Marketing Concepts and Models

© Copyright Jeremy Kravetz 2014

INTRODUCTION

► The American Marketing Association – Definition of Marketing:

“The activity, set of institutions, and processes for creating, communicating, delivering, and

exchanging offerings that have value for customers, clients, partners, and society at large.”

► Peter Drucker – re the paramount role of marketing:

Responsibility of the managing leadership within a business, not a separate function.

There is only one valid definition of business purpose: to create a customer… Because it is its purpose

to create a customer, any business enterprise has two — and only these two—basic functions:

marketing and innovation…

Marketing is so basic that it is not just enough to have a strong sales department and to entrust

marketing to it. Marketing is not only much broader than selling; it is not a specialized activity at all. It

encompasses the entire business. It is the whole business seen from the point of view of its final result

- that is from the customer’s point of view. Concern and responsibility for marketing must therefore

permeate all areas of the enterprise..

► Lifetime value of a customer

► Types of product/service Utility – form, place, time, ownership

MARKET ANALYSIS

► Faith Popcorn’s Brain Reserve – Futurist – http://www.faithpopcorn.com/

17 Trends:

1. 99 lives 2. anchoring

3. atmosfear 4. being alive

5. cashing out 6. Clanning

7. cocooning 8. down aging

9. ergonomics 10. EVEolution

11. fantasy/venture 12. future tense

13. icon toppling 14. pleasure revenge

15. save our society 16. small indulgence

17. vigilante consumer

► Competitors – Key competitors are those that area now where you want to be. Who is serving the clients you want to have.

► Demand Elasticity

MARKETING CONCEPTS AND MODELS

© Copyright Jeremy Kravetz 2014

► Market analysis – Demand. Supply. Gap.

► Porter’s 5 Forces Analysis – Forces that shape competitive landscape: (1) Rivalry among existing competitors; (2) Threat of new entrants; (3) Bargaining power of suppliers; (4) Bargaining power of buyers; (5) Threat of substitute products or services.

► Product Life-Cycle

► Segmentation:

Demographic, psychographic

Product service design

Ideal segment for communication/promotion: (1) Definable: (2) Measurable; (3) Locatable; (4)

Accessible for communication; (5) Large enough for ROI/profit potential

► S.W.O.T. Analysis (Strengths, Weaknesses, Opportunities and Threats) – Apply to your own organization,

to your customers, and to your competitors.

► Trade Area

COMPETITIVE STRATEGIES

► 4 “Ps” – Product, Price, Place, Promotion

► Attribute clustering, layering – The whole is more than the sum of the parts. Gestaldt. Elements interact,

carry symbolism and energy. People perceive and process symbolically.

► Business personality

► Energized Differentiation (John Gerzema):

3 key components/dimensions: (1) Vision; (2) Inventiveness/innovation; (3) Dynamism/ momentum

Created by “attribute clustering” - creation of feature/attribute Gestaldts

► Mass media relations. Use of free mass media. How to get reporters, writers, etc. feature your business.

► Positioning – How do consumers regard you in relation to your competitors. To what is going on in

society.

► Product – What does it do? What does it NOT do?

► Product/Service Utility – form, place, time, ownership

► Psychological/emotional consumption motivators:

Profit

Pleasure

Ease/reduction of effort

Fear/Safety

Avoidance of pain/discomfort

Social acceptance/need for belonging

MARKETING CONCEPTS AND MODELS

© Copyright Jeremy Kravetz 2014

► Raison d'être

► Segmentation:

Demographic, psychographic

Product service design

Ideal segment for communication/promotion: (1) Definable: (2) Measurable; (3) Locatable; (4)

Accessible for communication; (5) Large enough for ROI/profit potential

► Social responsibility - As a competitive strategy. Environmental. Social. Economic justice. Fair Trade. Fair

labor practices. Paying taxes. Obeying the laws. Wholesome product and services. Doing more than the

minimum required.

► S.W.O.T. Analysis (Strengths, Weaknesses, Opportunities and Threats) – Apply to your own organization,

to your customers, and to your competitors.

► Viral marketing – “Infect” key “centers of influence.” People there will spread the word among their

constituents, members, friends, community, etc.

DESIGN PROCESS

► Consumer touch-points

► Customer vs. Consumer – e.g. Children = Consumers / Parent = customers/buyer

► Customer Experience

► Emotional benefit design – People buy on the basis of emotional needs: Fear, safety, pleasure, comfort,

pain avoidance, desire to minimize effort to produce a result, desire to produce a greater result with the

same effort, profit, need for belonging (to a group, club, community, etc.). This applies to both B2B and

B2C. (people are still people).

► Emotional process design – Breaking down every step of a process that engages a customer (or potential

customer) to understand the emotional responses produces by your features and actions.

► Energized Differentiation (John Gerzema):

3 key components/dimensions: (1) Vision; (2) Inventiveness/innovation; (3) Dynamism/ momentum

Created by “attribute clustering” - creation of feature/attribute Gestaldts

► FAB Analysis – Features > Advantages > Benefits. People buy Benefits, not Features. BAF – open with

Benefits, then follow up with Advantages and Features.

► Integrated marketing – Combining various elements into a systematic, synergistic whole.

► Internal marketing – Marketing to employees, so that they are infected with your mission, vision, and

customer satisfaction strategies and tactics.

MARKETING CONCEPTS AND MODELS

© Copyright Jeremy Kravetz 2014

► Place – Not only products, but everywhere your brand is present. Physical distribution. Communication

channels. Viral infection of key centers of influence. Key relationships.

► Product/Service Utility – form, place, time, ownership

► Psychological/emotional consumption motivators:

Profit

Pleasure

Ease/reduction of effort

Fear/Safety

Avoidance of pain/discomfort

Social acceptance/need for belonging

► Segmentation:

Demographic, psychographic

Product service design

Ideal segment for communication/promotion: (1) Definable: (2) Measurable; (3) Locatable; (4)

Accessible for communication; (5) Large enough for ROI/profit potential

► Social responsibility - As a competitive strategy. Environmental. Social. Economic justice. Fair Trade. Fair

labor practices. Paying taxes. Obeying the laws. Wholesome product and services. Doing more than the

minimum required.

► S.W.O.T. Analysis (Strengths, Weaknesses, Opportunities and Threats) – Apply to your own organization,

to your customers, and to your competitors.

TACTICS/INTEGRATED SYSTEM

► Attraction, capture, conversion, retention, infection, motivation, reinforcement

► Integrated marketing – Combining various elements into a systematic, synergistic whole.

► Internal marketing – Marketing to employees, so that they are infected with your mission, vision, and

customer satisfaction strategies and tactics.

► Personal sales – Can be highly effective. Time consuming. Can leverage greatly by selecting viral infection

points, center of influence, using PR to leverage mass media.

► Place – Not only products, but everywhere your brand is present. Physical distribution. Communication

channels. Viral infection of key centers of influence. Key relationships.

► Power of public/mass media relations. Use of free mass media. How to get reporters, writers, etc.

feature your business.

► Pricing Yield Management (e.g. hospitality, airlines)

► Promotion – Designed to motivate immediate action

MARKETING CONCEPTS AND MODELS

© Copyright Jeremy Kravetz 2014

► Relationship marketing

► Viral marketing – “Infect” key “centers of influence.” People there will spread the word among their

constituents, members, friends, community, etc.

ECONOMICS

► Marketing ROI – Ideally every marketing dollar spent should produce a return-on-investment

MARKETING CONCEPTS AND MODELS