Marketing Foundations and Strategy
Core concepts
Marketing is the disciplined process of creating, communicating, delivering, and capturing value for a chosen set of customers. Candidates must be fluent in the marketing mix (product, price, place, promotion), segmentation-targeting-positioning (STP), and the difference between a marketing strategy (who we serve and how we win) and a marketing plan (tactics, budgets, timelines).
Know the strategic planning hierarchy: mission and vision, corporate objectives, SBU strategy, functional marketing strategy. Understand portfolio tools such as the BCG matrix (stars, cash cows, question marks, dogs) and Ansoff's growth matrix (market penetration, market development, product development, diversification). Recognize Porter's generic strategies (cost leadership, differentiation, focus) and the value proposition as the bridge between customer need and competitive advantage.
Traps in questions
- Confusing segmentation (dividing a market) with targeting (choosing segments) and positioning (owning a place in the customer's mind).
- Treating the 4 Ps as independent; exam items often hinge on their alignment.
- Mixing market development (new market, existing product) with product development (new product, existing market).
- Assuming a cash cow should be divested; the correct answer is usually to harvest it to fund stars and question marks.
Worked example
A firm sells a mature coffee brand and wants growth with low risk. Ansoff logic: selling more of the same coffee to current customers is market penetration (lowest risk); launching the same coffee into a new country is market development; a new cold-brew line for current customers is product development; entering tea is diversification (highest risk).
Rule of thumb: Strategy answers where to play and how to win; tactics answer what we execute this quarter.