SESSION 2 CUSTOMER-CENTRIC MARKETING

HISTORY OF 7Ps MRKT MIX STRATEGY - Focuses on customer needs & interests
- Big percentage of revenue and budget is in - Uses intuition, common sense, & data on
marketing of many industries customer behavior
- Companies invest in tools to tediously plan, - Customer: “reward & know me, anticipate my
execute, & eval mrkt strategies effectively needs, make my life simple” (i.e. Cetaphil)
MARKETING MIX HUMAN-CENTRIC MARKETING
- Made in 1940, by Prof. Neil Borden of Advert - See & connect w customers as people
in Harvard Grad School of Buss Ad. - Allows honest & personal relationships btwn
- Inspired James Culliton, in 1948 had idea of customers, salespersons, & everyone in the
mrkt mix ingredient. company
- Clarified by other authors & now
known as Marketing Mix TRAD. MRKT CO-EXISTING W DIGITAL MRKT
- “Set of mrkt tools that firm uses to pursue
mrkt obj in the target marketing”
- Borden (1964), making a mrkt prog that fits
firm’s needs → mrkt manager weighs
behavioral forces & juggle mrkt elements,
focusing on resources that they will work w/
4Ps OF MARKETING
- McCarthy made the idea ->made popular by
Rafiq and Ahmed

- 1st framework of mrkt mix, &

widely-accepted & used in decision-making
BOOMS & BITNER’S 7Ps (1981)
- People -> represents the primary role of
Human Resources
- Process -> to distinguish services from prdts
- Physical Envi/Evidence -> how surroundings
affect customer & employee behavior
- Many researches use this as general
framework than 4Ps
- has wider scope of application
- Has strategies for service marketing
- High degree of acceptance as
framework in decision-making
- For direct application & theory HUMAN CHARACTERISTICS OF BRANDS
building > influences customers through DIGITAL MARKETING

STORYTELLING MARKETING
- Narratives to communicate a message
- Make viewers feel smth to inspire them to act
- Helps customers understand why to care
about smth & humanizes brand
PRODUCT-CENTRIC MARKETING
- Focus on prdt details above all else, including
customer’s needs (i.e. Disney, Coca-Cola)
TECHNOLOGY FOR HUMANITY STRATEGY: Plan of action to achieve a goal
- Kotler, using tech to create, communicate, & MARKETING STRATEGY
enhance value through out customer journey - Long-term, forward looking approach to plan
- Now customers want more and more features & achieve sustainable competitive advantage
COMPETITIVE ADVANTAGE
SESSION 2A - What puts a company in a favorable/ superior
CONCEPT OF A “MARKET” buss position
- Concept of exchange & relationships 1. Attain a position of competitive advantage
- Bringing prdt to the market 2. Enhance firm’s perf in comparison to its
- Regular gathering of ppl for purchase & sale competitors
of provisions (providing smth for use),
livestock, & other commodities (agri prdts,
valuable things)
- Where commercial dealings are done
MARKETPLACE: Open place for markets/ public sales
MARKETSPACE: Digital place (i.e. online retailer)
META MARKET: Grp of complimentary (related) prdt &
services from diverse set of industries
MARKET SIZE: Total volume of market
MARKETING
- Art & science of choosing & building
profitable relationships w target market
- Art & science strength e/o
- create value for customers & build strong
relationships to capture value from customers
- Selling & advertising are the main actions
- Allows acceptance of new prdt, & enhance
existing ones MARKETING: CUSTOMER ANALYSIS
> ART OF MARKETING - Identity & evaluate distinguishing
- Create, appreciate, & invite change in mindset characteristics of a grp of customers
- Creating the demand (action) - Know the needs, purchase behavior, value
- Develop brand with creativity & artistic orientation, & motivations
sensibility - For segmentation (dividing market
> SCIENCE OF MARKETING into subsets of customers with
- Measures & analyzes common characteristics. 4 pillars to
- Predicts when & why demand rises or falls define ideal customer profile (ICP)
- Determine reach & effectiveness of the brand → demographic, psychographic,
THE GOAL geographic and behavioral)
- Know you customers MARKETING: COMPETITOR ANALYSIS
- will help buss get bigger - Know competitors & evaluate their strats,
- Helps buss properly give good strengths, & weakness (relative to your
service → Strong Customer company)
Relationship + Word-of-Mouth
Recommendation ENTIRE ORG IS RESPONSIBLE FOR MARKETING
- Prdt/service fits customer & sells itself > Since it affects every aspect of customer experience
- Make the selling almost
“unnecessary’ WHAT IS MARKETED
- Capture customer value 1. PRODUCT
- “NOT create need, but INFLUENCE A WANT” 2. SERVICE: airlines, fast-food resto (mix of prdt
- Good planning & execution using advanced & service)
tools & techniques → Good Mrkt is no 3. PEOPLE: Artists, musicians, CEOs
accident
 4. PLACES: cities, nations, to attract tourists, - needs clear plan, vision, on how customers &
investors, headquarters market will shape prdt’s direction
5. EVENTS - Quality, packaging, brand name, R&D, PLC,
6. EXPERIENCES: create, stage & market experi. warranties & services, customer services
7. PROPERTIES: intangible rights of ownership - Executives & stakeholders should know how
to either real property/estate or fin property product will achieve high-level buss objectives
(stocks, bonds). Are bought & sold 1. VISION: market opportunity, target
8. ORGS: build favorable image, boost public customers, positioning & competitive analysis
image & compete for funds (i.e. Red Cross) > who are the customers? needs? How to
9. INFO: what books, schools produce, market & execute unique offering?
distribute at a $ to parents, students, 2. GOALS: S.M.A.R.T (specific, measurable,
communities achievable, relevant, time-bound)
10. IDEAS: whats behind every market offering > what to achieve next month? year?
(i.e. What happens in vegas, stays in vegas) 3. INITIATIVES: high-level efforts used to
11. CUSTOMER VALUE (CV): customer’s achieve goals (i.e. perf improvements, better
satisfaction towards a service/prdt reporting, expand intl.)
a. Low Cv: perf. & customer experience
are lower than expectations PRODUCT DIFFERENTIATION FACTORS
b. Satisfaction: perf. & experience 1. PRDT FORM: size, shape, structure
meet expectations 2. “ FEATURES: diff features that work w basic
c. Delighted: perf & experience exceed function
expectations 3. CUSTOMIZATION: helps meet customer
ACTUAL VALUE: Cost of producing & distributing prdt requirement
PERCEIVED VALUE: what customer thinks its worth 4. PERFORMANCE QUALITY: lvl where prdt
> BRAND NAME: vital role in perceived value of prdt main characteristic operate
- Well known brand = higher perceived value 5. CONFORMANCE QUALITY: buyers expect all
EXCHANGE: getting smth by offering smth in return units of the prdt are the same
RELATIONSHIP: strong relationship w customers is 6. DURABILITY
goal of marketers 7. RELIABILITY: probability that smth doesn’t
fail within a certain period
“MARKETING OCCURS WHEN PPL DECIDE TO SATISFY 8. REPAIRABILITY: ease of fixing
NEEDS & WANTS THROUGH EXCHANGE 9. STYLE: look & feel
RELATIONSHIPS” 10. DESIGN: differentiates & positions the brand

CUSTOMER LIFETIME VALUE SERVICE DIFFERENTIATION

- Value of entire stream of purchases that 1. ORDERING EASE: ease ordering from
customer will make over a lifetime company
NEW MARKETING LANDSCAPE - DIGITAL AGE 2. DELIVERY
- Tech boom (comp, telecommunications, info, 3. INSTALLATION
transpo, etc.) impacted how marketers 4. CUSTOMER TRAINING: prdt demos (?)
connect with & bring value to customers 5. CUSTOMER CONSULTING: data, informative
system, & advice services
“FIND WHAT YOUR CUSTOMERS NEED FIRST BEFORE 6. MAINTENANCE & REPAIR
CREATING A PRODUCT”
CLASSIFICATION OF PRDT/SERVICE
PRODUCT CLASSIFICATION 1. CONVENIENCE GOODS
- Tangible or intangible (i.e. insurance policy) - Purchased often & out of habit
PRODUCT STRATEGY - Low cost items w/ little diff btwn brands
- Customer & market driven - Ppl pick a brand & stick to it, don’t price check
- Should focus on a target market, product & - Wide-scale promotion” → ppl likely to buy it
consumer attributes more since have heard of it somewhere
 - Strategic Placement → place goods next to - Promote to gain AWARENESS & BUILD
the checkout line to trigger an impulse buy DEMAND
2. SHOPPING GOODS (i.e. furniture) - Obj: Awareness & trial
- Research & compare diff prdt option > IMPACT IN THE MARKETING MIX
- Higher-priced, important in person’s life - Establish prdt branding & quality lvl, patents
- Product Quality & Pricing are impt & trademarks
- Customers consider prdt’s price-value - Use PENETRATION PRICING to build mrkt
relationship because its a large purchase share (how known it is in its industry)
- Promotion → helps differentiate prdt from - PENETRATION PRICING: LOW
competitors & communicate value PRICE HIGH VOLUME
proposition to customers - Selective distribution, only to place where
3. SPECIALTY GOODS surely has the target market
- Unique or have loyal following to go extensive > MARKETINGS STRATEGY
length to buy it - Create awareness → conduct prdt trial
- Buyers look for 1 specific product, thus NOT - No or few competitors, use SKIMMING
price sensitive PRICE STRATEGY
- Outstanding & innovative products → helps - SKIMMING PRICE: HIGH PRICE
standout & for buyers to stay loyal LOW VOLUMES
- Demonstrate latest product & promote - Skims the revenue from willing to
company’s status pay ppl
4. UNSOUGHT GOODS - For prdts w short life cycle or face
- Don’t know about or don’t think of buying competition in the future
- Buy out of fear or danger (i.e. funeral
services, fire extinguishers) GROWTH STAGE
- Remind that prdt exists & need to be - Purchase of the prdt is increasing
purchased to prevent future hardships - Product concept works and is now popular
THE VALIDITY OF THE MODEL - Obj: Aims to increase prdt’s market share
- Certain goods can fall under multiple - Increased production → Economies of Scale
categories > ECONOMIES OF SCALE
- Varies depending on the customer - Cost advantage coming from increased
- Convenience & shopping goods can overlap output, so GREATER QUANTITY is produced
→ LOWER per-unit fixed cost since bulk
SESSION 3 order
PRODUCT LIFE CYCLE (PLC) - INTERNAL ECONOMIES: Advantages from
- Course of the life of a prdt use of modern tech
- from dev. to being removed from mrkt - EXTERNAL ECONOMIES: advantages from
> Prdts have limited life, sales go through stages, profit external factors
lvls fluctuate > ECONOMIES OF SCOPE
- Cost savings created by sharing resources &
capabilities adapted in 1st buss, and now
transferred to another
- LOW unit output cost w/ more prdt types
- I.e. adding a children’s line to your adult shoe
company since need same equipment,
supplies etc
INTRODUCTION STAGE > IMPACT ON MARKETING MIX
- Prdt is developed & now in markets - Prdt quality maintained, more features and
> still new & unknown to ppl support service can be added
> won’t guarantee immediate profit - Increase demand w little competition
> revenues low or negative still - Added distribution channels
- High-stakes time in prdt’s life, though it - Now promote to larger audience
doesn’t decide the eventual success > MARKET STRATEGY
 - Improve quality, add features - Not all prdt go through each stage, i.e. from
- New models & make FLANKER prdts intro to decline
> FLANKER: or “fighter brand” that offers - Not easy to know where prdt is, uses gut
new prdt to the market to increase mrkt share feeling
- For when money proposition is more
impt to buyers
- Enter new mrkt segments
- Focus of advertising preferences
- Increase distribution channels
- Lower-price → for price-sensitive customers

MATURITY STAGE
- May or may not last long
- Market is now saturated, but if product
survived then you will survive
- Sales grow at decreasing or stable rate
- BRANDING is key
- Obj: Max profits & defend share
> IMPACT ON MARKETING MIX
- Need to do differentiation
- Make price low since have more customers
BOSTON CONSULTING GROUP (BGC) MATRIX
> MARKET STRATEGY
- Determines a buss prdt’s priorities portfolio
- Maximize profit to defend mrkt share
- Guides resource allocation based on mrkt
- Add new features to existing prdt
share & growth of strategic buss unit
- Use wide variety to media to promote

DECLINE STAGE
- Sales decrease/stabilize
- More prdts introduced or customers’ taste &
preferences changes
- Obj: Milk the brand
> IMPACT ON MARKETING MIX
- INTENSE PRICE CUTTING
- Improve sale by reduce mrkt spend & cost cut
- MAINTAIN THE PRDT: revive by adding new
features or other ways to use it
- HARVEST “ “: reduce cost & offer it to Loyal
niche Superheroes THE X-AXIS
- DISCONTINUE “ “: liquidate left inventory or - Company’s mrkt share divided by share of
sell it to another firm the biggest competitor
- Relative market share measure the company’s
ADVANTAGES OF THE PLC strength in the market segment
- helps buss know when to reinvent their prdt THE Y-AXIS: Market growth
- Pushes to examine prdt advertising, MARKET SIZE: Num of potential buyers in market
packaging, & pricing strategies done MARKET SHARE
- Knowing the prdt’s stage, buss can innovate - Company’s portion of sale within the market
using new tech to upgrade that prdt to be it operates in
ahead of competition & extend prdt’s life
PROBLEMS WITH PLC
- Length in each stage varies
- Decisions of marketers can change the stage
MARKET GROWTH
- Increase in prdt demand/service over time

- shows how & when diff types of users adopt

ur prdt
- shows diff grp of people willingness to try
QUESTION MARK (“Introduction Stage”)
prdt over time
- Tries to enter high growth mrkt where theres
- each stage have certain
already market leader
demographics buying ur prdt
- Cash generation is small since have low share
- INNOVATORS -> EARLY
STARS (“Growth Stage”)
ADOPTERS -> EARLY MAJORITY
- Growing rapidly, Are LEADERS in the buss
-> LATE MAJORITY -> LAGGARDS
- Uses lots to cash to maintain position
- made by Everett M. Rogers: “adoption rate of
- Best profit growth & investment
new tech & ideas is based on characteristics of
opportunities avail to the company
certain grps of ppl”
CASH COWS (“Maturity Stage”)
PRODUCT ADAPTATION: process where customers
- Produce high levels of cash
hear abt new prdt/ service & become recurring users
- Good market position & low cost
- crucial aspect of customer health &
- Profits are high thus is the foundation of the
play big role in customer success
company
- Customer Success: approaches the company
- Rate of growth slowing down due to
takes to ensure that each customer is
saturation in the market
connected to their desired outcome
DOGS (“Decline Stage”)
- big picture of the prdt adoption
- Weak market share in low growth market
- takes the prdt lifestyle & considers
- Low profit generation
what happens at diff points
- Decide whether to hold on still

INNOVATORS
- in intro stage, ppl who are first to buy a prdt
- risk taking customers & seek changes
- try at prdt’s intro stage, first before anyone
- high risk tolerance; take risk on new prdts
that may eventually fail
- high financial liquidity helps absorb the failure
EARLY ADOPTERS
● during growth stage
● consumers/ buss using new prdt/innovation
- Can fund Question Marks & Stars w money before others
from company’s Cash Cow prdts ● buss rely on these consumers to provide prdt
- Liquidate the Dogs to get some cash & use it deficiencies & cover cost of the prdt research
for the company and development
- Need a balance of Question Marks, Stars, & ● pays more for the prdt
Dogs to ensure positive cash flow ● accept premium price if improves efficiency,
reduces cost, increases mrkt
HOW SEGMENTATION AFFECTS PLC? penetration/raises social status
PRODUCT ADOPTION CURVE: framework for strong ● conservative compared to innovators but still
prdt positioning like the new stuff
EARLY MAJORITY
● ppl who buy after waiting to see if ppl who
have bought it were satisfied
LATE MAJORITY ● long prdt life cycles + mass mrkt prdts
● during maturity stage (cleaning supplies, junk foods, etc)
● last grp of ppl who adopt to innovative tech ● PROS
● initially unfamiliar w computers & interest > easy to get customers
● older, less affluent & educated than early grps > discourages compet. who can’t handle small profits
in tech adoption lifecycle ● CONS
LAGGARDS > hard to get customer loyalty
● avoids change and not willing to adopt new STATUS QUO PRICING
prdt until all trad alternatives are ● match competitors prices
extinguished PRESTIGE/PREMIUM PRICE
● seek reliability, availability, simple to use ● HIGH price w good + unique quality
● wait until price falls PRODUCT LINE PRICING
● ?objective during decline stage” ● Customer evaluations of different features
-SUMMARY- ● Cost differences between products
Innovators: eager to be 1st to try innovative prdt
Early Adopters: opinion leaders, buy after innovators
Early Majority: adopt new ideas before ave person
Late Majority: skeptical of change
Laggards: bound by trad & hardest to convert

PRICING
● only element in marketing mix that generates
revenue, OTHERS produce cost
● easiest element to adjust
● can connote quality & prestige
FACTORS IN MAKING PRICING DECISIONS
● company, customers, compet., & mrkt envi PSYCHOLOGICAL PRICING/ ODD EVEN PRICING
PRICING STRATEGIES ● based on customer’s perception ($0.99, save
● consistent with firm’s mrkt strat & target mrkt $25)
& brand positioning ● ending w certain numbers
● appeal to customers’ emotions
INTRO: PRICING STRAT REFERENCE PRICING
MARKET-SKIMMING - new prdt has HIGH price to ● aka competitive pricing
skim MAX revenue, ppl are willing to pay this price ● sold below price of competitors’
● HIGH price LOW volume ● customers compare prices of similar prdts
● short life cycle prdts that has competition in ● more expensive becomes the reference price
the future (EX: SB, Apple) VALUE PRICING / EVERYDAY LOW PRICE (EDLP)
● competitors can’t easily enter ● setting low prices consistently
● quality & prdt image support HIGH price MULTIPLE UNIT AND COMBINATION PRICING

● PROS
> gets insight on what ppt are willing to pay for
> adds aura of prestige
> easy to decrease price after
● CONS
> easily attract competitors ● packing 2 or more identical prdts & sold at 1
price
MARKET PENETRATION - new prdt LOW price to BUNDLE PRICING
attract many buyers & large mrkt share ● package a set of goods or services for a lower
● easy to penetrate market price than bought all of them separately.
● LOW price HIGH volume DIFFERENTIAL PRICING
● aka discriminatory pricing or multiple pricing.
 ● producing a better match between demand - PRICE ELASTICITY: little to no demand
and supply. change when price changes (PRICE
● shifting some demand from peak to off-peak INELASTIC) EX: gasoline, necessary foods,
periods/ place. and prescription drugs.
- big change in demand when price
change (PRICE ELASTIC) EX:
Housing Market (like if it’s too
expensive ppl are unlikely to buy
them)
- LESS ELASTIC/ INELASTIC
- few to no substitutes
- buyers don’t notice price change
- buyers think high prices are justified
- SUBSTITUTES: elastic if have more
substitutes and seek those when price
increases
- NECESSITIES vs LUXURIES: if necessity, not
PRODUCT FORM PRICING worry abt price (INELASTIC), if luxury, not
● Diff prices charged for diff variants (color & necessary (ELASTIC)
added features) of the same product. - SHARE OF CONSUMER’S BUDGET: if takes
IMAGE PRICING up big % of budget, if even small price increase
● price the same product at diff levels (sachet, is now deemed expensive (ELASTIC)
30ml, 100ml/grms, 500ml/grms) - COMPETITIVE DYNAMICS: goods only
CHANNEL PRICING produced by 1 supplier is INELASTIC, while
● distribution channel affect pricing goods in competitive market have ELASTIC
LOCATION PRICING demand
● different price at diff locations > determine cost
● EX: public vs private hospitals - Fixed Cost
TIME PRICING - Variable Cost
● price change by season, day, hr (double digit - Target Costing
sale, holiday sale) - have price cuts
- INDIRECT PRICE INCREASES: shrink pack
PRICING POLICY FACTORS size, cheaper raw materials, less prdt features,
● selecting pricing obj less num of packs & size offered but all of this
> decide where to position market offering still has same price
> easy to set price if have clear objectives > analyze competitors’ costs, prices
> either… > selecting pricing method
a.Maximize current profit > selecting final price
b.Product quality leadership
c.Maximize market share PRICE BASED ON PRDT LIFE CYCLE
d.Maximize market skimming INTRO STAGE (establish a mrkt & build demand)
e.Survival > Skimming (HIGH price = HIGH profit)
> estimate demand - premium goods or no competitors
> each price yields diff lvl of demand & diff > Penetration (LOW price = gain market share)
impact on company’s mrkting obj - customers will choose them since lower price
- LAW OF DEMAND: demand & price is GROWTH STAGE (retain customers & increase sales)
inversely related (HIGH price LOW demand, > Differentiated Prdts
& vice versa) - skim for niche mrkt
- consider price sensitivity & price - penetration for multi-segment mrkt
elasticity of demand > Low Cost Prdt
- Penetration to retain its cost leadership
PLACE: where place prdt to gain mrkt share & profit ● Expensive prdts, intermediary places detail in
GLOBAL MARKETPLACE its sell
● helps connect with customers & prdt delivery SELECTIVE DISTRIBUTION
MRKTING CHANNELS ● small num of retailers that distribute its prdts
● entire system of getting tangible/in-“ prdts ● large geographical spread
from production to consumption IMPORTANCE OF DISTRIBUTION
CHANNEL MANAGEMENT ● delivery can influence customer satisfaction
● company develops diff mrkt & sales strats to ● long term strat decisions
reach customers ● affects profits cuz contributes 50% of final
DISTRIBUTION CHANNELS price
● chain of intermediaries where prdt passed WHAT'S THE BEST DISTRIBUTION CHANNEL
from producer to consumer ● Market Structure
DIRECT DISTRIBUTION ● look at your customers & prdt
● direct from manufacturer to consumer ● Company Obj
● manufacturer complete control over its prdt ● Sales & profit objectives
INDIRECT “: distribute prdt via an intermediary ● Resources
- some channels use more resources than
others
● Overall Marketing Strat
● must fit sales obj & positioning strats

PROMOTION
● benefit of prdt/service is shared clearly to
target mrkt
MANUFACTURER: person/grp/firm marking prdt TRAD MARKETING
WHOLESALER ● strats that have a proven success rate
● buy large qnty from manufacturer & sell to ABOVE THE LINE ADVERTISING (ATL)
retailer ● uses mass media
● sell others’ prdts to retailers NOT to ● advertising to a large audience
customers ● used to build brand
RETAILER: sells directly to consumers/end users ● CONS: Impact is diff to quantify
● good sold in small qntities BELOW THE LINE ADVERTISING (BTL)
DIRECT CHANNEL MRKTING ● non-trad advertising
● no intermediaries, low volume sales ● drives sales
● online shops or brick & mortar owned by ● expenditures are hard to measure
manufacturer ● have tangible incentive when prdt is
purchased
SALES PROMOTION
● create short term increase in sales
● B2B (Buss to Buss)
● coupons, discount codes
● B2C (Buss to Customer) —> small volume
THROUGH THE LINE ADVERTISING
manufacturing
● combination of ATL & BTL
● LOW overhead cost, HIGH profit
● maximum growth in prdt & brand
● can be via internet
PUBLIC RELATIONS
● CONS: can;t compete w
● develops positive relationship btwn org,
geographical reach, low volume,
media, & public
customers shoulder sf
● creates favorable publicity, but minimizes
INTENSIVE DISTRIBUTION
impact of negative situations
● distribute low price prdts/ impulse purchases
PERSONAL SELLING
EXCLUSIVE DISTRIBUTION
● sales interaction btwn sales representative &
● limit distribution to 1 output
customer
SPONSORSHIP
 ● org or event is paid to use a company’s - New Approach Lab Mindset - mistakes are
branding & logos seen as opportunities for growth
● brand or logos are seen on sporting events,
athlete’s clothing, stadiums PROCESS
FALSE ADVERTISING ● Actions or steps to achieve a end goal
● misrepresenting the nature, characteristic or ● good process —> repeatedly deliver same
origin of goods, services, or commercial standard of service to customers
activities -> save time & money by increase efficiency
MEDIA STRAT PHYSICAL ENVI/EVIDENCE
● how org will deliver its message ● envi is where service is delivered
● before selecting media strat -> know general ● where firm & customers interact
behavior of target audience ● SERVICESCAPE - facility where the service is
produced or delivered
PEOPLE SERVICE CHARACTERISTICS
● staff & salespeople
● recruit right people, train them well, retain
good stuff
● must be appropriately trained,
well-motivated, & good attitude
● impt asset of ur brand, cuz they leave an
impression on customers
OFFSHORING
● exporting ppl from developed - developing
countries
RESHORING 4 C’s of MRKTING MODEL
● returning the production & manufacturing ● CUSTOMER —> COST —> CONVENIENCE
goods back to company’s original country —> COMMUNICATION
OUTSOURCING ● More impt than 4 Ps → communication w
● certain jobs of the company are done outside target audience from start to end
a company, by another company or grp of ppl ● 4Ps for seller oriented mrkt strat, 4Cs for
NEW PPL STRAT PARADIGM customer-based perspective on mrkt strat
1. Create future-focused ppl strat - company CUSTOMER
put dedication on this strat ● Customer Profile: Age, Gender, Nationality,
2. Arrange compelling employee value socio-economic group
proposition - tools to have work & life balance ● build marketing plans around finding that
customer
● What and why are they looking for this prdt in
the first place, what they hope to achieve in
using your pdt/service
COST
● what the price of ur prdt/service represent to
customers through cost & value
● think abt the cost of prdt from perspective of
customer
3. Create thriving work envi - productivity increase if ● Hm ideal customer willing to pay for prdt
know work is challenging but have purpose, company COMMUNICATION
asks their opinions, able to make decisions, have strong ● define key mssg, set timing & frequency
relationship inside the company ● deliver a message they will remember
4. Cultivate lab mindset - encourages experimentation, CONVENIENCE
design thinking, balance risk-taking & climate of ● consumer’s shopping experience
continuous learning
 ● prdt/service is smth everyone needs, makes
life easier, what ppl look for when they make a MARKETING CREATES, COMMUNICATES, DELIVERS
purchase VALUE TO CUSTOMERS
● if consumer prefer shop online or in store ● customer value: ppl satisfied w ur prdt
● helps ppl decide if buy prdt/service, makes ● creating value needs sourcing, operations,
lives easier and likely to buy from company processes, sales, marketing, HR, accting,
the understands needs customer service
● customers develop relationship w brand and
soon set expectations every interaction
> customer loyalty = spread through word of
mouth to relatives & friends
> brand loyalty -> through consistent positive
BRAND experiences & engagements
● what consumers tell each other it is
● valuable asset is the brand it has invested & SEGMENTATION, TARGETING, POSITIONING (STP)
developed over time ● companies can’t appeal to all types of
● sets customer expectations & decision making customers since vary needs & buying habits
● customer’s brand loyalty = emotional ● choose target marketing than mass marketing
connection to a buss
● ur brand is a promise, what you stand for
● what pops into ppl’s minds when thought of a
company/prdt
EMOTIONAL BRANDING
SEGMENTATION
● creates long-lasting connection w customers
● divide mrkt into segments of consumers w
● build trust & loyalty, increases reach & value
common characteristics
of the brand
● easy to understand customers if grouped into
BRAND PROMISE
categories
● marketer’s vision of what brand IS & DO for
● helps find/ aim for right group of people
customers
● it is expensive if brand tries to reach everyone
PERSONAL BRANDING: key to the advancement of
● easier to understand & meet specific
career & being a leader
customer needs, create max impact, can
● leader is one that is motivated to finish smth
deliver diff message from 1 grp of ppl to next,
w/o external reward
help know where prdt fits in mkt
● want company & others to succeed
SEGMENTATION CATEGORIES
● don’t think abt their own success
● leadership requirement
● great model, mentor, others can depend on,
creates impact
● takes the lead to change things
WHAT MAKES GREAT BRANDS GREAT?
● Remarkable (great prdts/services), purpose
(have values, ethos & personality),
inspirational (communicate the brand
promise from inside i.e. employees before > GEOGRAPHIC:
relaying it to customers), relatable ● country —> how to target ur message per
(connection, high satisfaction creates country? understand the customers not just
emotional bond with company), involvement the language
(co-create w customers, consistent cuz ● Climate, customer needs
consistency = results (conform to rules, > PSYCHOGRAPHIC
policies, being reliable & true) ● Personality, values/attitudes (i.e. likes fitness),
● ETHOS/ETHIC: distinguishing character, hobbies/interests (i.e. outdoors, hiking)
guiding beliefs of person, grp, or institution
> DEMOGRAPHIC ● Measurable, Accessible, Substantial,
● age/gender, income, eduction Differentiable, Actionable (MASDA)
● what they need in their age ● M - measureable size & characteristic
● religion, language, ethnicity ● A - segments can be reached & served
> MRKTING TO GENERATIONS ● S - segments served are large & profitable
● knowing the characteristics, lifestyles, values, ● D - able to distinguish btwn segments
attitudes of each generation to determine ● Act - effective programs to attract the
strats to employ-in terms of prdts/services, segment
mode of communication and approach to DECISION ROLES
reach and sell to these segments. ● Initiator (feels the need for the prdt),
Influencer (chooses the model), Decider
SILENT GENERATION (1925-1945) (determines which model), Buyer, User
● traditionalists/radio babies, jazz, mickey (enjoys the prdt & give feedback)
mouse gen, unimaginative, cautious, spend ● USER & USAGE
money for grandkids 1.Occasions
BABY BOOMERS (1946-1964) 2.User status (nonusers, ex/potential/first time/regular
● born end of WW2 users)
● populations in countries i.e. USA boomed 3.Usage Rate (light, medium, heavy)
● seek foundation of youth (hair color, home 4.Buyer Readiness (unaware, aware, informed, interested,
gyms) desire to buy, intend to buy)
GEN X (1965-1978) 5.Loyalty Status (hard core, split, shifting, switchers)
● used day cares, accept diversity, resourceful, EVALUATE/SELECT SEGMENTS
keen on work-life balance ● two factors: 1. segment’s overall
GENERATION Y (1979-1994) attractiveness 2. company’s objectives and
● millenials, have access to some tech, work-life resources
balance, flexible working hrs
GEN Z (After 1994) TARGETING
● digital natives, gamers, care about trends and ● identify, define & select target market
issues ● an advertiser identifies target audience &
GEN ALPHA (Consumer of tomorrow, glass gen, advertises to them via diff channels.
2010-2025) ● By making the right user persona,
● born in 21st century understanding user habits & find right
● tech, diverse in race/ethnicity/fam structure, platforms to reach them -> an advertiser uses
early childhood in COVID-19, children of targeting to improve the performance of their
millenials campaigns.
● consumer of tomorrow -> digital literacy, ● answers: To Whom Should We Sell?
short attention span, prefer virtual world ● obj: define and select the primary target
market
> BEHAVIORAL ● primary target market is’ brand’s
● benefits (i.e. convenience, less cook time, self reason for being.
heating, instant) ● PROS:
● degree of loyalty (show customer that brand ● Can improved advertising
understands them) performance across the user
● rate of use (persuade to buy more i.e. fun acquisition cycle.
packaging, bundles) ● increases interaction w/
advertisements
GEODEMOGRAPHICS ● improves retention and
● methods for categorizing localities based on monetization.
the principle that residents living near each other TARGET AUDIENCE
have similar demographic, socio-economic and ● buyers who share common needs /
lifestyle characteristics. characteristics that brand decides to serve.
EFFECTIVE SEGMENTATION
 ● particular group which the advertising ● place you want your brand/prdt to have
campaign is aimed. within a particular target market
● defined by wide range of criteria from ● how you market brand/prdt to consumers to
demographics, behavior, up to devices used achieve that position.
● should recognize you’re talking specifically to ● Answers: What makes prdt/service unique
them from the rest?
● message is strong, compelling and ● high-level promise we convey to our
clear. customers.
TARGET MARKET SEGMENTS: DEGREES OF ● Quality -> considered a key positioning
IMPORTANCE message.
Primary target market - core & main market ● to stand out from compet w/ unique mssg that
● Main consuming group “patrons”, most likely appeals to interests of targeted market.
to ‘buy now’ ● firm develops market offering -> positions in
Secondary target market - Future primary buyers the mind of buyers as delivering central
● Great growth potential – buy at higher rate benefits
within small segment ● EX: A handbag maker position itself as a
● Influencers of primary buyers luxury status symbol
● may want to buy through persuasive ● A TV maker may position its TV ->
advertising, word of mouth or initial prdt trial most innovative and cutting-edge
Tertiary (fringe) market - “Wait and see” group ● A fast-food restaurant chain -> as
● waits for prdt to be popular, price is within provider of cheap meals
purchasing range & if prdt will answer needs PERCEPTUAL MAP
at one point ● diagram that maps out what customers think
EVALUATE MARKET SEGMENTS BASED ON: about your prdt/services
● overall attractiveness ● what customers think abt other brands,
● fit with the company’s objectives & resources competitors’ products
● shows PERCEPTION of positioning of
competing brands – not desired positioning
goals nor actual positioning of the brands
● uses customer data to build viewpoint on
where different brands & products, stand
within overall ecosystem.
● constructed from a market research survey of
consumers, from the collective knowledge of
experienced managers who estimate how
consumers perceive the positioning of
LEVELS OF SEGMENTATION competing brands.
● individual marketing
● single segments
● multiple segment product differentiation
● full market coverage

Perceptual map isn’t the same as Positioning map.

● Perceptual map measures customer
POSITIONING (market positioning and brand
perception
positioning)
 ● Positioning maps compare actual traits of a - Compare prdt to its competitors to see whether has
company and its offerings. good or bad chance of being successful prdt
● “perceptual” = “perception“ ● company should make adjustments and
● consumer’s understanding, opinion tweaks to its prdt to always have advantage
and assessment of a brand or a over compet.
product. ● if have intense competition among firms ->
● perceptual map shows the lower price to attract customers but lower
consumers’ perception profitability.
(understanding, etc.) of the ● If minimal Rivalry -> higher profitability.
positioning of competing brands in a
market. 2) SUPPLIER POWER
● customer perception might be right or wrong ● suppliers can decide to increase their prices
(marketing easily influences it) But or impose their policies without prior notice
positioning maps only capture and compare ● Suppliers have more control than the
reality company
● Costs go up = affects profitability
Positioning maps ● company check whether prdt will still be
● compare the actual traits of a company and its successful in the industry with higher price
offerings. compared to competitors & if switching to
● mapping either actual (technical) positioning another supplier/s is more cost-efficient
and/or positioning goals ● Suppliers w/ significantly influence -> they
demand higher prices WHICH lead to lower
profitability for firms

3) BUYER POWER
● extent the consumer is capable of spending
● customers with lower buying power ->
sensitive to price changes
● Buyers can drive prices down & can easily
switch to a competitor.
● Brand can create rewards/loyalty programs to
Marketing messaging
ensure customers do not leave
● how a brand communicates to customers and
● Brands should make sure customers are able
highlights value of its products.
to differentiate their prdts from compet.
● “Messages” -> words and phrases used by
● High bargaining power -> can negotiate lower
brand in advertising, feelings & emotions
prices from firms WHICH is lower
associated with their advertisements.
profitability.
● how to creatively advertise the Positioning.
● Positioning guides development of messaging
1. THREAT OF SUBSTITUTES
themes for marketing communications.
● firm faces possible loss due to substitutes
● substitutes can steal the market share of a
PORTERS FIVE FORCES
buss in the industry
● Substitutes are prdt/services that use diff
tech to supply the same demand
● Analyze if prdt is doing enough for consumers
not to jump to the substitute
● If many substitutes available -> customers can
switch to substitutes WHICH is lower
1. COMPETITIVE RIVALRY profitability
- intensity of competition in the industry
- the capabilities and number of competitors to 5) THREAT OF NEW ENTRY
compete with
 ● risks from new entrants joining the same - Focuses on features than the costs
industry ● Effective branding -> strong customer
● when the market offers attractive growth recognition, brand loyalty
perspectives ● Product quality -> features, reliability,
● brands must keep customers loyal to their durability
brand
● need to be able to keep current WORD OF MOUTH MARKETING
market share to ensure success ● dissemination of info abt a brand or goods
● how easy/difficult for new competitors to btwn one person to another throughout a
enter the market & compete w/ existing discussion
brands ● Allows firms to draw in new customers &
● Barrier to entry HIGH -> threat is LOW Enhance customer relationships
● increase competition -> lower profitability. ● Cost-effective “Free promotion”
● help grow your business long term

PORTER’S GENERIC COMPETITIVE STRATEGIES IMPORTANCE OF WORD OF MOUTH MARKETING

1. Huge part of marketing: Improve sales,
advertise prdt/services, increase brand
recognition, and establish consumer loyalty.
2. Not limited to 1 transaction: Creating chain of
discussions from one person to another
3. Economical way to inform: both local & online
4. Dependable & trustworthy: Hearing recos
from ppl w/ first-hand experience with brand.
COMPETITIVE SCOPE
● number of value chains it participates in WORD OF MOUTH STRATS
● BROAD SCOPE = uses differentiation and EXPERIENCE MARKETING
cost leadership strategies. ● “create experiences that get people talking"
COST LEADERSHIP ● Create shareable experience -> build
● Targets BROAD market & offer products or emotional connection w/ target audience.
services at low cost CUSTOMER REVIEWS
● Reduces selling prince to MAX cost ● getting positive reviews boosts brand’s
leadership reputation & generate brand exposure.
● Investment in newer technologies SOCIAL MEDIA
● Efficient / lean production methods ● stay active and keep followers engaged
● Closer relationships with suppliers ● "Stop Collecting and Start Connecting"
DIFFERENTIATION USER-GENERATED CONTENT (UGC)
● Creating uniqu, desirable prdts/services ● content that consumers produce and share
● Low in substitutes abt the brand or prdts
● Unique prdts = more valuable/ better than PRODUCT RATINGS
competitors ● Customer reviews are 12x more trusted
● charge premium price
● development and innovation
● deliver high-quality prdts/services
● Effective sales and marketing
COST FOCUS
● minimize costs & max profitability
● targeting narrow segments with
low-cost products
● Goal: achieve a lower cost than competitors
but still be profitable
DIFFERENTIATION FOCUS