1. What is Marketing?
… the process to of
identifying, stimulating
and satisfying customer
genuine wants and
needs. ..
2. Marketing Theory History
Production Selling Marketing Relationship
“Feature based “Benefit based “Positioning in Building
product focus” customer wants the customer’s “Building lasting
and needs” Mind through ties to retain
Branding and customers
use of customer through
input” applying personal
selling to mass
markets with
Make customers brand loyal technology”
Create corporate equity
Retain channel power
Pull customers to the point of purchase
Think needs not products within core competencies
3. Basic Marketing Frameworks
Marketing environment
Communications process
Message effectiveness model
Customer qualification pyramid
Stages of buying
Product diffusion/adoption
Competitive positioning
MC* strategic development
*Marketing Communications
4. Marketing Environment
Political-Legal
Technological c t
Pr
du
ici
o
Pr Competitive
ng
Also public
Target
relations and Market
n
Pr
io
politics
o
ut
m
ib
ot
str
io
n
Di
Economic
Social-Cultural
From Marketing by Richard Sandhusen, Barron’s, 2000, 82.
6. Message Effectiveness Model
Received – target the right audience
Attended to – break through the clutter
Understood – language, graphics, symbols
Believed – authenticity,trusted authority or
brand
Remembered – repetition, visualization, brand
Acted upon – ask for the sale, call to action
7. Stages of Buying
“Hierarchy of Effects”
Create awareness
Establish product recall, brand recognition and identity
Create interest
Impart information, increase comprehension and knowledge for
evaluation
Develop desire
Create attitudes of liking and preference; positioning
Create conviction
Trial use, test drive
Induce action (behavior)
Adoption/purchase
Reduce cognitive dissonance (behavior)
Reinforce decision to buy, filter out unfavorable data
8. Product Diffusion Model
How are these segments
different in motivation, attitude
and behavior?
Early
Adopters:
13.5% Early Late Laggards: 16%
Majority Majority
34% 34%
Innovators: 2.5% Crossing the Chasm, Geoffrey Moore, 1991
9. Competitive Positioning Model
Performance
1: Compete by
offering better
functionality
Most demanding
2: Compete with
improvements in
reliability & trust
Main stream
3: Compete with 4: Compete on a
Least demanding convenience: speed, price basis
responsiveness, custom.
Time
Clayton Christensen. (2000). After the Gold Rush. Innosight, LLC
10. Competitive Positioning Model
Performance
1: Compete by
offering better
functionality
Most demanding
2: Compete with
improvements in
reliability & trust
Main stream
3: Compete with 4: Compete on a
Least demanding convenience: speed, price basis
responsiveness, custom.
Time
Clayton Christensen. (2000). After the Gold Rush. Innosight, LLC