Marketing Management
This domain tests segmentation, targeting and positioning, the marketing mix, product and brand decisions, pricing, channels, communication and measurement.
Core rules
- STP: segment by demographic, geographic, psychographic or behavioural bases; evaluate size, growth, profitability, accessibility and fit; target undifferentiated, differentiated, concentrated or micromarketing; position on attributes valued by customers.
- 4Ps: product (core, actual, augmented), price, place, promotion. Services add people, process and physical evidence.
- PLC: introduction, growth, maturity, decline; strategy changes at each stage.
- BCG: stars (high growth, high share), cash cows (low growth, high share), question marks (high growth, low share), dogs (low growth, low share).
- Pricing: cost-plus, break-even, value-based, skimming, penetration, psychological, bundle.
- IMC tools: advertising, sales promotion, personal selling, PR, direct and digital. Measure CAC, LTV, conversion and share of voice.
Worked example. Price 500; variable cost 300; fixed cost 200,000. Unit contribution = 200; break-even = 200,000/200 = 1,000 units. At a penetration price of 450, contribution = 150; break-even = 1,333 units - 33% more volume is needed before the price cut creates profit.
Traps. Segmentation is not targeting; a segment must be actionable. PLC is about product category, not brand. A cash cow should fund stars and question marks, not absorb all cash. High market share does not always mean high profitability. Correlation in market research is not causation.