Basic stuff to know

Purpose of business to retain and attract profitable customers

Strategy about aligning resources w/ wants and needs of market
Geography now irrelevant marketing strategy more important learn to anticipate and adapt
changes in technology, political & legal regulations, and cultural/social changes. To anticipate
use Marketing Informatin Systems & Marketing Research (primary or secondary).
Marketing vs. Selling concept: marketing concept thinks market back. Selling concept thinks:
heres what we make, how do we sell it
Marketing Myopia is short sighted approach that focuses on needs of company rather than
needs of consumers
Each member of distribution chain must add value and has diff. marketing mix
SWOT Analysis allows us to identity strengths, weaknesses, opportunities and threats
Strategy depends on controllables & uncontrollables and lifecycle you are in
Porters 5 Forces of competition:
- Potentials for substitutes
- Potential for new competitors
- Bargaining power of suppliers
- Bargaining power of producers
Portfolio businesses: ones that have a variety of products serving a variety of markets
- BCG Matrix- cash cows (low growth/high share/ steady dividends), dogs (low
growth/low share/low potential profit), question marks (high growth/low
share/could become stars or phase out), stars (high growth/high share/lots of
potential)
- GE Business Screen- Business strengths and industry attractiveness + share and
growth potentials. Healthcare high & high

Seven Question of Marketing Strategy
Who are our customers and how do we serve them better than our competitors?
How do we define our market? Southwest Airlines
Which market segment(s) do we serve?
What is our marketing mix?
Where is the life cycle stage of our products?
What is our leverage relative to price-cost position?
What investment position does our portfolio of products have? i.e. cash cow, dog, question
mark or star?

5 Ps (marketing mix):
Price, Product, Place, Promotion, and Participation
Participation makes or breaks companys popularity
Price is the only revenue
Each companies marketing mix is different
PLC
Where a product is in its life cycle.
Intro, Growth, Maturity, Decay or Decline
Marketing mix changes based on point in PLC

TPC
Within product section of marketing mix
You can think about a product in different ways
1) How you think about about a product aesthetically/physically
2.) What you expect a product to do
3.) Augmented- component of product that exceeds expectations
Competitive Advantage
Think Blue Ocean strategy
Real or perceived added value over competitors in eyes of customers
Also can have competitive advantage in price
Focusing scarce resources on selected markets
Paradigm Question & Paralysis Effect
Paradigms are filters that keep out data that doesnt agree w/ us
Paradigm paralysis: a terminal disease of certainty
Going back to 0 rule: when paradigms shift, past success means nothing (think new innovative
technologies)
Maslow & Wants vs. Needs
Primary (physical) and secondary (psychological) needs described by maslows pyramid.
Operates in bottom up fashion
Wants are choices you make learned over time to satisfy needs lead to paradigms
Psychological perceptions that lead to paradigms:
- Exposure: I need a car, car ads become important
- Perception: only pay attention attention to things that interest or agree w/ us
- Retention: remember things we want to
Segmentation, Targeting, and Niching
Think focus funnel:
- Generic market (alcohol)
- Segments within generic (liquor)
- Targets within segments (beer)
- Niches within targets (girly drinks)
What business will fit your core compentency? (what am I good at, what are my ethical
boundaries)
Segment then target to create differential advantage people will pay for that added value
Why segment then target?
- Competition reduced
- Can be in markets before others realize
- Focus capabilities
- Fracturing markets increase during PLC and moves towards maturity.
- Things often fracture then converge. Think iPhone & total care toothpaste.
Position once you segment. Extends PLC growth stage (dont wait until decline). Ways to do so:
-Be first
-Strengthen your current position e.g. Avis
-Carve out an unoccupied position e.g. Dove
-Deposition or reposition the product e.g. Stainmaster Carpet
-Create a new category e.g. portable music!
Positioning S curve: when you create a market for something new few people have adopted it.
It eventually reaches its saturation point at top of curve and then enters decline stage on PLC
To niche a unique capability
- Do a Market Needs Analysis to find problems
- Go into markets and submarkets where core compentencies fit
- Ask: what are barriers to entry
Ways to segment:
- Think demographics: age/sex/income/family life cycles
- Behavioural: kinds of shopping,
- Geographical needs in diff. areas

Tylenol Video
i) Take action based on reducing uncertainty through market information and trusted advice
ii) Get smartest people in the same room and ignore the organizational chart
iii) As the senior executive show up