Marketing Basics: STP, 4Ps, Consumer Behavior

• The primary goal of marketing is to create value for customers and build long-term relationships.

STP Framework

• STP includes Segmentation, Targeting, and Positioning.
• Planning is not part of the STP framework.

4Ps of Marketing

• The 4Ps of marketing include Product, Price, Place, and Promotion.
• A focus on product quality as well as customer experience is important for a strong brand.

STP Strategy Example

• STP can effectively be used to target different types of athletes with customized product lines

Factors Influencing Consumer Buying Decisions

• Cultural, psychological, and social factors influence consumer buying decisions.
• Random selection is not a factor.

Types of Consumer Buying Behaviour

• Complex buying behavior is demonstrated when a customer spends weeks researching before buying a new car

Prospect theory

• Consumers are more likely to avoid losses more than they seek equivalent gains.

Secondary Data

• An example of secondary data is analyzing a published market report from an industry association.
• A SWOT analysis considers internal operations as well as helping businesses understand their competitors.

BCG Matrix

• Stars, Cash Cows, and Dogs are categories in the BCG Matrix, but unicorns are not.

SWOT Analysis

• A company's strong brand reputation is a strength in a SWOT analysis.

Market Segmentation

• The primary purpose of segmentation in marketing is to divide the market into smaller, more manageable groups based on shared characteristics.

Pricing Strategies

• Price skimming is setting a high initial price and then lowering it over time.

Positioning Strategy

• Cost leadership, Differentiation, Market penetration, and Price bundling are positioning strategies a company can make to get ahead of competition.
• A company that offers a luxury product and focuses on exclusivity is using a differentiation positioning strategy.

GoPro’s Marketing Strategy

• GoPro’s marketing success includes leveraging user-generated content to build a brand community.

Beyond Meat’s Marketing Strategy

• The Beyond Meat marketing strategy focuses heavily on creating a lifestyle brand with a sustainability message.

Tesla’s Brand Differentiation

• Tesla’s brand differentiation strategy is built on strong brand loyalty and a focus on innovation.

Successful Market Segmentation

• Netflix offering different content based on user preferences is an example of successfully using market segmentation.
• Sales revenue does not measure the success of a brand’s marketing strategy on its own.

Digital Marketing

• In-store billboards are not a digital marketing channel like social media, SEO, Email Marketing.

Content Marketing

• The primary benefit of content marketing is it helps build long-term relationships with customers through valuable content.
• Influencer marketing is a form of promotion within the 4Ps of marketing.

Social Media Campaigns

• Engagement rate (likes, shares, comments) is the most useful metric in determining the success of a social media campaign.

Remarketing

• Remarketing is targeting customers who have already shown interest in a product but did not make a purchase.

Exam Review

• Primary market research is gathering new data directly from sources while secondary market research uses existing data. An example of primary research is conducting a survey, while an example of secondary research is using government publications.
• The consumer decision-making process involves five key stages: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.
• Mass marketing targets a broad audience with a single message, like Coca-Cola's original approach. Niche marketing focuses on a specific segment with tailored efforts, such as a vegan bakery targeting health-conscious consumers.

Explore marketing principles: the STP framework (Segmentation, Targeting, Positioning), the 4Ps (Product, Price, Place, Promotion). Understand factors influencing consumer buying decisions plus prospect theory and secondary data.