Marketing is the process of identifying, stimulating, and satisfying customer needs and wants. It has evolved from a production focus to a customer focus, positioning products in customers' minds through branding and using customer input. The goal is to build lasting customer relationships through personal selling and technology to retain customers. Basic marketing frameworks include analyzing the marketing environment, communications processes, message effectiveness, customer profiles, buying stages, product adoption rates, competitive positioning, and developing marketing communications strategies.

1. What is Marketing?
… the process to of
identifying, stimulating
and satisfying customer
genuine wants and
needs. ..

2. Marketing Theory History
Production Selling Marketing Relationship
“Feature based “Benefit based “Positioning in Building
product focus” customer wants the customer’s “Building lasting
and needs” Mind through ties to retain
Branding and customers
use of customer through
input” applying personal
selling to mass
markets with
Make customers brand loyal technology”
Create corporate equity
Retain channel power
Pull customers to the point of purchase
Think needs not products within core competencies

3. Basic Marketing Frameworks
 Marketing environment
 Communications process
 Message effectiveness model
 Customer qualification pyramid
 Stages of buying
 Product diffusion/adoption
 Competitive positioning
 MC* strategic development
*Marketing Communications

4. Marketing Environment
Political-Legal
Technological c t
Pr
du
ici
o
Pr Competitive
ng
Also public
Target
relations and Market
n
Pr
io
politics
o
ut
m
ib
ot
str
io
n
Di
Economic
Social-Cultural
From Marketing by Richard Sandhusen, Barron’s, 2000, 82.

5. Communications Process
Sender Encoding Message Decoding Receiver
Media

6. Message Effectiveness Model
 Received – target the right audience
 Attended to – break through the clutter
 Understood – language, graphics, symbols
 Believed – authenticity,trusted authority or
brand
 Remembered – repetition, visualization, brand
 Acted upon – ask for the sale, call to action

7. Stages of Buying
“Hierarchy of Effects”
 Create awareness
 Establish product recall, brand recognition and identity
 Create interest
 Impart information, increase comprehension and knowledge for
evaluation
 Develop desire
 Create attitudes of liking and preference; positioning
 Create conviction
 Trial use, test drive
 Induce action (behavior)
 Adoption/purchase
 Reduce cognitive dissonance (behavior)
 Reinforce decision to buy, filter out unfavorable data

8. Product Diffusion Model
How are these segments
different in motivation, attitude
and behavior?
Early
Adopters:
13.5% Early Late Laggards: 16%
Majority Majority
34% 34%
Innovators: 2.5%  Crossing the Chasm, Geoffrey Moore, 1991

9. Competitive Positioning Model
Performance
1: Compete by
offering better
functionality
Most demanding
2: Compete with
improvements in
reliability & trust
Main stream
3: Compete with 4: Compete on a
Least demanding convenience: speed, price basis
responsiveness, custom.
Time
Clayton Christensen. (2000). After the Gold Rush. Innosight, LLC

10. Competitive Positioning Model
Performance
1: Compete by
offering better
functionality
Most demanding
2: Compete with
improvements in
reliability & trust
Main stream
3: Compete with 4: Compete on a
Least demanding convenience: speed, price basis
responsiveness, custom.
Time
Clayton Christensen. (2000). After the Gold Rush. Innosight, LLC