Marketing Basics: 4Ps, STP & the Marketing Funnel

Product, Price, Place (distribution) and Promotion

People, Process and Physical evidence

Segmentation (divide the market into groups), Targeting (choose which groups to serve) and Positioning (decide how you want them to see you).

Demographic: age, gender, income Geographic: country, region, climate Psychographic: lifestyle, values, personality Behavioral: usage rate, loyalty, benefits sought

Value proposition

Attention (or Awareness), Interest, Desire, Action: the stages a customer moves through toward buying.

Top, middle and bottom of the funnel. TOFU builds awareness (blog posts, social), MOFU builds consideration (guides, webinars, comparisons), BOFU drives the purchase (demos, free trials, offers).

Conversions ÷ total visitors (or leads) × 100. 50 sign-ups from 2,000 visitors = 2.5%.

CAC (customer acquisition cost): what you spend to win one new customer. CLV/LTV (customer lifetime value): the total profit you expect from a customer over the whole relationship.

Churn rate

Click-through rate (CTR)

Need recognition, information search, evaluation of alternatives, purchase decision, post-purchase behavior

Post-purchase cognitive dissonance

Introduction, growth, maturity, decline

Penetration: launch at a low price to win market share fast. Skimming: launch at a high price for early adopters, then lower it over time (common with new tech).

Psychological (charm) pricing

Advertising, public relations, sales promotion, personal selling and direct marketing

Push: promote to retailers and distributors so they push the product to customers. Pull: promote to end customers so they ask retailers for it.

Owned: channels you control (website, email list). Earned: free exposure from others (press, reviews, shares). Paid: ads you buy.

Brand equity

Primary research is new data you collect yourself (surveys, interviews, focus groups). Secondary research uses data others already collected (government statistics, industry reports).

Strengths and Weaknesses (internal), Opportunities and Threats (external)

Stars: high growth, high share Cash cows: low growth, high share Question marks: high growth, low share Dogs: low growth, low share

Market penetration: existing products, existing markets Market development: existing products, new markets Product development: new products, existing markets Diversification: new products, new markets

B2B sells to other businesses: fewer buyers, larger deals, longer sales cycles and more rational decisions. B2C sells to individual consumers, often with more emotional appeals.