Core Marketing Principles and Strategic Frameworks

Fundamentals of Marketing

Marketing is the process of planning, designing, pricing, promoting, and distributing ideas, goods, and services to satisfy customer needs so as to make a profit. There are two main elements in the marketing process: market research and developing a suitable marketing mix (the 4 Ps). Selling and customer care are also important elements of the marketing process.

The Marketing Mix Principles

Principles are controllable variables which must meet the needs of the defined target group. All elements of the mix are linked and must support each other.

The Four Ps

• Product: The features and appearance of goods and services (what to sell).
• Price: How much customers pay for a product (what prices to exchange).
• Place: The point where products are made available to customers (how it will be distributed and where people will buy).
• Promotion: How customers are informed about the product (how the product will be supported with advertising).

Marketing Planning and Strategy

Marketing planning involves identifying marketing aims and objectives and focusing on sales levels, market share, and market positioning; today, these should aim to be innovative. It involves three key elements:

• Identifying market objectives
• Selecting target markets
• Developing an appropriate marketing mix

Marketing strategy involves planned choices about which part of the market to focus on and compete within the target market, based on an analysis.

The AIDA Model

AIDA is an acronym which represents the steps a marketer takes in order to persuade customers to buy a product:

• Attention (Grab): Marketing must attract the customer's attention to the product.
• Interest (Excite): Marketing must create an interest in the product.
• Desire (Create): Marketing must develop a desire to own or have the product.
• Action (Prompt): Marketing must prompt action to purchase.

Environmental Analysis Tools

PESTLE analysis: Political, Economic, Social, Technological, Legal, and Environmental analysis.

STEP analysis (PEST analysis): Sociological, Technological, Economic, and Political factors.

Factors Related to the STEP Analysis

• Sociological factors: Leisure activities, birth rates, and life expectancy.
• Technological factors: Production.
• Economic factors: Unemployment rates and GDP.
• Political factors: Political stability.

SWOT Analysis

This identifies the strengths and weaknesses of a product, service, or company, and the opportunities and threats facing it. Strengths and weaknesses refer to the product itself and are considered internal factors. The external factors, referring to the marketplace, are opportunities and threats.