Marketing cheat sheet

Segmentation and targeting

Segmentation groups a market using relevant characteristics. Targeting chooses which groups to serve; positioning describes the intended offer and distinction.

Define a specific audience before choosing a message.

Marketing mix

The traditional four Ps are product, price, place and promotion. They describe connected choices, not four independent guarantees of success.

A distribution decision can change which customers can access an offer.

Customer value

Value compares perceived benefits with the costs and effort of obtaining them. A feature is not automatically a customer benefit.

Explain what a feature helps the customer do.

Measurement

Choose a measure that matches the objective and define the denominator. Correlation with a campaign is not sufficient evidence of causation.

Conversion rate = relevant completed actions ÷ relevant opportunities.

Research before positioning

Market research can investigate needs, behaviour and alternatives. Separate what respondents say from observed behaviour, and evaluate whether the sample fits the target market.

Interview findings can suggest a hypothesis to test; they do not automatically measure market size.

Positioning

Positioning describes the intended place of an offer relative to alternatives for a defined audience. It needs a credible benefit and evidence, rather than only a slogan.

Specify who the offer serves and the relevant reason to choose it.

Acquisition and retention

Acquisition concerns gaining customers; retention concerns continuing relationships. Measure the relevant cohort and time period before comparing results.

A month’s new customers and the proportion of last month’s customers who return are different metrics.

Conversion rates

A conversion rate needs a defined action and denominator. Changes in audience mix, attribution and tracking can alter a reported rate without the same change in underlying demand.

50 purchases from 1000 eligible visits is a 5% visit-to-purchase rate.

Worked example: campaign revenue

A teaching campaign spends 400 currency units and attributes 1200 in revenue. Revenue divided by advertising spend is 3.0. Profit cannot be inferred without product and other costs.

Return on ad spend is a revenue ratio; it is not automatically a profit measure.

Common mistake: correlation is attribution

A rise in sales during a campaign can also reflect seasonality, price, distribution or other changes. Stronger causal attribution needs an appropriate comparison or experimental design.

Define the counterfactual: what would probably have happened without the campaign?

Check your understanding

Do 2000 impressions and 100 clicks imply a 5% click-through rate?

Yes, if those are the matching eligible totals: 100/2000 = 5%. It does not state a purchase-conversion rate.

Curriculum connections

Sources