Chapter 3.

The Marketing Process

 THE MARKETING PROCESS
The marketing process consists of the following activities:
1. Analysing market Opportunities (where are we?)
2. Selecting target markets (Where de we want to be?)
3. Developing the marketing mix (How should we get there?)
4. Managing the marketing effort (M&E)

 At the centre of the process stand the consumers.

 The objective is to build a strong & profitable
customer relationship.
The Marketing Process
The Marketing Mix Variables
Four Ps Four Cs

 Product Customer solution

 Price Customer cost
 Place Convenience
 Promotion Communication
 To be effective, marketing people have to:
 consider the four Cs first and then
 build the four Ps based on the requirements.
Marketing Process Model
Situation Analysis
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V
Marketing Strategy
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Marketing Mix Decisions
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V
Implementation & Control
 1. Situation Analysis:
• 5 C Analysis - company, customers, competitors, collaborators,
climate.
 Company represents the internal situation; the other 4 cover
aspects of the external situation
• PEST analysis - for macro-environmental political, economic,
societal, and technological factors.
 A PEST analysis can be used as the " climate" portion of the 5C
framework.
• SWOT analysis - strengths, weaknesses, opportunities, and
threats - for the internal and external situation.
 A SWOT analysis can be used to condense the situation analysis
into a listing of the most relevant problems and opportunities and
to assess how well the firm is equipped to deal with them.
2. Marketing Strategy:
 Once the best opportunity to satisfy unfulfilled customer needs
is identified, a strategic plan for pursuing the opportunity can
be developed.
 Market research will provide specific market information that
will permit the firm to select the target market segment and
optimally position the offering within that segment.
 The result is a value proposition to the target market.
 The marketing strategy then involves:

1. Segmentation
2. Targeting (target market selection)
3. Positioning the product within the target market
4. Value proposition to the target market
3. Marketing Mix Decisions:
 Detailed tactical decisions then are made for
the controllable parameters of the marketing
mix. 4Hard Ps and 3Soft Ps
 The action items include: 4Hard
1. Product development - specifying, designing,
and producing the first units of the product.
2. Pricing decisions
3. Distribution contracts
4. Promotional campaign development
 The action items include:3soft Ps: pple, process PE
4. Implementation & Control:
 Once, the marketing plan has been developed and the product
has been launched. AND
 Given that few environments are static, the results of the marketing
effort should be monitored closely.
 As the market changes, the marketing mix can be adjusted to
accommodate the changes.
 Often, small changes in consumer wants can addressed by
changing the advertising message.
 As the changes become more significant, a product redesign or
an entirely new product may be needed.
 The marketing process does not end with implementation –
continual monitoring & adaptation is needed to fulfill customer
needs consistently over the long-term.
 Group Assignment
Develop a market plan for a
selected organization
Follow the following guideline
herewith

point=20%
Presentation=10%
Submission date= 22/01/2021
Complete your marketing plan: Follow this format
1. Title page 5. Current Situation-Consumer Analysis
2. Executive Summary o nature of the buying decision
3. Current Situation – Macro o participants
environment o demographics
o economy o psychographics
o legal o buyer motivation and expectations
o government o loyalty segments
o technology 6. Current Situation - Internal
o ecological
o sociocultural o company resources
o supply chain  financial .people
 Time .skills
4. Current Situation -Market
Analysis o objectives
o market definition  mission statement and vision statement
o market size  corporate objectives
o market segmentation  financial objective
o industry structure and strategic groupings  marketing objectives
o Porter 5 forces analysis  long term objectives
o competition and market share  description of the basic business philosophy
o competitors' strengths and weaknesses  o corporate culture
o market trends
 10. Marketing Strategy - segmented marketing actions
7. Summary of Situation Analysis and market share objectives
o external threats  o by product,
o external opportunities
 o by customer segment,
 o by geographical market,
o internal strengths
 o by distribution channel.
o internal weaknesses
11. Marketing Strategy - Price
o Critical success factors in the industry  o pricing objectives
o our sustainable competitive advantage  o pricing method (e.g.: cost plus, demand based, or
competitor indexing)
8. Marketing research  o pricing strategy (e.g.: skimming, or penetration)
 o information requirements  o discounts and allowances
 o research methodology
 o price elasticity and customer sensitivity
 o research results
 o break even analysis at various prices
12. Marketing Strategy - promotion
9. Marketing Strategy - Product  o promotional goals
 o product mix  o promotional mix
 o product strengths and weaknesses
 o advertising reach, frequency, flights, theme, and
media
 perceptual mapping
 o sales force requirements, techniques, and
 o product life cycle management and new product management
development  o sales promotion
 o Brand name, brand image, and brand equity  o publicity and public relations
 o the augmented product  o electronic promotion (e.g.: Web, or telephone)
 o product portfolio analysis  o word of mouth marketing (buzz)
 B.C.G. Analysis  o viral marketing, ad…via social media for eg
 contribution margin analysis
 Quality Function Deployment
 13. Marketing Strategy- 15. Financial Summary
Distribution o assumptions
o geographical coverage
o distribution channels o pro-forma monthly income
o physical distribution and logistics statement
o electronic distribution o contribution margin analysis
14. Implementation o breakeven analysis
o personnel requirements o ISI: Internet Strategic Intelligence
assign responsibilities
give incentives 16. Scenarios
training on selling methods o Prediction of Future Scenarios
o financial requirements o Plan of Action for each Scenario
o management information systems
requirements 17. Appendix
o month-by-month agenda  o pictures and specifications
PERT or critical path analysis of the new product
o monitoring results and benchmarks  o results from research already
o adjustment mechanism
completed
o contingencies (What if's)
Marketing Plan Outline:
1• Executive Summary:
 A high-level summary of the marketing plan.
2• The Challenge:
 Brief description of product to be marketed and associated goals, such as sales figures and strategic
goals.
3• Situation Analysis:
 As described previously
4• Company Analysis:
 Goals; Focus; Culture; Strengths; Weaknesses; Market share
5• Customer Analysis:
 Number; Type; Value drivers; Decision process; Concentration of customer base for particular
products
6• Competitor Analysis:
 Market position; Strengths; Weaknesses; Market shares; Collaborators; Subsidiaries, joint ventures,
and distributors, etc.
7• Climate: Macro-environmental PEST analysis:
 Political and legal environment; Economic environment; Social and cultural environment;
Technological environment
8• SWOT Analysis:
 A SWOT analysis of the business environment can be performed by organizing the environmental
factors as follows:
 The firm's internal attributes can be classed as strengths and weaknesses;
 The external environment presents opportunities and threats.
9• Market Segmentation:
 Present a description of the market segmentation as follows: Description; Percent of sales; what they
want; how they use product; Support requirements; How to reach them; Price sensitivity .
10• Alternative Marketing Strategies:
 List and discuss the alternatives that were considered before arriving at the recommended strategy. Alternatives
might include discontinuing a product, re-branding, positioning as a premium or value product, etc.
11• Selected Marketing Strategy:
 Discuss why the strategy was selected, then the marketing mix decisions (4 P's) of product, price, place
(distribution), and promotion.
12• Product:
 The product decisions should consider the product's advantages and how they will be leveraged. Product decisions
should include: Brand name; Quality; Scope of product line; Warranty; Packaging
13• Price:
 Discuss pricing strategy, expected volume, and decisions for the following pricing variables: List price;
Discounts; Bundling; Payment terms and financing options; Leasing options
14• Distribution (Place):
 Decision variables include: Distribution channels, such as direct, retail, distributors & intermediates; Motivating the
channel - for example, distributor margins; Criteria for evaluating distributors; Locations; Logistics, including
transportation, warehousing, and order fulfillment
15• Promotion:
 Advertising, including how much and which media; Public relations; Promotional programs; Budget; determine
break-even point for any additional spending; Projected results of the promotional programs
16• Short & Long-Term Projections:
 The selected strategy's immediate effects, expected long-term results, and any special actions required to achieve
them. This section may include forecasts of revenues and expenses as well as the results of a break-even analysis.
17• Conclusion: Summarize all of the above.
18• Appendix
 • Exhibits: Calculations of market size, commissions, profit margins, break-even analyses, etc.
Any Question?
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AVIOR