Strategic Marketing: Concepts, Positioning, and Persuasive Advertising
Understanding Core Marketing Concepts
Marketing Concept Defined
The marketing concept is a business philosophy where a company’s success hinges on its ability to efficiently identify consumer needs and wants, and satisfy them better than the competition.
Why Marketing Matters for Business Success
- Financial success is directly related to a company’s ability to effectively market its products and services.
- A business becomes profitable when it offers goods and services that customers need and want at the right price.
- Marketers aim to:
- Identify and understand the factors that influence consumer buying decisions.
- Gain insight into consumer behavior to develop effective strategies.
Needs vs. Wants in Marketing
- Need: Essential for survival (e.g., food, shelter).
- Want: Something desired but not essential for survival (e.g., video games, sports tickets).
Understanding the Exchange Process
For a successful exchange to occur, the following conditions must be met:
- There must be at least two parties involved.
- There must be a means of communication between them.
- Each party must be free to accept or decline the offer.
Key Benefits of Effective Marketing
- Adds perceived value to products and services.
- Makes the buying process easier and more convenient.
- Helps create and maintain reasonable prices.
- Offers a variety of choices to consumers.
- Supports increased production and innovation.
The Marketing Mix: The 4 Ps
Also known as the 4 Ps of Marketing, these are tools used to meet customer needs:
- Product: The good or service that satisfies a consumer need.
- Price: What consumers are willing to pay, based on value and cost.
- Place: Where and how the product is made available to consumers.
- Promotion: Communication used to inform or persuade customers (e.g., advertisements, sales, social media).
Defining Your Target Market
The target market is the specific group of consumers a business aims to reach. A target market must be:
- Sizeable: Large enough to be profitable.
- Reachable: Accessible through communication channels.
- Measurable: Can be quantified in terms of size and purchasing power.
- Behavioral: Members share similar behaviors or preferences.
All organizations must understand their target market to create an effective marketing strategy that caters to their audience.
Understanding Niche Marketing
Niche marketing is the process of identifying a relatively small segment of a market with specific, unmet needs. It targets a specialized group of consumers seeking unique products or services not widely offered by competitors.
In summary, it targets a small, specialized market with unique needs.
- Pros: Less competition, focused message.
- Cons: May become crowded if others imitate success.
Market Segmentation Strategies
Market segmentation is the process of identifying distinct groups of consumers based on shared needs and characteristics. The goal is to understand these groups better, determine target markets, and develop strategies that appeal to them more effectively.
Benefits of Market Segmentation
- Helps to understand consumer groups and their behaviors.
- Enables companies to develop precise target markets.
- Helps in creating tailored positioning strategies.
- Allows businesses to customize products and marketing efforts to fit specific segments.
Five Bases for Market Segmentation
- Demographic Segmentation: Focuses on measurable characteristics such as age, income, occupation, gender, and education.
- Product Usage Segmentation: Reflects consumer behaviors such as frequency of use, product preferences, and reasons for use.
- Psychographic Segmentation: Groups consumers based on their personality traits and lifestyle.
- Benefits Segmentation: Focuses on the value that consumers are looking for in a product or service.
- Geographic Segmentation: Divides the market based on physical locations, such as regions (North, South, East, West) or urban vs. rural areas.
Multiple Segment Selection
- Several Valid Segments: Many segments can be useful in making marketing decisions. That is why marketers often choose to target several segments.
- Final Decision: The decision on which segments to select is based on which segment best fits the organization’s target market and strategic objectives.
Brand Positioning and Differentiation
Brand Positioning Fundamentals
Positioning is the process of fixing a company’s products in the minds of consumers by highlighting their perception in relation to competing products. It is a crucial process to differentiate the brand in the minds of the target audience.
Key Aspects of Positioning
- Perception: Positioning is based on how consumers perceive a product compared to other similar products.
- Relative to Competitors: The positioning of a product is defined relative to what competitors offer.
Examples of Positioning
- Sports drinks: Gatorade as a performance drink.
- Film studios: Pixar as a leader in animated films.
Positioning Map
Products or services are grouped in a positioning map according to how they compare to other products in the market.
Developing a Positioning Strategy
- Sources of Differentiation: Products, services, channels, people, or the company’s image can be sources of differentiation that allow a brand to stand out in the marketplace from its competitors.
- Positioning Relative to Competitors’ Weaknesses: Organizations often position their products by highlighting the weaknesses or weak points of competing products.
Competitive Advantage in Positioning
- Choosing the Right Competitive Advantage: How many differences should be promoted? Define the Unique Selling Proposition (USP).
- Common Positioning Mistakes: What differences to promote? Are the differences being promoted legitimate?
Product Differentiation
Product differentiation is a positioning strategy that some companies use to distinguish their products from those of competitors.
Repositioning Your Brand
Repositioning is a marketer’s plan to change consumer perceptions of a brand compared to competing brands. This may involve a change in strategy to appeal to a different market.
Advertising Fundamentals and Techniques
Advertising Defined
Advertising is any paid, non-personal form of communication by an identified company used to promote goods and services to a target audience.
Common Advertising Formats
- TV Commercials and Infomercials
- Print Advertisements
- Direct Mail
- Internet Advertising
- Social Media Advertising
Why Businesses Advertise
- Effective Communication: Helps deliver the brand’s message clearly to the target audience.
- Create Awareness: Makes people aware of the existence of a product, service, or brand.
- Create or Change Image: Shapes public perception or updates the image of a brand or company.
- Associate a Brand with Feelings and Emotion: Connects emotionally with consumers to build loyalty (e.g., happiness, trust, excitement).
- Precipitate Behavior: Encourages action like buying, subscribing, or visiting a website.
- Establish / Maintain Goodwill: Builds a positive relationship and reputation with the public.
- Assist in the Increase in Sales: Promotes products/services to boost demand and revenue.
Types of Advertising Media
- Print Media: Any written form of communication used to inform, persuade, or remind consumers about products or services offered. Examples: Newspapers, Magazines, Flyers, Brochures.
- Outdoor Advertising: Advertisements placed in public spaces for high visibility and 24-hour exposure. Examples: Billboards, Building walls, Stadium signs, Elevator doors in hotels/business buildings.
- Mass Transit Advertising: Ad placement on public transportation systems. Examples: Bus exteriors/interiors, Subway stations and trains, Taxicabs, Bus stands, Light rail.
- Broadcast Media: Forms that combine visual and/or auditory communication to inform, persuade, or remind consumers about goods or services offered:
- Radio Advertising: Matches target markets to radio stations; reaches a wide audience, often cost-effective.
- Television Advertising: Includes commercials and infomercials; most expensive broadcast form; can generate massive revenue and brand awareness.
- Online/Digital Media: Advertising through digital platforms. Channels: Social media (Facebook, X/Twitter, Instagram), Banner ads, Pop-ups, Mobile apps, Online streaming (digital broadcasts).
- “Specialty” Media (Promotional Products): Everyday items branded with a company logo or message. Examples: Pens, Lanyards, Mugs, Magnets, Calendars.
- Creative/Alternative Media: Unique, attention-grabbing ad formats outside of traditional channels (like TV, radio, or print). It is another creative way of communicating advertising messages to consumers in unexpected or memorable ways. Examples: Blimps or hot air balloons, In-theater ads, Supermarket carts and bags, Custom-branded airplanes or Personal vehicles with ads.
Advertising Agencies and Their Role
Advertising agencies are organizations that plan and implement advertising strategies for clients.
Roles of an Advertising Agency
- Campaign strategy
- Creative design
- Media buying and placement
- Tracking effectiveness
Why Partner with an Advertising Agency?
- Expertise in advertising and marketing
- Helps save time
- Offers a fresh perspective
- May provide access to celebrities/athletes
Advertising Techniques & Persuasion
Common Advertising Channels
Where do you typically see or hear advertisements?
- TV
- Radio
- Magazine Ads
- Billboards
- Flyers
- Internet
Defining the Advertising Target Audience
A company aims to target a specific customer. This target group can be defined based on:
- Age Group
- Male/Female
- Student
- Single/Married
- Special Interests (e.g., Music, Sports, Fashion, Food)
Advertising Approaches
- Brand Advertising: The goal is for customers to remember the brand name and buy that product when in the store. It builds dependency on the brand’s quality over time and is typically more expensive, as the cost of advertising is reflected in the price.
- Slogans & Jingles:
- Slogans: Catchy phrases that help remember the brand. Example: “Who lives in a pineapple under the sea?”
- Informative Ads: These educate or inform you about the product. Example: Car ads showing features like brakes, fuel efficiency, airbags, etc.
- Persuasive Advertising: Aims to persuade potential buyers using different forms of persuasion.
Forms of Persuasion in Advertising
- Rational Appeal: Uses facts and logical information to convince customers.
- Emotional Appeal: Appeals to emotions, such as love or success.
- Positive Appeal: Highlights only the positive aspects of the product, leaving out the negative.
Aristotle’s Three Modes of Persuasion in Advertising
Aristotle’s thoughts on persuasion, discussed in his work Rhetoric, still apply to modern advertising. He outlined three primary modes of persuasion that all ads use in different combinations:
Logos: Logic and Reason
- Persuasion based on logic and reason.
- The key idea or selling proposition of the ad is logically explained, often followed by a call to action.
- This doesn’t always have to be rational; sometimes the ad uses creative or emotional elements, but the underlying message is logical.
Ethos: Credibility and Trust
- Persuasion based on credibility.
- This seeks to build the trustworthiness of the message. It’s about how the audience perceives the advertiser’s character.
- Techniques to build ethos include using testimonials, expert recommendations, and celebrity endorsements.
- The reputation of the brand and its history can also add to the credibility of the ad.
Pathos: Emotion and Connection
- Persuasion based on emotion.
- Advertisers aim to influence the audience’s emotional state, as emotions often drive decisions.
- Ads may use humor, empathy, or serious emotional appeals to connect with the audience on an emotional level.
- The emotional appeal doesn’t always need to be serious; humor can also play a key role.
Integrating Persuasion Techniques
- Every advertisement uses at least one of the three modes of persuasion, and many use all three.
- When using multiple modes, they must complement and support each other to reinforce the message.
- Advertisements are also influenced by non-verbal elements, such as design, images, music, casting, and overall presentation.
Advanced Persuasion in Marketing
Persuasion Marketing Strategies
What is Persuasion Marketing?
- Persuasion marketing applies human psychology to develop techniques for marketing products or services, focusing specifically on promotions.
- It leverages customers’ impulsive behavior to influence their purchasing decisions.
Who Uses Persuasion Marketing?
- Salespeople have long used persuasive techniques, now adapted for online platforms.
- In 2011, Persuasion Marketing was a key topic at the SES (Search Engine Strategies) convention, discussed by Susan Bratton.
- Marketers in various industries, especially e-commerce sites, use persuasion marketing to convert website visitors into customers.
Elements of Persuasion Marketing
- Structured Communication: Controlling the order in which information is presented to the consumer.
- Storytelling & Copywriting: Using narratives to appeal to emotions and subconscious responses.
- Neuromarketing: Targeting the 90% of the decision-making process that happens subconsciously.
When is Persuasion Marketing Effective?
Customers’ sensitivity to persuasive arguments can vary, influenced by their emotional state. A “persuasion window” opens when a customer is particularly receptive, allowing marketers to close a deal before the window closes.
- Examples of Persuasive Windows:
- When the consumer is in a good mood.
- When they feel the world is uncertain.
- When they are indebted to someone.
- When immediate action is required.
- After making a mistake or being denied something.
Developing a Persuasion Marketing Campaign
- Structured Communication: Like a planned conversation, controlling how information is presented.
- Storytelling: Creating a narrative that resonates emotionally and subconsciously with the customer. Key elements include:
- Passion
- The Hero (the customer)
- The Antagonist (e.g., fear of loss)
- Moment of awareness
- Transformation
- Copywriting: Using precise language to influence customer behavior.
- Neuromarketing: Applying psychological research to marketing strategies, focusing on visual and sensory cues to trigger subconscious responses.
Persuasion Advertising Appeals
Types of advertising depending on persuasion strategies:
- Negative Appeal: An ad that suggests something is dangerous to arouse curiosity.
- Humor Appeal: Designed to make the viewer laugh and remember the brand. Example: Etrade Commercial—humorous ads that stick in your mind.
- Sex Appeal: Ads that appeal to the desire to be attractive. Example: Commercials that associate the product with attractiveness.
- Fear Appeal: Ads that highlight natural fears and suggest that the product offers protection.
- Comparative Appeal: Ads that compare two competing products to highlight the advantages of one over the other.
Common Advertising Techniques
- Testimonial: Ordinary people say how good a product is.
- Endorsement: A famous person recommends the product.
- Problem Solving: The ad presents a solution to a common problem.
- Scientific Ad: Shows favorable test results to support the product’s effectiveness.
- Demonstration Ad: Demonstrates how the product works in practice.
- Lifestyle Ad: Connects the product with a glamorous or desirable way of life.
- Bandwagon: Shows that many people are using the product (“everyone is doing it”).
Case Study: Bulgari’s “Unexpected Wonders” Campaign
This section focuses on advertising strategies and marketing techniques in fashion, specifically analyzing Bulgari’s “Unexpected Wonders” campaign.
Why This Campaign is Compelling
It’s a luxury ad that combines elegance, emotion, and celebrity power. It features Anne Hathaway and Zendaya, celebrates beauty, friendship, and joy, connects with audiences through values and storytelling, and represents modern and global advertising.
Key Advertising & Marketing Strategies
- Celebrity Endorsement: Appeals to diverse audiences.
- Emotional Appeal: Joy, freedom, friendship.
- Aspirational Lifestyle: Luxury, travel, elegance.
- Visual Storytelling: Music and images speak more than words.
- Brand Identity: Bulgari = timeless beauty + emotion.
Lessons from the Campaign
- Ads use emotions and celebrities to attract people.
- Selling a lifestyle, not just a product.
- Visuals, music, and atmosphere matter.
- Fashion ads can be artistic and emotional.
Conclusion: The Power of Advertising
Ads are not only for selling, but to communicate feelings and values. Stories and emotions make advertising powerful and memorable.
Writing Connectors for Effective Communication
- To start: To begin with, Nowadays, It is widely believed that…
- To add ideas: Moreover, In addition, Also,
- To give examples: For example, Such as, In particular,
- To contrast: However, On the other hand, Although,
- To express cause/effect: Because of this, As a result, Therefore,
- To express opinion: I think that… In my opinion, Personally, I believe that…
- To organize ideas: Firstly, Secondly, Finally,
- To conclude: In conclusion, To sum up,