Strategic Marketing Principles and Market Analysis

1. Fundamentals of Marketing

What is Marketing?

• Marketing is a set of activities and processes to create, communicate, and deliver value to customers, partners, and society, according to the American Marketing Association (AMA).
• It is not just selling; it is about understanding the customer, creating value, and building long-term relationships.

Historical Evolution of Marketing

1. Merchandise (until 1930): Focus on distribution.
2. Institutional (1930-40): Analysis of the commercial channel.
3. Functional (1940-50): Value chain study.
4. Decisional (1950-60): Strategic decision-making.
5. Exchange (1960-70): Marketing as a transaction.
6. Social (1980-…): Applied also to NGOs.
7. Megamarketing (1990-…): Strategic and holistic view.

Marketing Orientations Over Time

• Production: Focus on quantity and low cost.
• Product: Emphasis on quality.
• Sales: Priority on volume.
• Customer: Meeting real needs.
• Social: Focus on well-being and sustainability.

Basic Marketing Concepts

• Need, want, and demand.
• Product and utility.
• Exchange and value.
• Segmentation, positioning, and value proposition.
• Product life cycle.

Marketing’s Role in a Company

• Set pricing, distribution channels, and communication plans.
• Generate long-term value.
• Collaborate with sales and operations teams.

The Marketing Mix (4Ps + 3Ps)

• Product: Levels and life cycle.
• Price: Cost-based, demand-based, and competition-based strategies.
• Promotion: Advertising, PR, sales promotion, and direct marketing.
• Place: Intensive, selective, and exclusive distribution.
• Extended Mix: People, Processes, and Physical Evidence.

Customer Orientation and Positioning

• The customer is at the center of the business.
• Create memorable experiences.
• Positioning map: Customer perception versus competitors.

The Marketing Plan

• Environmental analysis (internal and external).
• Commercial strategies (4Ps).
• Organize sales activities.
• Helps define goals, improve processes, and align company vision.

2. The Marketing Environment

Definition of Marketing Environment

• A set of external forces that influence the acquisition of inputs and production outputs (Pride & Ferrell).
• Includes VUCA (Volatile, Uncertain, Complex, Ambiguous) and BANI (Brittle, Anxious, Non-linear, Incomprehensible) environments.

Adapting to Change

• The environment is constantly evolving.
• Adaptation is needed in production processes and the value chain to remain competitive.

Macro vs. Micro Environment

• Macro: External and uncontrollable factors (economic, social, technological, political, etc.).
• Micro: Close and controllable factors (suppliers, customers, competition, intermediaries, public).

Macro Environment Variables (STEP + Nature)

• Social: Cultural and demographic changes.
• Technological: Innovation and digital transformation.
• Economic: Crises, inflation, employment, and purchasing power.
• Political: Laws, regulations, and lobbies.
• Nature: Scarcity, pollution, and energy issues.

Micro Environment Variables

• The company and departments must align.
• Suppliers: Crucial in the supply chain.
• Customers: Conversion funnel (leads, prospects, clients).
• Intermediaries: Distributors and financial actors.
• Competitors: Analyzed via Porter’s 5 Forces.
• Lobbies and stakeholders: Employees, local community, and social groups.

Competitive Strategies

• Companies compete to provide higher value and better experiences.
• Involves the use of the marketing mix, pricing, promotions, and positioning.

Types of Markets

• By number of players: Monopoly, oligopoly, perfect competition, and monopolistic competition.
• By lifecycle stage: Emerging, mature, and declining.
• By customer need: Consumer (B2C), industrial, institutional, government, and global.

Mass and Service Markets

• Mass markets: Quick decisions, low price, and high turnover.
• Service markets: Intangible, variable quality, and focus on talent and experience.

Online Marketing and E-commerce

• Changed consumer behavior.
• Benefits: Convenience, personalization, loyalty, and lower costs.
• Difference: E-commerce is proprietary; marketplaces are shared.
• Ethical concerns: Privacy (GDPR), spam, and fraud.

3. Marketing Information Systems (MIS)

The Importance of Information

• Supports decision-making: problem-solving, risk assessment, and forecasting.
• Helps improve products, market share, audience targeting, and competition handling.
• Enables strategic planning and control in marketing.

What is a Marketing Information System (MIS)?

A continuous system of people, tools, and processes to collect, analyze, and distribute data. It consists of 4 components:

1. Internal Records: Company’s internal data (financial, logistics, sales, etc.).
2. Marketing Research: Focused investigation of a specific problem.
3. Marketing Intelligence: Broad and ongoing market monitoring (trends, press, competitors).
4. Decision Support System (MDSS): Tools and software for predictive analytics and scenario planning.

Data Sources and Research Methods

• Primary: Direct data from surveys, interviews, and observation.
• Secondary: Pre-existing data (books, reports, studies).
• Tertiary: Summaries (encyclopedias, bibliographies, textbooks).
• Quantitative: Measurable and number-based (e.g., surveys).
• Qualitative: Descriptive and interpretation-based (e.g., focus groups).
• Mixed methods provide better insights for decisions.

The Market Research Process

1. Define objectives.
2. Identify audience and data type.
3. Choose method and sample.
4. Plan data collection.
5. Analyze results.
6. Communicate findings (repeat if needed).

Data Lifecycle and Collection Techniques

Lifecycle: Generation > Collection > Processing > Storage > Management > Analysis > Visualization > Interpretation.

Techniques:

• Surveys: Physical or digital, fast and scalable.
• Interviews & Focus Groups: Personal but time-consuming.
• Observation: Real-time insights on behavior.
• Transactional Tracking: Purchase data.
• Online Tracking: Cookies and pixels.
• Forms: Contact and segmentation data.
• Social Media Monitoring: Engagement and trends.

4. Understanding Consumer Behaviour

Definition and Importance

• Study of how consumers choose, use, and dispose of products.
• Includes emotional, mental, and behavioral responses.
• Influences segmentation, product development, pricing, and branding.
• Helps businesses deliver what customers want and improves brand acceptance.

Factors Influencing Consumer Behaviour

• Psychological: Motivation, perception, learning, and attitudes.
• Social: Family, reference groups, roles, and status.
• Cultural: Beliefs, traditions, values, and language.
• Personal: Age, gender, income, and lifestyle.
• Economic: Income, credit, employment, and inflation.

Types of Buying Behaviour

• Complex Buying: High involvement, significant differences between brands.
• Dissonance-Reducing: High involvement, few brand differences.
• Variety-Seeking: Low involvement, significant brand differences.
• Habitual: Low involvement, few brand differences.

The Buying Decision Process

1. Need recognition: Internal or external triggers.
2. Information search: Online, reviews, and past experience.
3. Evaluation of alternatives: Compare features, price, and value.
4. Purchase decision: Influenced by attitudes and situational factors.
5. Post-purchase behavior: Satisfaction leads to trust and loyalty.

The Marketer’s Role

• Make the brand memorable and accessible.
• Close the gap between intention and purchase.
• Enhance customer experience and satisfaction.
• Enable financing, delivery, and cross-selling services.

5. Market Segmentation and Targeting

What is Market Segmentation?

• Dividing a large market into smaller groups with common characteristics.
• Helps understand customer needs and adapt marketing strategies accordingly.

The STP Process

1. Segmentation: Group customers with similar needs.
2. Targeting: Select the most attractive segments.
3. Positioning: Communicate a value proposition to the selected segment.

Benefits and Requirements

• Benefits: Clarity, customer insights, brand loyalty, and cost efficiency.
• Requirements: Segments should be Profitable, Measurable, Accessible, and Stable.

Segmentation Types

• Demographic: Age, gender, income, etc.
• Geographic: Region, city, etc.
• Psychographic: Lifestyle, values, and opinions.
• Behavioral: Past behavior and purchase habits.

Targeting and Segment Coverage Strategies

• Undifferentiated: Same offer for all segments.
• Differentiated: Different strategy for each segment.
• Concentrated (Niche): Focus on one small segment.
• Target Audience: The most likely group to engage with your offer, determined via research and buyer personas.

6. Positioning and Differentiation Strategy

Defining Positioning

• Designing the company’s offering to occupy a distinct place in the minds of the target market (Kotler).
• Shapes perception and aligns offerings with audience needs.

Differentiation Strategy

• Vertical: Based on measurable attributes like price and quality.
• Horizontal: Based on preferences like style or flavor.

Porter’s 5 Levels of Product

• Core Benefit: Main reason for purchase.
• Basic Product: Minimum expected features.
• Expected Product: Aligns with customer expectations.
• Augmented Product: Exceeds expectations.
• Potential Product: Future innovations.

Unique Selling Proposition and Competitive Advantage

• USP: A clear statement of what makes your product distinct.
• Competitive Advantage: Value perceived by the customer minus the firm’s cost.
• Comparative: More efficient production.
• Differential: Higher quality or uniqueness.
• Main Strategies (Kotler): Cost, Differentiation, and Focus.

Positioning Strategies and Statements

• Strategies: Price, Application, Customer Needs, Quality, or Cultural Values.
• Statement Structure: Target Market, Target Audience, Category, and Differentiators/Benefits.
• Perceptual Maps: Visual tools to compare brands based on key attributes.

Final Notes on Positioning

• Internally align your team with the positioning.
• Consistency across touchpoints is key.
• Evaluate success through visibility, uniqueness, and customer feedback.