Business and Marketing - Class Notes
Date: January 16, 2025
Topic: Introduction to Marketing Strategies
1. What is Marketing?
Definition: The process of promoting, selling, and distributing a
product or service to a target audience.
Objective: To create value for customers, build strong customer
relationships, and drive business growth.
2. Key Elements of Marketing
a. Product
The goods or services offered to meet the needs of customers.
Product Life Cycle (PLC): Stages include introduction, growth,
maturity, and decline.
Product Differentiation: Creating unique features or benefits that
make a product stand out from competitors.
b. Price
The amount customers are willing to pay for the product.
Pricing Strategies:
o Penetration Pricing: Setting a low price to gain market
share quickly.
o Price Skimming: Setting a high price initially and lowering it
over time.
o Psychological Pricing: Setting prices to appeal to
customers' emotional responses (e.g., $9.99 instead of $10).
c. Place (Distribution)
The channels used to deliver the product to the customers.
Types of Distribution Channels:
o Direct Sales: Selling directly to customers (e.g., online store).
o Indirect Sales: Using intermediaries (e.g., retailers,
wholesalers).
Logistics Management: Ensuring timely and cost-effective
delivery.
d. Promotion
The tactics used to increase product visibility and attract customers.
Promotion Methods:
o Advertising: Paid, non-personal communication about
products (e.g., TV ads, online ads).
o Sales Promotion: Short-term incentives to encourage
purchases (e.g., discounts, coupons).
o Public Relations: Building a positive public image through
media relations.
o Personal Selling: Direct interaction between salespeople
and customers.
3. Marketing Strategies
a. Segmentation, Targeting, and Positioning (STP)
Segmentation: Dividing the market into distinct groups based on
characteristics (e.g., demographic, geographic, behavioral).
Targeting: Selecting which market segments to focus on.
Positioning: Developing a marketing strategy to position the
product in the minds of the target audience.
b. The 4Ps of Marketing:
1. Product
2. Price
3. Place
4. Promotion
c. Customer-Centric Marketing
Focus on delivering value that meets the needs and desires of
customers.
Collecting and analyzing customer feedback for continuous
improvement.
Customer Relationship Management (CRM): Systems and
strategies to manage and analyze customer interactions and data.
4. Digital Marketing
Definition: The use of online platforms and technologies to
promote products and services.
Key Digital Marketing Tactics:
o Search Engine Optimization (SEO): Improving website
ranking in search engine results.
o Social Media Marketing: Using platforms like Facebook,
Instagram, and Twitter to engage with customers.
o Email Marketing: Sending personalized messages to nurture
customer relationships.
o Content Marketing: Creating valuable content to attract and
engage customers.
5. Case Study: Apple’s Marketing Strategy
1. Product: High-quality, innovative tech products (iPhone, MacBook,
etc.).
2. Price: Premium pricing strategy to reflect quality and exclusivity.
3. Place: Available in Apple stores, online store, and through
authorized retailers.
4. Promotion: Extensive use of advertising (TV, print, digital), events,
and brand loyalty.
5. Positioning: Positioned as a premium, high-end, user-friendly
brand with a focus on design.
6. Trends in Marketing
Influencer Marketing: Leveraging social media influencers to
promote products to their followers.
Personalization: Using data to offer tailored product
recommendations and personalized experiences.
Sustainability Marketing: Marketing eco-friendly products to
meet growing consumer demand for sustainability.
Voice Search Optimization: Adapting marketing strategies to
account for increasing use of voice-enabled devices (e.g., Alexa,
Siri).
Key Takeaway:
Effective marketing requires a deep understanding of customer needs and
the ability to communicate value through various channels and strategies,
all while maintaining a strong brand identity.
