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�How to Build a Marketing Strategy

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End In Mind:�The Goal�The 5 “C”s�The 4 “P”s�Strategy

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Let’s explore with a series of ___________ questions?

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How does this happen?????

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Innovation Delivers Differentiation

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What IS a business?

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What is THE goal of a business?

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What do we OPTIMIZE?

“Profit is not the purpose of a business, but rather the test of its validity.

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PROFIT results from Satisfying Needs

“VALUE is shared by both the business and the customer:

Business: Revenue/Profit

Customer: satisfied needs.”

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The Father of Modern Management

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“A Business Creates Value by doing Two Things:”

Innovate

Go To Market

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Innovation solves Small Problems and…..

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Innovation solves Big Problems

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Innovation is DISRUPTIVE

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The 4 P’s

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The Marketing Mix

Product

Place

Promotion

Price

Product

Place

Price

Promotion

Target

Market

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The 4 P’s Marketing Mix Optimizes VALUE Creation

Product: the features and appearance of goods and services

Price: how much customers pay for a product

Promotion: how customers are informed about the products

Place: the point where products are made available to customer

Marketing Mix

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The 4 P’s

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roduct

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Product Life Cycle

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B2C - Consumer Behavior

PHYSIOLOGICAL OR SURVIVAL NEEDS

SAFETY NEEDS

LOVE, AFFECTION, AND

BELONGINGNESS NEEDS

ESTEEM NEEDS

Need

Self

Actualize

1. Understanding Consumer Needs:

• This pyramid represents Maslow’s Hierarchy of Needs, which is a useful framework for understanding consumer motivation in a B2C context.

• Consumers’ buying behavior is often driven by where they fall on this hierarchy, which progresses from basic needs at the bottom to higher-level psychological needs at the top.

2. Physiological or Survival Needs:

• At the base are physiological needs—these are the most fundamental human requirements, such as food, water, and shelter.

• Products and services that address these needs are essential and often prioritized by consumers. In a marketing context, these could include groceries, healthcare, and basic utilities.

3. Safety Needs:

• Once basic needs are met, consumers seek safety and security. This includes physical safety, financial security, and health.

• Examples of products meeting these needs are insurance, home security systems, and products with a focus on durability and reliability. Highlighting safety features in marketing materials can attract consumers who prioritize this level.

4. Love, Affection, and Belongingness Needs:

• As we move higher, we find needs related to social connections. Consumers want to feel loved and like they belong to a group.

• Products addressing these needs often emphasize community, relationships, and social value. Examples include social media platforms, family-oriented products, and membership clubs.

5. Esteem Needs:

• Esteem needs relate to self-respect, recognition, and status. Consumers at this level seek products that provide a sense of accomplishment and prestige.

• Marketing strategies here often highlight luxury, quality, and the status that comes with owning the product. High-end brands and luxury items appeal to this segment by focusing on exclusivity and brand reputation.

6. Self-Actualization Needs:

• At the top of the pyramid is self-actualization, where individuals seek personal growth, self-fulfillment, and achieving their full potential.

• Products in this category encourage consumers to reach their goals and improve themselves. Marketing for these products focuses on personal development, creativity, and experiences—such as travel, education, and wellness programs.

7. Applying the Hierarchy in Marketing:

• When crafting a B2C marketing strategy, it’s essential to consider which level of need your product addresses.

• Understanding where your target consumer sits on this hierarchy can inform the messaging, positioning, and value proposition of your offerings. The goal is to align your product benefits with the consumer’s specific motivational drivers.

Summary:

• Maslow’s Hierarchy of Needs provides a structured way to analyze and predict consumer behavior, helping brands connect with consumers on a deeper psychological level. By aligning marketing efforts with these fundamental needs, we can create more compelling, relevant, and effective messaging.

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Money Page: Lifebike

Features	Benefits
Independent Crank System	Safe & Comfortable Ride
Ergonomic Riding Position	Safe & Comfortable Ride
Carbon Fiber Frame	Portable and Compact for Easy Storage
Lithium Ion Powered Battery	Be Green, don’t Sweat

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lace

(Distribution)

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Go To Market - Sales

Manufacturer

Consumer

Retailer

Wholesaler

Agent

2 level

3 level

4 level

5 level

Types of Channels

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Go To Market - Sales

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romotion

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Marketing Communication Mix

Advertising

Sales Promotion

Direct Marketing

Public Relations

Personal Selling

Marketing Mix

1. Overview of the Marketing Communication Mix:

• This slide illustrates the five core components of the marketing communication mix: Advertising, Sales Promotion, Personal Selling, Public Relations, and Direct Marketing.

• Each of these elements plays a unique role in how we connect with and influence our target audience. By strategically combining them, we can create a comprehensive approach to our marketing efforts.

2. Advertising:

• Advertising involves paid messages designed to inform, persuade, or remind consumers about a product or brand.

• It can take various forms, including digital ads, TV commercials, print ads, and billboards. Advertising is powerful for building brand awareness and reaching a wide audience.

3. Sales Promotion:

• Sales promotions are short-term incentives designed to encourage the purchase or sale of a product or service.

• Examples include discounts, coupons, flash sales, and special offers. These promotions are effective for driving immediate customer action and can help boost sales during specific periods.

4. Personal Selling:

• Personal selling is a one-on-one interaction between a sales representative and a potential customer.

• This approach is particularly effective for complex or high-value products, as it allows for personalized engagement and direct feedback.

• Through personal selling, we can address specific customer needs and build strong relationships that drive loyalty.

5. Public Relations (PR):

• PR involves managing the public image of the company and communicating with key stakeholders.

• It includes activities like press releases, media events, and community outreach. PR helps build a positive brand reputation, enhances credibility, and generates earned media.

6. Direct Marketing:

• Direct marketing is focused on direct communication with targeted customers to drive a specific action.

• Examples include email marketing, direct mail, SMS marketing, and targeted online ads. This approach allows for personalized messaging and is measurable, making it easy to track ROI.

7. Integration of the Marketing Mix:

• The key takeaway is that a successful marketing strategy integrates these five components to create a cohesive and consistent message.

• By leveraging each element effectively, we can maximize reach, engage our audience, and drive both short-term sales and long-term brand loyalty.

Summary:

• Remember, the Marketing Communication Mix is about using the right combination of these tools to reach our target audience effectively. Each component serves a different purpose, and when they work together, they create a strong, unified strategy.

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Digital Marketing Mix

1. Introduction to the Digital Marketing Mix:

• Today, we’re diving into the three pillars of the digital marketing mix: Earned, Owned, and Paid media.

• Understanding these categories helps us create a balanced and effective digital marketing strategy by leveraging each type’s unique strengths.

2. Earned Media:

• This represents any form of publicity gained organically—without paid advertising.

• Examples include reviews, media coverage, guest posts, mentions, social shares, and free influencer posts.

• Earned media is a powerful tool because it builds credibility and trust. It’s essentially the digital equivalent of word-of-mouth and is often seen as the most authentic.

3. Owned Media:

• These are channels that your business controls directly, like your website, blog, email lists, social profiles, and other online properties.

• Owned media forms the foundation of your brand’s online presence. It provides a space where you can control the narrative and directly engage with your audience.

• Since you have direct control over these channels, it’s crucial to ensure they’re well-managed, consistently updated, and aligned with your brand’s voice and messaging.

4. Paid Media:

• Paid media refers to marketing efforts that involve a financial investment to reach target audiences.

• Examples include pay-per-click ads, display ads, remarketing, retargeting, paid social posts, native ads, and paid influencers.

• The advantage of paid media is that it allows you to scale quickly and reach a broader audience with targeted messaging.

5. Optimal Mix:

• The key takeaway here is that the optimal digital marketing strategy leverages a balanced mix of earned, owned, and paid media.

• Each of these types of media works best when complemented by the others. Owned media provides a foundation, earned media amplifies your message through credibility, and paid media extends your reach.

• By strategically combining all three, you can maximize your brand’s visibility, engagement, and impact.

Summary:

• Remember, successful digital marketing doesn’t rely solely on one type of media. Instead, it leverages the strengths of each to build a robust and comprehensive strategy.

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Mediums – Sophisticated to Unsophisticated

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Digital Media - Influencers

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Brand Creation

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Price

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How to think about Costs

“You must know your cost structure on both a Per Unit and Scaled level!”

Profit = Revenue – Costs

“However, Costs don’t drive Pricing……

A Customer’s Willingness To Pay Drives Pricing.”

DESIRABLE

FEASIBLE

The

Sweet

Spot

Where do your ideas fit?

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How to think about Price

VALUE

Perceived Value

Markup

Cost

Cost Plus

Value-Based

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Strategy

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Strategy

Segmentation

Targeting

Positioning

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Strategy

Segmentation

Identify and describe market segments

Targeting

Evaluate segments and decide

which to go

after

Positioning

Involves creating an identity/ image of the brand or product within the target customers’ minds

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The Marketplace

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Strategy

Segmentation

Targeting

Positioning

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Market Segmentation

Not Everyone Wants Your Product!

Market Segmentation:

“is sub-dividing a market into distinct and homogeneous subgroups of customers, where any group can conceivably be selected as a target market to be met with distinct marketing mix.”

Philip Kotler

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Classic Segmentation

Geographic

Demographic

Behaviourial

Psychographic

“Customers within 10 miles of Minsk”

“Moms over the

age of 30”

“Early adopter technologist seeking latest gadget”

“Customers who prefer to buy organic food”

“Customer

location

Region

Urban/Rural

Land type

“Age

Gender

Occupation

Socio-

economic

Group

“Rate of usage

Benefits sought

Loyalty status

Readiness to

purchas

Personality

Lifestyles

Attitudes

Class

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Why it is Important….

DESIRABLE

“You must secure a large enough segment to secure your profitability!”

FEASIBLE

The

Sweet

Spot

Where do your ideas fit?

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Strategy

Segmentation

Targeting

Positioning

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Target Market

A SUBSET OF CUSTOMERS YOUR BUSINESS CAN AND WANTS TO SERVE

"Nobody fails for failing to build their product--it's for failing to find customers."

Diana Kander, author

All in Startup

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Strategy

Segmentation

Targeting

Positioning

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Positioning

“There are only two business strategies.”

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Positioning

Low Cost

Differentiation

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Positioning

Low Cost

Differentiation

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Differentiation

2_D

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Differentiation Factors

Products can be offered with varying features that supplement the basic function

Price
Form
Features
Customization
Performance
Quality
Durability
Reliability
Reparability
Style

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Marketing Strategy Model

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Design a Strategy

Segment the Market
Select a Target
Position within the Target

Customer Needs
Company Skills
Competition
Collaborators
Context

Product

Place

Price

Promotion

Target

Market

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The 4 P’s

1

2

3

4

Product

Place

Price

Promotion

Target

Market