marketing

3C/4P model

The 3Cs (Company, Customer, Competitor) , situational analysis that works to understand the market, used to derive strategy. The 4Ps (Product, Price, Place, Promotion), the Marketing Mix that helps us design and execute strategy created from 3P's.

SBU

Strategic Business Unit - a semi-autonomous unit within a larger organization responsible for particular range of products.

Customer Relationship Management (CRM)

All strategies for managing interactions to develop, acquire, and retain customers.

Customer Lifetime Value (CLV)

The predicted net profit attributed to the entire future relationship with a customer.

ADAMS

Accessible: Affordable, Reachable to target. Differentiable: internally homogenous, externally heterogenous among segments. Actionable: Practical. Measurable: Quantifiable outcomes. Substantial.

Customer equity

The total combined customer lifetime values of all the company's customers.

S.M.A.R.T. objectives

Specific, Measurable, Achievable, Relevant, Time-bound objectives used for goal setting.

Maslow's hierarchy

A theory of human motivation that arranges needs into a hierarchy, with basic physiological needs at the bottom and self-actualization at the top.

STP (Segmentation, Targeting, Positioning)

Organization model to segment market, select target market, and position its products/services accordingly.

Value proposition

The unique combination of benefits that a company offers to customers. Promise of value.

Portfolio analysis

The process of evaluating the products or services offered by a company and allocating resources accordingly.

Perception process

The process by which individuals interpret and make sense of sensory information.

Positioning

The act of designing a company’s offering and image to occupy a clear, distinctive, and desirable place in the minds of the target market.

Marketing mix / 4 Ps

The combination of Product, Price, Place, and Promotion that a company uses to satisfy customer needs.

Key Performance Indicators (KPI)

Quantifiable measures used to evaluate the success of an organization or individual.

Atmospherics

The physical elements of a retail environment that influence the customer's perception and experience.

Perceptual map

A visual representation of how consumers perceive different brands or products in relation to each other.

Marketing myopia

A narrow focus on a specific product or service rather than the broader needs and wants of the target market.

Revenue vs Profit

Revenue is the total amount of money generated from sales, while profit is the amount left after subtracting expenses.

B2C

Business-to-Consumer - transactions between a company and individual consumers.

B2B

Business-to-Business - transactions between two or more companies.

SWOT

Strengths, Weaknesses, Opportunities, and Threats - a framework for analyzing a company’s internal and external factors.

PESTEL

An acronym for Political, Economic, Social, Technological, Environmental, and Legal - macro factors that impact a business environment.

Gross margin

The difference between revenue and the cost of goods sold, expressed as a percentage.

Geodemographics

The study of the demographic characteristics of geographic areas.

Dashboard

A visual representation of key performance indicators and other important data.

5 management orientations

Production, Product, Selling, Marketing, Societal.

Production orientation

(Inside-out) Focus on efficient mass production, economy of scale.

Product orientation

(Inside-out) Innovation focus — “great products sell themselves.” Can lead to marketing myopia.

Selling orientation

(Inside-out) Customers will buy whatever we convince them to buy.

Marketing orientation

(Outside-in) Focus on identifying and satisfying customer needs.

Societal orientation

(Outside-in) Enhances both customer and societal well-being (e.g. sustainability).

5M's of internal company analysis

Minds, Minutes, Machinery, Materials, Money.

4 step marketing process

1. Analyze environment 2. Devise strategy 3. Execute via 4Ps 4. Evaluate/Maintain (CRM).

Core components of marketing

Create value, Communicate, Deliver, Build relationships, Capture value.

Direct vs indirect competitors

Direct: same products & segment. Indirect: substitute solutions in different industries.

5 steps of strategic planning

Vision → Mission → Gap analysis → SMART goals → Monitor with KPIs.

Levels of strategic planning

Corporate strategy → Business strategy → Functional strategy.

Mission vs vision

Mission: purpose and priorities. Vision: aspirational, long-term goal.

BCG Matrix

Evaluates business units by market growth rate and market share.

GE Matrix

Evaluates product lines using business strength and market attractiveness.

Harvest vs Divest

Harvest: maximize remaining profits. Divest: sell or close the unit.

Ansoff Matrix growth strategies

Market penetration, Market development, Product development, Diversification.

Gross profit vs operating profit

Gross: Revenue - COGS. Operating: Revenue - COGS - Operating expenses.

Gross margin

Gross profit / Sales.

4 types of buying behavior

Complex, Variety-seeking, Dissonance-reducing, Habitual.

Maslow’s Hierarchy

Physiological → Safety → Love → Esteem → Self-actualization.

Ernest Dichter

Father of focus groups; used psychoanalysis in marketing.

Fear tactics in advertising

Use with caution, small steps are better than extreme messaging.

Perception process

Exposure → Attention → Interpretation.

Subliminal Advertising

Weak effect, primes only basic concepts, not strong behaviors.

Associative network model

Memories/brands connected like a web, enabling priming and associations.

5 Steps to Complex Decision Making

Need → Info search → Alternatives → Purchase → Post-purchase.

B2B vs B2C Marketing

B2B involves organizations and longer sales cycles, B2C is consumer-focused.

Types of B2B buyers

Producers, Resellers, Governments, Institutions.

Funnel marketing

Top: Awareness. Bottom: Purchase.

4 segmentation types

Geographic, Demographic, Psychographic, Behavioral.

Behavioral vs Psychographic

Behavioral: usage, loyalty. Psychographic: attitudes, lifestyle.

Differentiated marketing

Different marketing mixes for different segments.

Concentrated marketing

Focus on one target market with a single strategy.

Full positioning statement

Target + Value Prop + Competitive Frame + Support.

Positioning statement template

For [segment], we are the only [frame] that [value prop] because [support].

Strong brand associations

Color, Price, Endorser, Product meaning.

ABC’s of target selection

Attractiveness, Brand Fit, Competitive Advantage.

Distinctiveness

Economic, Experiential, Functional, or Social differences.

Consumer vs customer

Consumer = uses; Customer = buys.

Marketing intermediaries

Agents, Brokers, Wholesalers, Retailers.

Benchmarking

Compare companies based on features, price, etc.

End state metric

Revenue, growth, % from new customers.

Incremental metric

Ad-driven conversions that wouldn’t happen otherwise.

Cognitive dissonance

Discomfort after purchase due to conflicting thoughts.

Reference groups

Groups that influence consumer attitudes/behavior.

Life cycle stage

Stage in life impacts buying behavior (e.g. young adult vs retiree).

Heuristics

Mental shortcuts used to make decisions (e.g., price = quality).

Supraliminal vs Subliminal

Supraliminal is visible with effort; Subliminal is not consciously seen.

Undifferentiated marketing

Single message for the entire market.

VALS

A psychographic model segmenting by values, attitudes, and lifestyle.

Innovators

High income/resources, individualistic, seek the best.

Thinkers

Knowledge-based, well-informed, high-resource.

Believers

Peer-influenced, conservative, modest resources.

Achievers

High-resource, value success, family/work driven.

Strivers

Low-resource, emulate achievers, image-conscious.

Experiencers

High-resource, young, value self-expression.

Makers

Low-resource, hands-on, value family/self-sufficiency.

Survivors

Lowest resources, brand-loyal, price-driven.

Attribute rating method

Consumers rate brands on defined attributes → stats used to map them.

Overall similarity method

Consumers compare brand pairs for similarity → map created using distances.

4Ps decisions

Product: features. Price: min/max. Place: delivery channel. Promotion: where/whom to market.

Porter’s 5 Forces

New entrants, Supplier power, Buyer power, Substitutes, Rivalry.

Subliminal marketing scare

Vickery’s false experiment scared people but had no strong results.

Behavioral segmentation uses

Benefit, usage, occasion.

Concentrated/niche marketing

Useful for low-budget firms targeting a specific group with unique needs.