Pierre Murbach

HEG Genève - 2023

Module Ideation - 61-11 IG

MARKETING
An Introduction to Marketing
marketing
what is marketing?

Previously on Marketing 61.11…

• The 5 C’s Analysis, SWOT Analysis, and
PESTLE methods allow you to gain an
understanding of internal and external
factors that affect your business and
market.
• We are now going to define the Market,
Market Size, and Marketplace.

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marketing
marketing strategy

Product differences

USA EUROPE

INGREDIENTS INGREDIENTS
Potatoes, Vegetable Oil (High oleic Potatoes, Vegetable Oil (Rapeseed
Low Linolenic Canola Oil and/or Oil), Dextrose (Sugars), Salt
Canola Oil), Hydrogenated Soybean
Oil, Natural Beef Flavour (Hydrolyzed
Wheat and Hydrolyzed Milk), Citric
Acid (Preservative), Dextrose (Sugars),
Sodium Acid, Pyrophosphate (Maintain
Colour), Dimethylpolysiloxane
(Antifoaming Agent), Salt

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marketing

Understanding
the
marketplace
[continued]

04 4
marketing
marketing strategy

Market, Market Size, Marketplace and Market Share

• A market is any location, whether in person or online that
facilitates the exchange of goods between buyers and sellers.
• The market size is made up of the total number of potential
buyers of a product or service within a given market and the
total revenue that these sales may generate.
• A marketplace refers to your customers, their characteristics, and how your
company operates in order to fulfill their needs with your products and services.
• Market share: Out of total purchases of a customer of a product or service,
what percentage goes to a company defines its market share.
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marketing
marketing strategy

Understanding the market

To gain a better understanding of your market,
it's important to identify your competitors.
• Who else is making similar products?
• How much of the market do they control?
• What strategies are they using to expand their business?
This information will help you make informed decisions about your own
marketing strategy and give you a competitive edge in the market.

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marketing
the marketing process

Defining your competition

There are 3 main types of competitors:

Direct competition

Indirect competition

Substitute competition
(aka Replacement competition)

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marketing
the marketing process

Understanding Types of Competition

Direct Competition: VS

Competitors provide products or services that are virtually

identical to yours.
Indirect Competition: VS
Competitors offer similar, but not identical, products or
services that fulfill the same basic need.
Substitute (or Replacement) Competition:
Competitors offer different products or services that meet VS

the same need in an alternative way.

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marketing
marketing strategy

Market and Its Size: Key to Business Planning

Understanding your market and calculating the market size is as important as
knowing your competition for the following reasons:
• Estimating Potential Profit: The market size gives you an idea of the revenue
you could generate and helps determine if a new business idea is worth the
investment.
• Adapting Marketing Strategies: Knowing the size and characteristics of your
market helps develop a marketing strategy that addresses the unique needs of
your core audience, maximizing impact and efficiency.

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marketing
marketing strategy MARKET
CAPACITY

Market sizing : the TAM, SAM, and SOM Model

TAM
TAM (Total Addressable Market or Total How big is the largest market

Available Market): The total market demand

for your product or service. SAM
How big is the market you could
SAM (Served Available Market): The portion reach now
or segment of the total market that you are
able to potentially serve with your product or
SOM
service. What is the market you can reach
with your current resources
SOM (Serviceable Obtainable Market):
The portion of SAM that you can capture.
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marketing
the marketing mix

Example:
TAM

SAM
SOM

MARKET SIZE

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marketing
marketing strategy

Market Share: Your Piece of the Industry Pie

Market share is the percentage of total sales in a
market or industry that a specific company earns. It
tells you how big a player you are in your market.
To find your market share, divide your company's
sales by the total sales in the market and then
multiply by 100 to get the percentage.
Formula:
Market Share (%) = (Company’s Sales / Total Market Sales) × 100

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marketing
course overview
‣ Part 1
Defining Marketing
01. What is marketing
02. Core concepts
‣ Part 2
Marketing Process
03. The marketing process
04. Understanding the marketplace
‣ Part 3
Designing your marketing strategy
05. Segmentation, Targeting, Positioning
‣ Part 4
The marketing plan and program
06 Marketing Mix
07. Online Marketing

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marketing

Segmentation
Targeting
Positioning
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marketing strategy

Defining Your Target Market

Now that you’ve identified opportunities in your
market analysis, it is time to prioritize and decide
which ones you are going to pursue.
Remember, few products are designed to appeal
to absolutely everyone.
You want to split the market into a segment that
aligns best with your strengths and opportunities
and identify your target customers.

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marketing
marketing strategy

Can you evaluate

your interest in this
product?

What about this one?

Conclusion:
Not everyone can be
your customer

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marketing
marketing strategy

STP Marketing Model

The STP Model (STP Marketing
Model) refers to three key steps: S
Market
T
Market
P
Product
1.Segmentation
Segmentation Targeting Positioning
2.Targeting
Make sense of the Decide the best Determine how to
3.Positioning. market by dividing the customer to serve. position your product
market into groups of to most likely appeal
The STP Model provides a detailed customers to the selected target
analysis of your “offering of (segments). segment(s) and
stand out from
benefits” to a targeted audience. competitors.

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marketing
marketing strategy S
Market
Segmentation
Segmentation
The STP model starts with Market Segmentation.
Market segmentation is the process of dividing a
mass market into smaller, more defined groups
with similar characteristics.
These groups are called segments and should
usually have one or more than one common
aspect among them to be relevant.

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marketing
marketing strategy S
Market
Segmentation
Segmentation
There are 4 basic criteria for market
segmentation:
Geographic Demographic
A. Demographic segmentation: The Who
Market
B. Psychographic segmentation: The Why Segmentation

C. Geographic segmentation: The Where

D. Behavioral segmentation: The How Psychographic Behavioural

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marketing
marketing strategy S
Market
Segmentation
1. Geographic segmentation
Geographic Criteria
Geographic segmentation is a simple
way to group customers based on their • Country
physical location. • Region
• City
People living in the same geographic • Postal code E.g.
area often share other similarities • Language Individuals
beyond their location.
• Climate within
• Population 20 km of
Geneva

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marketing
marketing strategy S
Market
Segmentation
2. Demographic segmentation
Demographic Criteria
The most common type of market
segmentation is demographic
• Age
segmentation, which involves grouping • Gender
individuals based on shared • Income
characteristics such as age, gender, • Education
• Social status E.g.
income, education, occupation, and HES and
more. • Family structure
University
• Religion
Students
• Occupation

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marketing
marketing strategy S
Market
Segmentation
3. Psychographic segmentation (also
Psychographic Criteria
referred to as lifestyle segmentation)
Psychographic segmentation focuses
• Activity, Interest, Opinion (AIO)

on your customers’ personalities and • Hobbies

interests. • Life goals
• Values & Beliefs
The aim here is to segment customers • Lifestyles E.g.
according to their hobbies and Customers who
interests. prefer to buy
organic food

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marketing
marketing strategy S
Market
Segmentation
4. Behavioral segmentation
Behavioral Criteria
Behavioral segmentation involves the
grouping of customers according to their • Occasion or timing
usage patterns, spending habits, etc. • Rate of usage
• Benefit sought
By tracking online behavior, such as • Buyer journey stage
purchasing patterns, on-site activity, E.g.
• Spending habits
and other habits, companies can Customers
• Readiness to
personalize their marketing efforts to purchase looking for
meet the needs and preferences of Value-for-Money
• Loyalty status
different customer groups.

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marketing
marketing strategy S
Market
Segmentation
Sample
Market Segment Profile

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marketing
marketing strategy T
Market
Targeting
Market Targeting
The second part of the STP model is Targeting.
In this process, a company selects a specific group
of people, called a target market, from the larger
market.
The target market is a segment of people who
share common characteristics that the company
has identified as potential customers for its
products. The company then focuses its resources,
money, time, and efforts on this target market.
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marketing
marketing strategy T
Market
Targeting
Market Targeting
Target Market
In Market Targeting, the key is making
strategic decisions instead of trying to
appeal to everyone. Businesses determine
the most attractive segment(s) from those
identified during segmentation.
Factors to consider include:
• Market Size and Growth Potential Market
• Profitability
• Ease of reach Market Segments

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marketing
marketing strategy T
Market
Targeting
DAMP approach to Targeting
The DAMP approach, as developed by Philip Kotler, provides
clear guidelines for successful market segmentation.
It suggests that each segment must be:
• distinct from other segments
• easily accessible through marketing and distribution channels
• easily measurable
• profitable enough to provide a constant stream of future
revenues and profits.
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marketing
marketing strategy T
Market
Targeting
What does market targeting look like applied in the
business world?
Here is an example of a target market:
The target customers for Whole Foods Market are
Individuals and families with disposable income,
leading a healthy lifestyle, and environmentally
conscious. Most have college degrees and live in
upscale suburban or metropolitan areas.
A mix of psychographic, geographic, and demographic

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marketing
marketing strategy P
Product
Positioning
Positioning
Market positioning is the process of creating a unique image or
identity for a brand, which helps customers perceive it in a
certain way.
An effective positioning strategy highlights the unique
benefits of the product, making it stand out from the
competition.
This strategy aims to make your product
not just different from others but also
highly desirable to the target audience.
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marketing
marketing strategy P
Product
Positioning
Market Positioning
The last part of the STP model is Positioning. High Quality

In marketing and business strategy, market position

refers to the consumer's perception of a brand or Not Here
Your
Position

product in relation to competing brands or products.

Low Cost High Cost

In order to position products or brands, companies

emphasize specific features of their brand/product Not Here Not Here

(what it is, what it does and how, etc.) or they may try
to create a suitable image (inexpensive or premium, Low Quality
entry-level or high-end, etc.)
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marketing
marketing strategy P
Product
Positioning
Positioning:
Perceptual Mapping PRICE High
A perceptual mapping, also known Price vs Quality

as product positioning map, is a

helpful tool to showcase how
consumers perceive different
QUALITY
brands.
Low High
It allows businesses to compare
their products or services with
those of their competitors, from
the perspective of their customers. Low

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marketing
marketing strategy P
Product
Positioning
Different Types of Positioning Strategies
Positioning your product by:
• Attributes and benefits: Associate your brand/product with certain
characteristics or with certain beneficial value.
• Price: Associate your brand/product with competitive pricing.
• Quality: Associate your brand/product with high quality.
• Use/Application: Associate your brand/product with a specific use.
• Competitors: Make consumers think that your brand/product is
better than that of your competitors.
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marketing
marketing strategy

Positioning
A good position gives the product a USP
(Unique selling proposition).

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marketing
marketing strategy P
Product
Positioning
Example of Positioning:
Starbucks created this video
advertisement that lists the
following value proposition
statements:
• The Best Coffee
• Rich & Smooth Flavors
• The Finest Milk Used
• Natural and Clean
• 100% Recycled Paper
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marketing
marketing strategy P
Product
Positioning
Examples of Different Positioning:

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marketing Price High
marketing strategy

Positioning Exercice

Satisfaction

Standard High

Low

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marketing strategy

STP: Segmentation Targeting Positioning

S T P
Segmentation Targeting Positioning
Make sense Decide the best Stand out from
of the market customer to serve competitors

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marketing
course overview
‣ Part 1
Defining Marketing
01. What is marketing
02. Core concepts
‣ Part 2
Marketing Process
03. The marketing process
04. Understanding the marketplace
‣ Part 3
Designing your marketing strategy
05. Segmentation, Targeting, Positioning
‣ Part 4
The marketing plan and actions
06. Marketing Mix
07. Online Marketing

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