Factors to Consider
-Company’s resources (e.g., limited resources → concentrated marketing)
-Degree of product variability (e.g., uniform → undifferentiated marketing)
-Market variability (e.g., consumers with similar tastes → undifferentiated marketing)
-Competitors’ marketing strategies
Summary - Segmentation And targeting
- Segmentation
-Identify segmentation bases and segment the market.
-Develop profiles for the resulting segments.
- Targeting
-Evaluate attractiveness of each segment.
-Select the target segments
Positioning
- The process of crafting a company’s product and brand image to establish a

unique and memorable presence in the minds of the target market.
- An effective positioning strategy serves as a guiding light for marketing efforts,
illuminating a brand’s core identity, and its distinctive approach.
- Brand Substitution Test

-A useful measure to test the effectiveness of the organisation’s positioning.
59
-Testing a marketing strategy by replacing the brand with a competing one.
↳If a brand is well-positioned, the marketing activity should not yield the same results
in the marketplace when a different brand is used.
- Customer-focused Value Proposition

-A result of successful positioning.
-A reason why the target market should buy this product.
-Captures how a product’s key benefits deliver value by satisfying customers needs.
Choosing a competitive frame of reference
- Competitive Frame of Reference (FOR)

-Clarifying a product’s value proposition and positioning the brand within the market.
-Defines how a brand competes with others and what aspects should be
emphasised.
- Identifying Competitors
-Category Membership: The products or set of products that directly compete with a
brand and function as close substitutes.
-Competitors: Companies that address the same customer needs.
- Analysing Competitors
-Gathering information about each competitor’s real and perceived strengths and
weaknesses (cf. SWOT analysis).
Differentiation and positioning
- Differentiation
-Identifying a set of potential competitive advantages to differentiate.
- Types of Differentiation
-Product Differentiation: unique product characteristics, performance, design
-Service Differentiation: exceptional customer services—pre-sales, post-sales,
personalization
-People Differentiation: hiring and training exceptional employees
-Image Differentiation: unique brand image, identity, symbols, colors
-Channel Differentiation: unique distribution channels and coverage
60
Points of parity and points of difference
- Points of parity (POP)
-“Must-have”characteristics or attributes that a brand needs to possess to be

considered a legitimate competitor in a specific product category or market.
-The reasons consumers add a brand to their consideration set. Establish a baseline
level of competitiveness.
-NOT brand differentiators, should NOT be the primary focus of advertising

messages.
-Necessary but insufficient conditions–brands should have their POPs covered

before highlighting their competitive advantages.
- Points of differentiation(POD)
-Attributes or characteristics that make a brand unique and set it apart from the
competition.
-Attributes strongly associated with a brand and are positively evaluated by

consumers.
-Answer the question of “why” consumers should choose a particular brand over its
competitors.
61
-PODs are a critical part of a brand’s value proposition and form the basis for its
competitive advantage.
EXAMPLE (automobiles industry):
22. CRAFTING POSITIONING
Frame of reference
- Clarifying a product’s value proposition and positioning the brand within the
market.
- Defines how a brand competes with others and what aspects should be
emphasised.
- Provides the context for positioning: the market or context in which you
choose to position your brand
Positioning
- The process of crafting a company’s product and brand image to establish a

unique and memorable presence in the minds of the target market.
- An effective positioning strategy serves as a guiding light for marketing efforts,
illuminating a brand’s core identity, and its distinctive approach.
Value proposition
- The promise of a brand makes to its target customers that communicates how
its solutions uniquely address their specific needs
-It differentiates one brand from another:
↳Why should customers buy YOUR brand rather than a competitor’s?
-Must highlight brand’s unique positioning
-Positioning must be relevant to target segment
-Must relate to the brand’s core competence
62
Winning value proposition
- The full mix of benefits upon which a brand is positioned
Perceptual map (product positioning map)
- Shows consumers’ perceptions of competing brands and products based on

important buying dimensions.
- A two-dimensional graph with a horizontal axis (X) and a vertical axis (Y).
Each axis consists of a pair of opposite attributes at each end.
- Considering the most important/significant attributes, you have to decide the
two axes.
- Then, you have to investigate consumers’ evaluations of each brand.
E.G:
63
Values of perceptual maps
- Repositioning strategies
- Identifying opportunities
- Me-too products
- Competing products
Spiderweb Positioning Map
- Also know as a radar chart or a spider chart

- A visual representation to compare multiple attributes for different brands
64
Positioning statement
- A brief and concise description of who your target group is and what your
competitive advantage is over the competition.
- Summarises company or brand positioning.
- Must-Do’s:
-Be simple and easy to remember.
-Be clearly oriented toward the target group.•
-Contain a value proposition that is credible, relevant, and unique for the target
group.
-Include a clear frame of reference.
-Be flexible enough to accommodate potential changes.
How to write a positioning statement
- Target Audience
-Specific audience or market segment that the statement is targeting.
- Frame of Reference
-The category or industry in which your brand operates and who you want to
compete with.
- Value Proposition / Unique Selling Proposition (USP)

-Unique features, benefits, or attributes that set your brand apart from competitors.
- Reasons to Believe
-Supporting evidence or reasons that back up the brand’s claim and make it credible.
Positioning statement
- For [Target Audience] who [Target Market Needs] the [Brand] is a [Frame of
Reference] that offers [Unique Selling Proposition] because of [Reason to
Believe].
E.G:
- For individuals looking for high-quality beverages,TARGET AUDIENCE
BRAND offers a wide range of the most refreshing options FRAME OF
REFERENCE — each creates a positive experience for customers when they
enjoy a BRAND brand drink. Unlike other beverage options, BRAND products
inspire happiness and make a positive difference in customers' lives UNIQUE
SELLING PROPOSITION and the brand is intensely focused on the needs of
consumers and customers. REASONS TO BELIEVE
- For consumers who want to purchase a wide range of products online with
quick delivery, BRAND provides a one-stop online shopping site. BRAND sets
65
itself apart from other online retailers with its customer obsession, passion for
innovation, and commitment to operational excellence.
Communicating and delivering the chosen position
- All the company’s marketing mix (4P) efforts must align with and support the
chosen positioning strategy.
- Choosing the position is often straightforward, but implementing it can be
challenging.
-Establishing or changing a position typically requires a significant amount of time.
- Consistent performance and communication are essential for maintaining the

position.
-The company must continually monitor and adapt its position over time to align with
changes in consumer needs and competitors’ strategies.
Summary: STP as a marketing strategy
- Segmentation
-Identify segmentation bases and segment the market
-Develop profiles of resulting segments
- Targeting
-Evaluate the attractiveness of each segment.
-Select target segments.
- Positioning
-Use a perceptual map to identify current positions.
-Identify positioning concepts for each target segment.
-Select, develop, and communicate the chosen concept.
66

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Marketing-fundamentals-.

1º Grado en Administración de Empresas

Facultad de Ciencias Humanas, Sociales y de Comunicación

Reservados todos los derechos.

2. INTRODUCTION TO THE MARKETING STRATEGY FRAMEWORK

Market is the set of actual and potential buyers

Customer -Manager driven

The marketing process

Marketplace and customer needs

- The promise of a brand makes to its target customers that communicates

Market offering : A combination of products, services, information or experiences

Capturing customer value

Customer Relationship groups

- The overall process of building and maintaining profitable customer

- Customer generated marketing :

- Create Value for Customers & Build Customer Relationships

- Capture Value from Customer in Return

3. TYPES AND SOURCES FOR MARKETING RESEARCH

-Important but difficult to obtain because

Marketing information system

-Marketing information system

- People, processes and assets dedicated to assessing mangers information

Marketing information and customer insights

Sources of marketing information

Sources of marketing information

- Competitive Marketing Intelligence

- Exploratory Research: To gather preliminary information that will help

How to obtain marketing information

Developing the research plan

- Outline sources of existing data

- Internal Records and Customer Database

Secondary data: before use

- Evaluate secondary data based on:

How to conduct primary data reserach

Why is sampling needed?

- Any methods to collect data in a more practical, cost-effective, and

- Random Sampling: Every member of the population has a known probability

Sampling methods - Non Probability sampling

4. QUALITATIVE RESEARCH METHODS

Research approaches - Quantitative research

- Typically conducted with smaller sample size

- Conducted to obtain specific characteristics of individuals, groups, or settings.

- Role of moderator is crucial

- Also remember that...

Research approaches - Qualitative research

- Research procedures designed to identify consumers’ subconscious

- Uses ‘indirect’ methods to project consumers’ thoughts and feelings

- Frequently used techniques

- Word association (hussey and duncombe 1999)

- We can also ask specific attributes toward a brand as follows:

Qualitative research - summary

- Useful techniques for exploration

- Challenges associated with “why”

- To understand what changes in behaviour, we must be more systematic

Research approaches - Qualitative research

- Providing objective & standardised measurements

- Typically conducted with larger sample size

- Purpose: to examine whether a (statistical) relationship or association exists

- Correlation (two variables moving together) does NOT imply causation

What is negative correlation?

- Correlation is expressed on a range from +1 to -1 (correlation coefficient, r)

- A quantitative research method to collect data from a sample of individuals

Steps to design a survey

1. Design the research objective