Ch10. Marketing Fundamentals — Complete Series Review

The Marketing Strategy Framework

Environmental Analysis:
  Macro:    PEST analysis
  Industry: Porter's Five Forces
  Internal: SWOT analysis

Market Strategy:
  STP: Segmentation → Targeting → Positioning

Execution Strategy:
  Marketing Mix: 4Ps (Product · Price · Place · Promotion)
  Services:      7Ps (4Ps + People · Process · Physical Evidence)

Evaluation and Feedback:
  KPI measurement
  CLV and ROI analysis

Marketing Core Comparison Table

┌──────────────────┬────────────────────┬──────────────────────┐
│ Dimension        │ B2C                │ B2B                  │
├──────────────────┼────────────────────┼──────────────────────┤
│ Decision-making  │ Individual/family  │ Buying Center        │
│ Criteria         │ Emotional/functional│ Economic/functional  │
│ Relationships    │ Transactional      │ Long-term partnership│
│ Promotion        │ Advertising/social │ Personal selling/    │
│                  │ media              │ trade shows          │
└──────────────────┴────────────────────┴──────────────────────┘

Key Numbers to Know

5% increase in customer retention = 25–95% increase in profits
SERVQUAL: 5 service quality dimensions
PLC: 4 stages (Introduction · Growth · Maturity · Decline)
Marketing orientations: 3 historical stages (Production · Sales · Marketing)
Promotion mix: 5 elements (Advertising · Personal Selling · Sales Promotion · PR · Direct Marketing)
Global entry modes: Exporting → Contractual → Direct Investment

Top 10 Exam Mistakes

①  STP = Segmentation → Targeting → Positioning (order matters)
②  PLC Maturity = Sales peak but profits decline
③  Skimming = high price at introduction; Penetration = low price at introduction
④  4 service characteristics = Intangibility · Inseparability · Heterogeneity · Perishability
⑤  SERVQUAL = 5 dimensions: Tangibles · Reliability · Responsiveness · Assurance · Empathy
⑥  PUSH = trade-directed; PULL = consumer-directed
⑦  PR = low controllability · high credibility
⑧  Intensive distribution = maximum number of intermediaries
⑨  Licensing ≠ Franchising (different scope)
⑩  CLV = present value of total profits over the full customer relationship

Key Concept Cards

Marketing Core = STP + 4Ps ★★★★★ : Develop strategy (STP) first, then execute tactics (4Ps). Memory tip: strategy before execution, every time

Services 7Ps = 4Ps + People · Process · Physical Evidence ★★★★★ : Add the three human-facing Ps to the classic mix. Memory tip: the extra 3 Ps are all about the service experience

High Involvement = Extensive; Low Involvement = Limited ★★★★☆ : The depth of the purchase decision-making process differs by involvement level. Memory tip: high stakes demand high effort

Practice Quiz (Comprehensive)

Q. In what order should a new startup build its marketing strategy?

Environmental analysis (PEST, competitive analysis, SWOT). 2. Market segmentation and target selection. 3. Positioning decision (differentiation from competitors). 4. Design the 4Ps marketing mix. 5. Allocate budget and execute. 6. Set KPIs, measure, and get feedback. With limited resources, a concentrated targeting strategy combined with digital channels is the most efficient approach.

Q. What is the essential difference between traditional and digital marketing?

Traditional: one-way communication (TV, print), mass exposure, difficult to measure. Digital: two-way and personalized, precise targeting, ROI measurable in real time. Data-driven real-time optimization. Consumers produce content (UGC). The boundary is disappearing: omnichannel is the new standard. Integrating both approaches defines modern marketing.