Public Enterprise Management Ch14. Advanced marketing — STP, 4P, digital marketing, CRM
1. STP Strategy
The core strategic framework of marketing — Segmentation → Targeting → Positioning.
Market Segmentation
Classifying the market into meaningful consumer groups.
Segmentation Criteria
| Criterion | Example |
|---|---|
| Demographic | Age, gender, income, occupation |
| Geographic | Region, urban/rural, climate |
| Psychographic | Lifestyle, personality, values |
| Behavioral | Purchase frequency, usage rate, loyalty |
Conditions for Effective Segmentation: Measurability / Accessibility / Substantiality / Actionability
Targeting
| Strategy | Description |
|---|---|
| Undifferentiated Marketing | Single product and message for the entire market |
| Differentiated Marketing | Different strategies for multiple market segments |
| Concentrated Marketing | Focusing on a single market segment |
| Personalized Marketing | One-on-one customization |
Positioning
Establishing a distinctive position for the product in the minds of target customers.
Positioning Map: Visualizing the positions of competing products along two attribute axes.
2. 4P Marketing Mix
Four marketing tools proposed by McCarthy: Product, Price, Place, Promotion.
Product
Product Life Cycle (PLC)
| Stage | Characteristics | Strategy |
|---|---|---|
| Introduction | Low sales, losses | Building awareness, selective distribution |
| Growth | Rapid sales growth, increased competition | Expanding market share |
| Maturity | Peak sales, fierce competition | Market segmentation, repositioning |
| Decline | Decreasing sales | Harvesting strategy or withdrawal |
Product Mix: Width × Depth × Consistency of product lines
Price
Pricing Strategies
| Strategy | Description |
|---|---|
| Cost-Plus | Cost + profit margin |
| Competition-Based | Based on competitor prices |
| Value-Based | Based on consumer perceived value |
| Skimming | High price → gradual price reduction (innovative products) |
| Penetration | Low-price entry → securing market share |
| Psychological | 9,900 KRW, bundle pricing |
Place
Distribution Channel Length: Direct (Level 0) → Retailer (Level 1) → Wholesaler & Retailer (Level 2) → Wholesaler, Jobber & Retailer (Level 3)
Distribution Strategies
- Intensive Distribution: As many outlets as possible (convenience goods)
- Selective Distribution: A few qualified outlets (shopping goods)
- Exclusive Distribution: One outlet per specific region (specialty goods)
Promotion
AIDA Model: Attention → Interest → Desire → Action
Promotion Mix
| Tool | Characteristics |
|---|---|
| Advertising | Non-personal, mass reach, low cost per unit |
| Personal Selling | Two-way communication, high cost |
| Public Relations (PR) | High credibility, difficult to control |
| Sales Promotion | Short-term purchase incentives (coupons, discounts) |
| Direct Marketing | Personalized, DM, email, social media |
3. Consumer Behavior
5 Stages of Purchase Decision Making
Problem Recognition → Information Search → Evaluation of Alternatives → Purchase Decision → Post-Purchase Behavior
Post-Purchase Dissonance (Cognitive Dissonance)
Anxiety after purchasing a high-involvement product about whether another alternative might have been better. Solutions: Strengthening after-sales service (A/S), purchase confirmation messages.
Factors Influencing Consumer Behavior
- Personal: Age, occupation, economic situation, lifestyle, personality
- Psychological: Motivation (Maslow), perception, learning, attitude
- Social: Reference groups, family, social class
4. Digital Marketing and CRM
Digital Marketing Channels
| Channel | Description |
|---|---|
| SEO | Organic traffic through search engine optimization |
| SEM | Purchasing search ads (keyword advertising) |
| Social Media Marketing | Utilizing Instagram, YouTube, TikTok |
| Content Marketing | Providing value through blogs and videos |
| Email Marketing | Direct reach to target customers |
| Influencer Marketing | Creator collaboration |
ROAS (Return on Ad Spend) = Ad Revenue / Ad Spend × 100%
Customer Relationship Management (CRM)
A strategy that utilizes customer data to build long-term relationships and increase loyalty.
3 Stages of CRM: Customer Acquisition → Customer Retention → Customer Value Enhancement
Customer Lifetime Value (CLV): The expected profit a single customer generates over their lifetime.
RFM Analysis
- R (Recency): Time of most recent purchase
- F (Frequency): Purchase frequency
- M (Monetary): Purchase amount
5. Brand Management
Brand Equity — Based on Keller:
- Brand Awareness
- Brand Image (Associations)
- Perceived Quality
- Brand Loyalty
Brand Strategies
| Strategy | Description |
|---|---|
| Individual Brand | Separate brand for each product |
| Family Brand | Using the corporate name for all products |
| Mixed Brand | Combination of corporate name and individual name |
| Brand Extension | Launching new products under an existing brand |
| Line Extension | Adding variant products within the same category |
Summary (Frequently Tested Keywords)
| Keyword | Related Theory |
|---|---|
| STP | Segmentation, Targeting, Positioning |
| PLC | 4 stages: Introduction → Growth → Maturity → Decline |
| Skimming vs. Penetration | New product pricing strategies |
| AIDA | Advertising effect stages |
| RFM | CRM customer analysis tool |
| CLV | Customer Lifetime Value |
| Keller | Brand equity model |
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