5 Marketing Theory Examples

There are several famous marketing theories about which we speak about all the time. One of them is the most famous, the theory of 4Ps. I personally have learned the theory and thought that is the real marketing before I met the practical and useful marketing theories based on true knowledge. And what are these theories? Can they give us a real benefit in our everyday tasks?

Let’s see through the following 5 great marketing theories.

1. Theory of 12 brand archetypes.

The following theory suggests that if there is a brand, it also should have its specific archetype out of the 12 ones. And what is archetype? The word “archetype” means an original pattern in the ancient Greek language. These patterns are combined in 12 groups, which show all the human motifs.

Here are 12 archetypes.

Almost every successful brand uses the following theory in their tactics. Apple convinces us to think different. To be a completely different person. Just “Think Different”. The archetype of Apple is Outlaw. Outlaw archetype wants to ruin the structures that are not working. Apple created a whole new level of technology by ruining the old technologies.

Another great example of archetypal marketing is the Nike experience. If somebody wears Nike he/she automatically becomes a Hero. He/she becomes very strong, competent and powerful. During decades Nike has developed the Hero strategy very professionally by saying people “Just do it” just be a hero, the real savior, the real master.

Every successful brand has implemented the strategy of 12 brand archetypes. We need to take just 8 steps for completing archetypal branding with the following book.
1. Find out your brand archetype.
2. Create a logo.
3. Do the packaging.

2. The blue ocean tactics.

In their book, Blue Ocean Strategy, W. Chan Kim & Renée Mauborgne created the terms ’red ocean’ and ‘blue ocean’ to present the situation in the market.
So The following book says that 2 kinds of markets exist. The first one is Red ocean, where there is a full competition. The company must take shares of others. And the blue ocean, where the company itself creates its own market.

Here is the strategy of The red Ocean.

Compete in existing market space. Win the competition. Exploit existing demand. Compete in the value-cost trade-off. Do not pay attention to the value-cost trade-off.

Here is the strategy of the blue ocean.

Create a brand new, uncontested market space. Make the competition irrelevant. Create and gain new demand. Do not pay attention to the value-cost trade-off.

Now let’s look at a blue ocean example.

Nintendo Wii is a pure example. They have launched their product in 2006 and lowered the costs of production. They were in sever red ocean where Xbox and Playstation ruled the game. Wii was a complete innovation, gaming with a little console.

As well as they introduced wireless motion control sticks. So Nintendo has offered a range of new benefits and features that were not there in the world of gaming. They have created a completely new blue ocean, where their customers are older people who like to buy a computer for children, spanning non-gamers. And all of these with a very affordable price.

The book suggests that if we want to win without competition, better to choose a blue ocean strategy.

What should we do for creating a blue ocean strategy? 4 steps are the answer.

1. Reducing factors below the industry standards.
2. Some factors that are taken by granted should be eliminated.
3. Some factors should be raised the industry standards.
4. Some factors should be created that was never there before.

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3. Contagious, why things catch on. The book by John Berger.

The book gives us secrets means to attract customers. And here are the 6 ways to do that.

• Social Currency:
This is a self-invented currency. Social currency is an idea or theme about which people like to speak about. They become immediately remarkable when they start speaking about it. This is something that makes them interesting, exclusive, distinctive, attractive. Example, Speaking about the secrets of politics kind of gives people a social currency.
• Triggers:
In order to have an association in people’s minds the company should enforce their products with triggers. A famous example of a trigger is Coca-Cola’s red color associations, or Kit-Kat has the trigger connected with the break that people have every day.
• Emotion:
The author reminds us of the emotional factor of people. All of us feel something before sharing it. Maybe it is a surprise or laughter. What makes us share? Maybe it is the fear that appeals to us. Emotion rules always, not only the idea matters.
• Public:
Here the key is public motivations, how everybody thinks and does. It is very important that everybody think that coca-cola is great with dinner, then a few will be against the stream. Public opinion is very crucial. Brands should think a lot and make public opinion to speak for themselves.
• Practical value:
What benefit do the brands give to people? If we buy something, after a few days it spoils. Then the brand will go nowhere. Products should have a practical benefit, something that wins the other products, something more than the other products.
• Stories:
Stories are told everywhere to communicate with people, to communicate with customers. Coca coal speaks about boy and girl friendship, they love each other and drink coke. Or Nike speaks about Christiano Ronaldo’s day, the champion in real life.

4. Customer characters, target markets by Garrison group.

In general, it is accepted to do the customer segmentation according to their age, geographic, where they work and such kind of facts. Garrison group has created people segments according to their habits, preferences, how they behave in the community. They show us more than 25 people segments, each of them has a specific kind of behavior and preferences.

Here are 2 examples of Garrison groups of customer characters.

Fulfillers. Age 30-50

Fulfillers are people, whose career rule their lives. They have a constant drive to climb the career ladder. They have a keen sense of challenges and risks. The family always adopts their priorities.
Fulfillers want to be seen as successful people and need recognition from family, friends, relatives.

Active social life is their part of a routine, like traveling and go abroad more than 4 times a year.
They like using premium brands, want to pay extra for the quality. Quick decision makers, like trying new brands, spending time in shopping centers. news, financial pages, entertainment, sport. Business/corporate news magazines are their topics of interest.

Hedonists. Age 16-30

For Hedonist every day has to be as much fun as possible. They are very outgoing, tend to go to parties, like challenges and changes. Changing workplaces, going to new places, meeting new people.
Hedonists like standing out in the crowd, being in tune with the latest fashion. Like keeping everything under control, have a traditional mucho attitude. In their priority list family is at the bottom.
They like using mainstream brands, buy authentic brands whenever it is possible. They put quantity over quality. They are rather impulsed purchasers, not organizing shopping trips, shopping is smaller stores.
Hedonists use media mainly for entertainment and fun, interested in include cars, sports, men’s titles. Watch mainly sports programs, reality shows, looking for information about parties on the web.

5. Customer and brand pyramids by Garrison group.

Here Paul Garrison puts spell on 2 kinds of pyramids.
The first is called the customer pyramid. I already told that they have more than 25 customer characters. At first, we have to choose which character is our main target, then take out 3 main preferences of the character that we are targeting.
Based on the core preference we give a functional benefit of our product. Then it is comes time for the emotional benefit.

• 3 key preferences.
• 3 key functional benefits.
• 3 emotional benefits. Example.

Mercedez Benz targeting Fulfillers, about which I mentioned above.

3 key preferences.

1st they like keeping up with new technologies.
2nd They like to be seen as very successful people.
3rd Like using the most premium brands.

3 main functional benefits.

1st Mercedez gives the newest technologies in driving and in electronics
2nd The luxurious exterior and interior make the driver seem very successful.
3rd The name Mercedez is already a symbol of premium.

3 main emotional benefits.

1st customer feels at ease as technology has made everything simple.
2nd The sense of proud and high self-esteem.
3rd Feeling unique and a member of a narrow premium club.

Now let’s look at the brand pyramid.

1st it should pay the cost of entry. 3 factors
2nd for each cost of entry we should have a differentiation factor.
3rd here we have the crucial experience for the customer.

We can discuss an example of a café in downtown.

Cost of entry.

• Beautiful bar.
• Happy waiters and staff.
• New menus and dishes.

Differentiation factors.

• The bar is full of exotic drinks and the design is exotic.
• Staff is very helpful and happy.
• The menu is done creative way, many vegetables, and new dishes.

Crucial experience.
Feel unexpected emotions, like in the jungle, see exotic things.

I think Garrison’s pyramids are very practical and useful and need to be done for every business.

Overall these 5 theories are masterpieces. If someone puts in practice these 5 theories, then they succeed. They are based on true facts. One of these 5 is not enough for complete marketing analysis. A true marketing manager should consider all these 5 and put in one direction. If it is the analysis of the market, then each of us should go for a blue ocean strategy.

When it comes to customer segmentation, then the customer characters of Garrison group gives all the solutions. Then it comes to campaign creation, then we immediately should think about Garisson group pyramids. The book contagious gives us the true secrets of how to appeal to customers, what are the factors that they engage with products or ideas. And finally, the theory of 12 archetypes reveal the secrets of branding.

The phenomenon of branding is not only the logo or colors. The following theory gives all kind of keys for communicating with customers. The brand becomes a living creature, phenomenon, not just a product.