## What is Marketing?

- Find out the needs of your customers
- That helps to develop products that meet those needs
- Create communication that creates demand for those products
- Define/Design how to distribute those products

There are two dimensions to this, the **strategy** (needs) and **operational** (product, price, communication and distributing). Which then create two types of marketing:

## Strategic Marketing

Its mission is to study the needs of the market and its evolution, to detect opportunities and threats that, combined with the resources and capabilities of the company, allow defining a strategy that represents a long-term sustainable competitive advantage and is consistent with the mission and the general strategy of the business.

It helps us to reflect on the values of the company to know where we are and where we want to go.

Example: Differentiation of the competition for the quality of the product.

**Strategic Marketing Plan =**
+ Analysis of the situation
+ Diagnostic of the situation
+ Marketing objectives
+ Marketing strategies
+ Operational decisions

## Functions
1. D

## Operational Marketing

# 01 - Define the Market Potential and the competition

Group of people or companies with the ability to use or buy a product to cover a need

**Example:**
Define the potential market in which to compete.

*Need:* communication
*Potential market:* Mobile phone users

# 02 - Segment the potential market

## What is Segmentation
Divide the potential market into some smaller markets, with different commercial behavior in order to apply a specific marketing plan to each one of them.

## What characteristics do these segments have
**Homogeneous**: Grouping similar customers.
**Substantial**: Having enough sales potential.
**Accessible**: Being able to reach them with reasonable efforts.

![[07-Marketing-Fundamentals 2022-05-26 20.46.58.excalidraw]]

## Segmentation of the potential consumer market 

**Who buys?**

- Demographic Variables
  - age 
  - sex
  - family size

**Why do the buy?**
- Functionality
- symbol
- quality

**How they buy?**
- Faithful to brand → strong, changing, none
- frequency of use → high, medium, low

## Segmentation of the potential business market 

**What benefits?**
Operation or performance needs that the product us meet

**To whom?**
According to the profile of the business customers

**How to they buy?**


# 03 - Demand analysis and forecasts

- Statistical Analysis (time series)
- Correlated indexed (births/diapers)
- Chain proportion (multiplication of percentages)
- Construction of market (combine the demand of several segments)
- Others....

# 04 - Analyze the competition

- Number of direct competitors
- How many competitors supports the town???? :/
- What share of the market is captured by the major competitors
- What is the service image that the people have of the main competitors.
- What basic advantages do main competitors have.
- Do the competitors have cost advantages.
- Are there competitors with differentiation advantages? What type of differentiation?
- Are there barriers of entry for new competitors?
- What are the main barriers of entry?

# 05 - Select the market segment(s)

# 06 - Position yourself in the segment(s)/market