Strategic marketing

Describe needs, wants and demands

• Needs = basic human requirements (food and shelter) 

• Wants = Wants are the specific ways people choose to satisfy their needs, shaped by culture and personality 

• Demands = When people’s wants are backed by purchasing power, Want iPhone and have money to buy it

What are market offerings

Market offerings are products, services, information, or experiences offered to satisfy customer needs and wants.

How do value and satisfaction influence customer choices?

Customers choose offerings that provide the most value (benefits vs. costs). Satisfaction occurs when the product or service meets or exceeds expectations, leading to loyalty.

What is the production concept

The production concept focuses on efficiency and availability.

What is the product concept

The product concept emphasizes product quality and innovation

What is the selling concept

The selling concept relies on aggressive promotion and selling

How does the marketing concept

customer needs first, deliver better than competitors 

What is the social marketing concept?

balance company profits, customer needs and society’s well-being 

What are stated needs?

Stated needs are what the customer explicitly says they want. Vad kunden säger rakt ut.
Det de ber om direkt.

What are real needs?

Real needs are the underlying problems customers want to solve, which may differ from their stated needs. Vad kunden egentligen behöver för att lösa sitt problem

What are unstated needs?

Unstated needs are expectations customers have but do not openly mention (e.g., good service or packaging). Saker kunden förväntar sig men inte säger.

What are delight needs?

Delight needs are unexpected extras that pleasantly surprise customers and exceed their expectations. Extra saker som överraskar positivt.

What are secret needs?

Secret needs are those the customer is reluctant to express, often related to emotions or self-image (e.g., wanting to appear successful). Behov kunden inte vill erkänna, needs the customer deosn’t want to admit

What is benchmarking?

Benchmarking is comparing a company’s performance to others (within or outside the industry) to identify ways to improve.

How does benchmarking help organizations?

It helps find best practices, develop operations through role models, improve products, and even drive major internal changes.

What is the difference between benchmark indicators and KPIs?

• Benchmark indicators show performance compared to a target or standard.

• Key Performance Indicators (KPIs) measure how effectively a company achieves its goals.

Performance Indicator

measure of enterprise performance, Ett mått som visar hur bra företaget gör ifrån sig. 

Benchmark

specifies a level of performance to aim for, Ett mål eller nivå man vill nå upp till.

What is segmentation?

Segmentation is the process of dividing a market into smaller groups of customers based on relevant differences such as needs, behavior, or demographics, so that the company can target them more effectively. dela upp marknaden i grupper så att man lättare kan förstå och nå rätt kunder.

Consumer behavior

needs, wants, motivation/triggers, buying process 

What is target marketing?

Target marketing means finding groups of people who have similar needs and choosing which group to focus on, instead of trying to sell to everyone. hitta från segment gruppen.

What are the three key steps in target marketing?

1. Identify distinct groups of buyers who differ in their needs and wants (segmentation) 

2. Select one or more market segments to enter (targeting) 

3. For each segment, establish, communicate and deliver the right benefit(s) for the company’s market offering (developing a value proposition and positioning) 

mass marketing 

In mass marketing the firm ignores segment differences and goes after the whole market with one offer 

targeted marketing 

When different groups of consumers have different need and wants, marketers can define multiple segments, den marknad som faktiskt har blivit riktad mot i en viss kampanj eller åtgärd.Företaget planerade att nå kvinnor 18–30 år (target market),

one-to-one 

When each market segment is a single customer 

Strategic targeting 

Strategic targeting is based on the deliberate choice to ignore some customers to better serve other customers with an offering that matches their specific needs.

Strategic targeting is guided by two key factors

1. Target combability, Passar målgruppen vårt företag och varumärke?

2. Target attractiveness, Är målgruppen intressant och lönsam?

Tactical targeting

takes the opposite approach; it strives to reach all strategically important customers in an effective and cost-efficient way.  

how to Define the customer profile

Demographic factors, Geographic factors , Psychographic factors , Behavioral factors 

What does customer centricity mean?

Customer centricity means placing the customer at the center of all marketing decisions, identifying, understanding, and meeting their current and future needs, wishes, and values. betyder att ett företag sätter kunden i centrum för all sin verksamhet

What is cross-cultural marketing?

Cross-cultural marketing focuses on understanding and adapting to cultural differences between markets to make products and messages suitable for different audiences. Cross-cultural marketing betyder marknadsföring över olika kulturer, alltså när ett företag anpassar sin marknadsföring till olika kulturella grupper – antingen mellan olika länder eller inom samma land.

What are some common reasons companies enter international markets?

• To increase sales and market share.

• To diversify risk and reduce dependence on one market.

• To access new customer segments.

• To achieve economies of scale.

• To strengthen brand recognition globally.

What are Don Norman’s key principles of good product design?

• Discoverability – Users can easily see what they can do with the product.

• Conceptual model – The product matches how users think it should work.

• Feedback – The product gives clear responses to actions.

• Consistency – Similar tasks are performed in similar ways.

How is the traditional organization chart structured?

• Top Management at the top — makes key decisions.

• Middle Management implements strategies.

• Frontline employees interact with customers but have little authority.

• Customers at the bottom — seen mainly as end recipients of products.

How is the modern customer-oriented organization chart structured?

It’s an inverted pyramid:

• Customers at the top — the most important focus.

• Frontline employees next — they directly serve and create value for customers.

• Middle management supports and coordinates resources for staff.

• Top management at the bottom — their role is to enable and empower others.

What is the main difference between the traditional and modern organization structures?

Pyramiden har ändrats eftersom fokus har flyttats från ledningen till kunden, kunderna har fått mer makt och förväntningar, företag vill vara mer kundcentrerade

Customer-perceived Value (CPV)

The difference between the total customer benefit and the total customer cost 

Explain the concept of total customer benefit. What are its main components, and how do they each contribute to a customer’s perception of value?

• Product benefit (features, quality, performance, design, durability) that deliver core value.

• Service benefit (support such as delivery, installation, warranties) that enhances convenience.

• Personnel benefit (competence, courtesy, and service quality of staff) that builds trust and satisfaction.

• Image benefit (brand reputation, emotional or status value) that creates identity and loyalty.
  Together, these benefits shape the customer’s total experience and influence purchase decisions.

What is a value proposition?

Value proposition betyder företagets löfte om vilket värde det ger till sina kunder.
Det handlar om varför kunden ska välja just det företaget och vilken nytta kunden får.

What is value creation? 

Value creation is about delivering a balance of benefits over cost, creating value not only for customers but also for collaborators and the company, by providing products, services, and experiences that meet customer needs better than competitors.Value creation betyder värdeskapande – alltså hur ett företag skapar nytta eller värde för sina kunder.

Marketing Mix 4Ps

• Product – Must meet customer needs, perform well, and match customer expectations.

• Place – Should be available where and how the target consumer prefers to buy.

• Price – Should reflect good value for money, not necessarily the lowest price.

• Promotion – Includes advertising, PR, personal selling, sales promotion, and social media to communicate with the right audience in the right tone.

The Marketing Mix extended 7Ps: 

• Product – Must meet customer needs, perform well, and match customer expectations.

• Place – Should be available where and how the target consumer prefers to buy.

• Price – Should reflect good value for money, not necessarily the lowest price.

• Promotion – Includes advertising, PR, personal selling, sales promotion, and social media to communicate with the right audience in the right tone.

• People – Everyone involved in the delivery and experience of the product; their competence and attitude affect customer satisfaction.
  6. Processes – The systems and procedures through which the product or service is delivered.
  7. Physical Evidence – Tangible elements that support the service experience (e.g., environment, design, packaging).

What does differentiation mean in marketing mix planning?

Differentiation means making an offering stand out by creating meaningful differences from competitors through product features, price, distribution, promotion, people, processes, or physical evidence.

How can a company differentiate with price or place?

• Price: Offer lower prices if production efficiency allows or charge premium prices for higher perceived value.

• Place: Use exclusive distribution channels or convenient locations to stand out.

How can services differentiate through people, process, and physical evidence?

• People: Well-trained and motivated staff improve service quality.

• Process: Smooth and consistent delivery increases reliability.

• Physical Evidence: A professional environment or packaging builds trust and enhances brand image.

What is a customer-focused value proposition?

It is a clear statement of why the target market should buy from the company instead of competitors — highlighting unique and relevant benefits that match customer needs.

What are points-of-difference (PODs)?

Attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they cannot find to the same extent with a competing brand.

What makes a strong point-of-difference?

• Desirable (important to the customer)

• Deliverable (feasible for the company to provide)

• Differentiated (distinct from competitors)

How do companies communicate their POPs and PODs?

Through promotion tools like advertising, PR, storytelling, and branding that clearly highlight unique benefits and category membership.

What are examples of negatively correlated brand attributes that marketers must balance?

• Low price vs. high quality

• Taste vs. low calories

• Powerful vs. safe

• Ordinary vs. exclusive

• Varied vs. simple

What is a brand mantra or brand essence?

A short, memorable phrase that captures the brand’s core promise — it should communicate, simplify, and inspire both employees and customers.

What are the key questions companies must consider about pricing?

• How do consumers process and evaluate prices?

• How should a company set initial prices?

• How should prices adapt to changing situations?

• When should a company initiate a price change?

• How should a company respond to competitors’ price changes?

How do companies typically set prices?

• In small companies, pricing decisions are usually made by the owner or manager.

• In large companies, decisions are made by division or product-line managers, within a general pricing framework set by top management.

What are the main steps in setting a pricing policy?

• Select the pricing objective.

• Determine demand.

• Estimate costs.

• Analyze competitors’ costs and prices.

• Select a pricing method.

• Set the final price.

What are the main types of pricing objectives?

• Survival: Keep the business running during tough times by covering variable and some fixed costs.

• Maximum current profit: Set prices to maximize immediate profit or return on investment.

• Nonprofit/public objectives: Aim for cost recovery or accessibility (e.g., schools, hospitals).

• Market share maximization: Lower prices to increase sales volume and market dominance.

• Product-quality leadership: Charge higher prices to reflect superior quality or status.

• Market skimming: Set high initial prices for new innovations, then lower them over time (e.g., Sony, Apple).

How can a company compare its offer with competitors’?

• If the company offers more features → add their value to the competitor’s price.

• If competitors offer more features → subtract that value from the company’s price.
  This helps decide whether to charge more, the same, or less than competitors.

What are the three main considerations in price setting?

• Costs → set the price floor (minimum viable price).

• Competitors’ prices → provide a reference point.

• Customer perception of value → sets the price ceiling.