module 1.2 core principles & 4p’s

What makes marketing successful?

Marketing fixes depends on three core principle

1.Customer value

Definition:- The benefits customers received from a product service

Keyidea:- Customers by product that solve problems, satisfy needs or improve lives

Example:- People by smart phones because they provide communication, entertainment inconvenience

Remember:- no value = no customers

2.Differentiation

Definition :- Making our product service distinct from competitors

Keyidea:- Offering value is not enough, you must offer better or unique value

Ways to differentiate:

• Better quality

• Lower Price

• Superior service

• Unique features

• Strong brand image

Example:- apple Differentiates through design ecosystem and user experience

Remember :- differentiate or compete only on price

3. segmentation , targeting & Positioning (STP)

One of the most important concepts in marketing

A. Segmentation

Definition:-Dividing the market into groups with the similar needs or characteristics

Example: Sports shoe market

• Professional athletes

• Casual runners

• Gym users

B. Targeting

Definition:- Selecting the segments, the company wants to serve

Example: Nike Main target athletes and fitness enthusiast

C.positioning

Definition:- Creating a unique image of a brand in customers, mind

Example : Nike= Performance and athletic excellence

Four P’s of marketing

The four P’s Are the tools the market is used to implement strategy

1. Product:

Definition:- Item service or idea offered to customer

Questions:

• What are we selling?

• What benefit does it provide ?

Example:

• Smart phone

• Online course

• Banking service

Remember product = value offered

2. Price :

Definition: The amount of customers given in exchange for the product

Question:-

How much should customer pay?

Does the price reflect value

Example :-

Premium pricing

Discount pricing

Remember:Price = Customer sacrifice

3. Promotion:-

Definition:- Communication used to inform and persuade customers

Tools :-

• Advertising

• Social media

• Public relations

• Sales promotions

• Personal selling

Remember:Promotion=communication

4. Place

Definition:How products reach to customers?

Includes :-

• Distribution channels

• Delivery systems

• Store locations

• Online platforms

example :-

• Retail stores

• Customer website

• Home delivery

Remember:place = availability

Relationship between core principle and four P’s

(Principle)- Customer value - (purpose) -give customer a reason to buy

(Principle) Differentiation-(purpose)-give customers a reason choose you

(Principle)STP - (purpose) -choose the right customers

→ use the fourP’s to execute the strategy

Product + price + promotion + place

The 3 core marketing principles

Customer value

Differentiation

STP ( segmentation , targeting , positioning )

The four P’s

Product = what you offer

Price = what customer pays

Promotion = how you communication

Place = how customers receive the product

STP meaning

Segment = divide market

Target = choose Customers

position = create brand image

Key rule for effective marketing strategy

Value + differentiation + STP + four’s P = effective marketing strategy