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PESTEL

Political, Economic, Social, Technological, Environmental, Legal — a macro-environment scanning framework used to identify external Opportunities and Threats for a SWOT analysis

SWOT Analysis

A strategic tool that combines internal factors (Strengths, Weaknesses) with external factors (Opportunities, Threats) derived from PESTEL and Competitor analyses

How PESTEL feeds SWOT

PESTEL and Competitor analyses identify external Opportunities & Threats; a company's ability to respond to them reveals internal Strengths & Weaknesses — together they guide 4P adjustments

Innovator's Dilemma

Companies focus so heavily on sustaining existing technology for current customers that they fail to adopt disruptive innovations, eventually becoming obsolete (Christensen)

Marketing Myopia

Defining your business too narrowly around the product rather than the customer's need — e.g., Kodak thought they were in the "film" business, not the "memories" business (Levitt)

Dinosaur Organization examples

Kodak, Blackberry, Blockbuster — companies that failed to adapt to environmental/technological changes due to myopia and over-reliance on sustaining advantages

Influencer vs Reactive Organization

An influencer organization proactively shapes trends and adapts early; a reactive organization waits until disruption forces change — usually too late

Levitt's Drill Quote

"People don't want to buy a quarter-inch drill. They want to buy a quarter-inch hole." — customers buy outcomes, not products

Problem/Solution Marketing 3 Questions

1. What problem do you solve? 2. What need do you meet? 3. What desire do you fulfill? — the foundation of an effective communication strategy

Buyer Persona

A semi-fictional profile of your ideal customer including demographics, goals, frustrations, motivations, and preferred channels — used to tailor communication strategy

Tribes (Seth Godin)

Groups of people connected by a shared identity or belief — effective marketing speaks to a tribe's identity, not just their demographics

Customer Satisfaction Formula

Performance = Matches or Exceeds Customer Expectations — dissatisfaction occurs when performance falls below expectations

Asymmetry of Expectations

Failing to meet expectations damages satisfaction far more than exceeding them improves it — the negative effect is disproportionately stronger

Should companies always exceed expectations?

No — constantly exceeding raises the expectation bar (expectation ratchet), making it harder and costlier to satisfy customers over time; consistent reliability is better

Expectation Ratchet

When exceeding expectations becomes the new baseline — what delights customers today becomes the minimum they expect tomorrow

Why niche markets have higher satisfaction

Narrowly defined segments allow companies to tailor products, messaging, and experience precisely — customers feel understood, driving higher loyalty and satisfaction

Relationship Marketing

A strategy focused on building long-term customer bonds rather than one-time transactions — prioritizes retention, trust, and emotional connection

Morin's 3 Principles

1. Know customers individually (invite feedback, listen) 2. Connect emotionally (personalization) 3. Earn trust (expertise + goodwill, act in customer's best interest)

CLV Formula

Average purchase value × Number of purchases per year × Average length of customer relationship (in years)

Retention Stat (Bain & Company)

A 5% improvement in customer retention boosts lifetime customer profits by 25% to 95%

Relationship Marketing Examples

Loyalty programs (Starbucks Rewards), Amazon personalized recommendations — both build emotional connection and increase CLV

Brand Essence Chart Layers

Attributes → Benefits → Personality → Source of Authority → Positioning/Brand Essence (center) → What it says about you → How it makes you feel

Positioning Matrix

A two-axis grid plotting a brand versus competitors on dimensions relevant to the target market (e.g., Quality vs. Price)

Outbound Marketing

Proactive, interruption-based marketing that reaches out to customers — ads, cold calls, direct mail, sales promotions, sponsorships

Inbound Marketing

Draws customers in through valuable content they seek out — blogs, podcasts, videos, social posts, webinars, infographics

Content Marketing

An inbound strategy of creating and distributing consistent, relevant content to attract and retain an audience — goal is trust and long-term conversion, not direct selling

Zottola's 4 Imperatives for Brand Storytelling

1. Hook your audience early 2. Make the customer the protagonist (hero) 3. Connect with emotional impact 4. There is an art to content creation

Gunelius & Hedges 5 Storytelling Secrets

1. Speak truthfully (consistency, persistence, restraint) 2. Infuse brand persona 3. Create characters the audience roots for 4. Include beginning, middle, and end 5. Don't give it all away

Ginsberg & Bloom Green Marketing Insight

Consumers prefer a green product over a less eco-friendly one when all other factors are equal — but price, quality, and convenience must be competitive first

Roper's 4 Green Consumer Segments

1. Resource Conservers (save money/waste) 2. Health Enthusiasts (personal health) 3. Animal Lovers (animal welfare) 4. Outdoor Enthusiasts (nature preservation)

Resource Conservers Message

"Save energy, save money" — motivated by efficiency and reducing waste, not ideology

Health Enthusiasts Message

"No toxins — better for your body" — motivated by personal and family health benefits of green products

Animal Lovers Message

"Cruelty-free. No animals harmed." — motivated by ethical treatment of animals

Outdoor Enthusiasts Message

"Protect the places you love." — motivated by preserving nature and outdoor environments

For-Profit Campaign Goal

Drive purchases from a defined target market — success = revenue and market share

Nonprofit Campaign Goal

Raise awareness, change behavior, attract donations, and recruit volunteers — multiple audiences, no single transaction

Nonprofit Audiences

Beneficiaries (those served), Donors, Volunteers, Government/Grant bodies, General Public — each requires a different message

Mission-Driven Marketing

Integrating a social or environmental purpose into the core business model — the mission is not an add-on but the brand's reason for being

Ikigai

Japanese philosophy meaning "reason for being" — the intersection of: what you love, what you're good at, what the world needs, and what you can be paid for

Mission-Driven Company Examples

Patagonia (environmental activism), TOMS (one-for-one giving), Warby Parker (glasses donations), Ben & Jerry's (social justice)

Why Mission-Driven Companies Are Profitable

Mission attracts a loyal tribe → lower customer acquisition cost + premium pricing tolerance + earned media value + engaged employees

Vision → Action Pyramid

Vision → Mission → Goals → Strategy → Tactics → Action Plan