LP1.1: MARKETING FRAMEWORKS
ANALYZING EFFECTIVE MARKETING THEORIES AND PRINCIPLES
National American University – Online
The American Marketing Association (2013, Para. 1) defines marketing as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large”.
Marketing has 3 marketing frameworks, namely, the 5Cs, STP, and the 4Ps (Iacobucci, 2013, p.6). The table below explains the elements of each framework.
|Definition||The 5Cs is used to analyze the entire business (Iacobucci, 2013, p.6)||STP helps marketing departments build a targeted marketing plan. (Kokemuller, n.a., para. 1)||Allows businesses to analyze the categories involved in marketing a good or a service. (Investopedia, n.a., para. 1)|
|Elements of the framework||CustomerCompanyContextCollaboratorsCompetition||SegmentationTargetingPositioning||ProductPricePromotionPlacePeople (Dunlap, 2017)|
|How to analyze the elements||Customer: who is the customer? The customer’s characteristics and trends (West, n.a., p.7)Company: determine strengths and weaknesses. What customer benefitscan company provide?Context: What is happening in our industry that might re-shape our future business?What other environmental factors should we consider?Collaborators: How to strengthen B2B partnerships?Competition: Who is our competition? What are their likely actions and reactions? (Iacobucci, 2013, p.7)||Segmentation: Because customers are not the same, it is best to determine how customers vary, what they prefer, what their needs are, and what income levels they are. This way, the market can be segmented to target audiences. (Iacobucci, 2013, p.7)Targeting: Pursue group of customers that make the most sense for the company (Iacobucci, 2013, p.7)Positioning: communicate our product’s benefits clearly to the targeted customer base. (Iacobucci, 2013, p.7)||Product: what are the product’s characteristics? Is it a good, or a service? How is it unique from the competition? (Purely Branded, n.a., para. 1)Price: What should the product price be? Is the price competitive with the market? (Purely Branded, n.a., para. 2)Promotion: identify how to market and advertise your product? What medium to use for marketing the product? (Purely Branded, n.a., para. 3)Place: What is the ideal location to convert potential clients into actual clients? (Purely Branded, n.a., para. 4) Should we sell on the web (ebay, amazon)? Is the place easily accessible to thecustomer? Iacobucci, 2013, p.8).People: How the company treats its customers, and employees.|
|Why Is the framework used?||To analyze the 5 key areas involved in marketing decisions.||To determine how to compete in the market.||To help the company take into account the physical barriers that prevent widespread adoption of a product (Investopedia, n.a., para.1).|
Definition of Marketing, (2013), American Marketing Association, Retrieved from https://www.ama.org/AboutAMA/Pages/Definition-of-Marketing.aspx
Dunlap, S. (2017), LP1 Seminar, Retrieved from https://online.national.edu/d2l/im/onlinerooms/RoomDetails.d2l?roomId=2856&tb=Archives&ou=44189
Four Ps (n.a.), Investopedia, retrieved from http://www.investopedia.com/terms/f/four-ps.asp
Iacobucci, D., (2013), Marketing Management (Fourth Edition), Mason, OH, South-Western, Cengage Learning.
Kolemuller, N., (n.a.) What is STP Marketing? Retrieved from http://yourbusiness.azcentral.com/stp-marketing-1769.html
Purely Branded (n.a.), The Four Ps of Marketing retrieved from http://www.purelybranded.com/insights/the-four-ps-of-marketing/
West, (n.a.) Market Analysis and Strategy, retrieved from https://fisher.osu.edu/~west.284/mkt750w05/Slides/slides2.05.ppt.