Core Marketing Concepts and Strategic Analysis
What Is Marketing?
Marketing is a social and managerial process through which individuals and organizations obtain what they need and want by creating and exchanging products and value with others. It focuses on identifying and satisfying customer needs.
The History of Marketing
The Production Era
Demand exceeded supply, leading to minimal competition and monopolies.
The Sales Era
Supply exceeded demand, which gave rise to competition.
The Marketing Era
Supply greatly exceeded demand, making customer-focused marketing essential.
Different Levels of Marketing
Domestic Marketing
This involves the 4Ps (Price, Promotion, Place, Product) within a single country.
International Marketing
Marketing activities that cross a number of foreign country markets.
Global Marketing
The primary objective is to achieve synergy by coordinating marketing activities across all global markets.
Export Marketing
The firm markets its goods and services across national boundaries from its home base.
Environmental Analysis: The SLEPT Framework
SLEPT stands for Social, Legal, Economic, Political, and Technological factors. A successful marketing company is one that can best manipulate the controllable tools of the marketing mix within this uncontrollable external environment.
International Marketing Planning Process
The key stages of planning include:
- Stakeholder expectations
- Situation analysis
- Resources and capabilities assessment
- Corporate aims and objectives
- Marketing strategies
- Control and feedback
Strategic Analysis Tools: SWOT and PEST
SWOT Analysis
Focuses on internal (Strengths, Weaknesses) and external (Opportunities, Threats) factors directly affecting the company.
PEST Analysis
Relates to the general external macro-environment (Political, Economic, Social, Technological).
Barriers to International Trade
Common obstacles include:
- Cultural and social differences
- Political barriers
- Tariffs and trade restrictions
- Boycotts
- Monetary barriers
Key Supranational Organizations
World Trade Organization (WTO)
Deals with the rules of trade between nations.
United Nations Conference on Trade and Development (UNCTAD)
Helps developing countries access the benefits of a globalized economy.
The Organisation for Economic Co-operation and Development (OECD)
Promotes policies that will improve economic and social well-being.
International Chamber of Commerce (ICC)
Helps businesses operate internationally by setting rules and standards.
Key National Organizations
Examples include the State Secretariat, the International Commerce Institute, and Spanish Chambers of Commerce.
The Concept of a Market
A market is a physical or virtual place where an exchange relationship takes place, driven by the need and desire for a specific product.
Understanding Needs, Wants, and Demand
Needs
Needs are the necessities of life that all humans require for their survival. According to Maslow’s Hierarchy of Needs, these include:
- Physiological: Food, water, shelter
- Safety: Security, protection
- Love/Belonging: Friends, family, intimacy
- Esteem: Feeling of accomplishment, prestige
- Self-Actualization: Achieving one’s full potential
Wants
Wants are specific expressions of needs, shaped by culture and individual personality, through the desire for specific objects.
Demand
Demand is the amount of a good or service that consumers are willing and able to purchase at various price levels.
Types of Markets
- Current Market: Existing customers.
- Objective Market: The target audience for marketing efforts.
- Potential Market: All people who might become customers.
The STP Process: Segmentation, Targeting, and Positioning
Market Segmentation
This consists of identifying all potential customer groups that are viable for the purposes of marketing products. Common methods include:
- Behavioural Segmentation
- Demographic Segmentation
- Geographic Segmentation
- Psychographic Segmentation
Targeting
Targeting is the process of selecting the market segments with which the company intends to engage.
Positioning
Positioning is the process of creating clear and distinctive perceptions in the minds of customers about the nature of a company, its brands, and its products relative to competitors.
Positioning Statement
A one or two-sentence summary of a company’s positioning strategy.