Marketing Process

Marketing Process
Marketing process consists of analyzing marketing opportunities, researching and selecting

target market, designing marketing strategies, planning marketing and controlling the
marketing efforts.
 It is required in all levels & planning is its integral part.
 Ultimate objective: is to create & deliver value to the market at a profit.
Approach: The value delivery sequence it has two phases: This is depicted bellow:
Value creation and delivery sequence
Choose the Value Provide the Value Communicate the Value
Customer Market Product Service Sourcing Distributing Sales Sales

Value
segmentation selection/ develop- develop- Pricing force promotion
Advertising
positioning
focus ment ment Making Servicing
1. Strategic Marketing:
To decide (choose the value) S  Segmenting
T  Targeting
P  Positioning - value positioning.
2. Tactical Marketing
1st Stage (Provide value)  Product Development
 Service development
 Price Fixation
 Distribution - Channel
2nd Stage  Promotional Mix

(Communicate Value) Advertising
 Personal Selling
 Publicity
 Public Relation
The first phase, choosing the value, represents the "homework" that marketing must do
before any product exists. The marketing staff must segment the market, select the
appropriate market target, and develop the offering's value positioning. The formula
"segmentation, targeting, positioning (STP)" is the essence of strategic marketing. Once the
business unit has chosen the value, the second phase is providing the value. Marketing must
determine specific product features, prices, and distribution as part of tactical marketing. The
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task in the third phase is communicating the value. Here further tactical marketing occurs in
utilizing the sales force, sales promotion, advertising, and other promotional tools to inform
and promote the product.
Marketing Plan
Nature of Marketing Plan
 The marketing plan is seen as the very symbol & essence of purposeful marketing
management.
 Marketing plan may be considered as the means of linking the marketing function with
principle of management by objective.
 Marketing plan exists with the system of strategic planning. Strategic planning precedes
and implementation follows the marketing plan as follows:
Strategic Planning
 Objectives
 Definition of business Area
 Strategic Program
 Resource Requirement
The Marketing Plan & its Approval
Implementation
So the nature of marketing plan is not technocratic but managerial.
Definition:
A marketing plan is a written document that spells out the goals, strategies and tactics that
will be used to gain & maintain the competitive position & results that the company is
seeking.
Functions:
The purpose of marketing plan must be understood to appreciate its significance. The
principal functions of marketing plan are:
1. It explains the situation - both present & future.
2. It specifies the results that are expected, so that the enterprise can anticipate what its
situation will be at the end of the planning period
3. It identifies the resources that will be needed to carryout the planned action.
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4. It describes the actions that are to take place so that responsibilities can be assigned
for implementation
5. It permits monitoring the ensuring action & results so that the control may be exerted.
Contents of Marketing Plan:

1. Executive Summary and table of Contents -
 Summary of plan's main goals & recommendation
 A table of contents should follow the executive summary
2. Current Marketing Situation -
 Relevant background data on sales, cost, profit, the market, competitors,
distribution and macro environment
3. Opportunity & issue analysis -
 Identify the SWOT & the main issues
4. Objectives -
 Define the plan's financial & marketing goal (in terms of sales volume, market
share)
 Financial Goal  Annual Role in %
 N.P. - or
 Cash flow
5. Marketing Strategy -
 Presents a broad marketing approach that will be used to achieve the objective. It
should contain the following:
a) Business Strategy - Cost leadership, Differentiation & Focus
b) Marketing Strategy -
 Target market
 Positioning
 Product line & Service
 Price
 Distribution
 Promotion
6. Action program - Development of Marketing mix needed to achieve the objective &
marketing strategy.
7. Projected P/L statement (in budget)-It should contain

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(a) Revenue
(b) Cost.
Revenue should include -
Forecasted sales volume - average price & forecasted sales revenue (sales volume in unit 
price)
Expense should include
 Cost of Production/acquisition
 Marketing Costs
Then show the projected net Profit.
8. Controls - Monitoring the plan at a regular interval contingency plan to meet adverse
situation.

Marketing Process

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Marketing Process

Marketing process consists of analyzing marketing opportunities, researching and selecting

Choose the Value Provide the Value Communicate the Value

Customer Market Product Service Sourcing Distributing Sales Sales

2nd Stage  Promotional Mix

The Marketing Plan & its Approval

So the nature of marketing plan is not technocratic but managerial.

Contents of Marketing Plan:

7. Projected P/L statement (in budget)-It should contain

Revenue should include -

Expense should include

Then show the projected net Profit.

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